Chinese Consumption of Luxury Goods Helps Stimulate the Global Economy

Under the influence of the financial crisis in Europe, the global market was slow. However, the consumption of luxury goods seems to be the exception. Some experts even pointed out that Chinese consumption of luxury goods played an important role in the development of the world economy. The luxury goods industry is particularly concerned about the Chinese market. Although the average income of individuals is not as high as in developed countries, the sharp gap between individual incomes allows luxury brands to develop a large market. It was reported that consumption of luxury goods in China last year exceeded 1 trillion yuan, an increase of more than 20% in 2010. These data are based only on statistics of Chinese national stores.


According to the forecast made by McKinsey & Company, in the world consumption of 명품 goods (except private vehicles and airplanes, etc.). China’s share in 2010 reached 10%. In 2015, it is expected to reach 20%. An analyst at a German consulting firm said that if this trend continues, China’s share in global luxury consumption is expected to reach 70%. Although the exact forecast varies from country to country, it cannot be denied that Chinese consumption of luxury goods will permanently affect the global economy.


As for Europe, the USA and other Western countries experiencing financial difficulties, the growth in the consumption of luxury goods is a timely help, so it supports the world economy to a certain extent. To preserve the value of a brand, many luxury goods companies prefer to enter into contracts with national luxury goods companies, or luxury goods companies, on their own. Although some companies have contracts with foreign manufacturing enterprises, the ratio between domestic production and foreign production is higher than in other manufacturing industries as a whole. In addition, sales growth will also increase the employment rate in Europe and the USA.

Economic policy

In addition, the economic crisis is different from the global financial crisis of 2009. Methods of economic policy, such as fiscal expansion, which can stimulate the world economy, are limited. Therefore, many classes will illuminate the luxury market in a new way. In 2011, to help Spain, China bought 400 million euros of debt, and consumption of luxury goods by Chinese tourists in Europe reached 50 billion US dollars, which can fully demonstrate the old situation.

Manufacturers of luxury goods are always striving to transfer various storage and distribution tasks to specialized logistics service providers so they can focus more on their core business. For this reason, luxury goods logistics companies must meet their requirements so that these products reach final customers either directly or in retail stores in good condition and on time. Working with luxury goods requires a focus on specialization, including third-party logistics for the retail and hospitality industry. In addition to this, success in this business requires professional time management, maintenance and inventory, as well as cargo tracking.