Rupert Hoogewerf: "Although China's New Rich May Be Wealthy Or Powerful, They May Not Have Taste"
Rupert Hoogewerf, founder of the Hurun Report, recently spoke to Xinmin about the current state of the Chinese luxury market, and how the nouveau riche are currently shaping it -- both positively and negatively.
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Contents
- "If Everyone Says Lafite Is Good, The Thinking Goes, You Can't Go Wrong By Choosing Lafite"
- Xinmin (XM): You launched your China Rich List in 1999, so you've been dealing with wealthy mainland Chinese for about 12 years now. In your view, what stage are China's wealthy at in terms of brand awareness?
- Rupert Hoogewerf (RH)
- XM: Regarding the differences between wealthy Chinese and those from developed countries, how do attitudes toward luxury differ? It's said that many foreign brands that pass themselves off as luxury in China aren't considered that way at home. So are wealthy Chinese and average Chinese all guilty of "misreading" luxury brands?
- RH
- XM: Last year, total Chinese spending on luxury goods reached US$13 billion, and Goldman Sachs recently reported that China's luxury market share has reached 15 percent, three percent higher than 2009. Yet, at the same time, China seems to be filled with people who consider it embarrassing to carry an LV bag. Some people say that luxury in China is like "screaming in bed" (叫床) -- you don't want to be too loud, but you also don't want nobody to hear you. How do you think luxury brands will balance this dilemma: if too many people are buying luxury goods they risk losing their "noble" status and mystery, yet the brands don't want to sell to a tiny audience?
- RH
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