2012 statistics on Swiss watches exportations show that China is the third strongest sales country. However, after an increase of more than 50% at the beginning of 2012, the 12 month growth for this market dropped to 0.6 %. The Chinese consumers however remained important clients for the Swiss watch industry, particularly as tourists on their travels abroad.
Increasing number of travelling Chinese consumers
KPMG’s 6th annual report on the luxury market in China confirms the increased impact of travelling Chinese consumers. Based on the results of a survey of more than 1200 Chinese middle class consumers and conducted by market research TNS, the “Global Reach of China Luxury” study sheds light on the evolving factors that influence their purchasing decisions and brand expectations.
Key finds show that Mainland Chinese consumers travelling overseas increased to 71% in 2012. These results clearly outline that the world’s most prominent luxury groups see a direct impact on their market share outside of China. Mainland Chinese consumers are an important sales target both within China and at popular travelling destinations around the World.
Strong online presence is crucial
The survey also analyses the use of digital media to engage high-end consumers. 70% of the surveyed population looks up luxury brands on the internet once a month. 40% are interested in purchasing online. Online sales are not yet exploding, but that online presence is essential.
Interestingly enough, the survey raises the importance given by the Chinese consumers to the origin of products; Switzerland remains the top country of origin for watches.
Finally, it includes thirteen case studies and insightful interviews with CEOs and senior executives from a wide range of luxury companies.
I invite you to read the Global Reach of China Luxury study and find out more on how the trends reported may impact your company.