Watches, jewellery, bags and clothing are among the top choices for Chinese consumers when they make their first luxury purchases, simply because they can wear them every day and show them off all the time.
This only represents the initial stages of luxury consumption, however. The real luxury lies in the lifestyle associated with these products.
With this in mind, how far away could Chinese consumers be from stepping into the real world of luxury products, which includes everything from brand name bedding to teacups and even ashtrays?
French luxury brand Hermes has been patiently anticipating the arrival of these kinds of trends, and believes there is still a lot of room for these products to develop a consumer base.
"Our Chinese customers have already bought the Art of Living line in our stores. Some buy items for use at home and in the office, but some buy the items for their friends and relatives," says Segolene Audras, managing director of Hermes China operations.
Audras says Hermes customers have been eagerly buying the brands traditional products, such as silk ties and leather bags, but they have also started showing interest in the companys Art of Living line. They buy Hermes towels for their summer holiday trips, for example, or table sets for family gatherings.
"We have seen a growing number of these customers here, who want to either treat themselves or share something nice with their family and friends," Audras says.
Hermes is one of a handful of farsighted brands that have already launched home and leisure-oriented products in China, even though the market is still developing.
The companys "Art of Living" collection was introduced to the nation during the opening of the brands first boutique here in 1997.
"We believe every Hermes boutique should display products from all of our 14 departments," Audras says. "We are now creating more room to display all of these lines, including the Art of Living line. This means weve had to further expand our existing boutiques."
Hermes 14 product categories include leather products, silk, ties, menswear, ladies wear, perfume, watches, agendas and small leather products, shoes, accessories, riding equipment, home and leisure products, tableware and jewellery.
The "Art of Living" collection is incredibly diverse, but is organized around three main themes designed for the individual customer and those close to them, or for friends and colleagues as gifts.
The line also includes a number of different categories, including household linens, bathroom textile products, bed sheets and baby blankets, beach linens, leisure and travel items, home dcor products, glass and crystal, silverware, and furniture.
Audras tells China Business Weekly that Hermes plans to introduce its "Pippa" collection, a folding furniture series, to China later this year.
"Upon introducing this line which includes wooden armchairs, desks and tables we plan to enlarge one of our five boutiques," she says, but declines to reveal the location of the store.
Hermes has two stores in Beijing, and one each in Shanghai, Guangzhou and Dalian. It will open its sixth boutique in Hangzhou in June, Audras says.
All Hermes products are sold through its boutiques, except for perfume, watches and tableware, which can be sold by select dealers in certain stores.
Audras says Hermes has a very wide range of products, and all of them are developing rapidly in China. She says the Art of Living items are less known in China than the silk and leather products, but that all of these product categories are important to Hermes.
"All departments have to gather together to represent the brand, its value and the story behind it."
She says that although the Art of Living line is growing rapidly in China, there is still room for the collection to grow.
Audras says that Hermes tries to bring the creativity, elegance and craftsmanship of its Art of Living line to its other 13 categories.
"When a customer looks around in our shops, they can always find something for themselves from this line," she says, adding that customers can also find something for friends and family.
Chaton Saconay, the departments artistic director, "the art of living is the art of surrounding oneself with beautiful and useful things."
"So when we create an item, we aim to make it last. We use the best materials, from textiles to wood, leather, glass and crystal," Audras says.
She adds that the company provides a wide range of products in different price brackets, so that customers can always find something affordable.
"You can see the quality materials and the elegant, simple designs. All this enhances ones lifestyle," Audras says, adding that the company will bring more products and designs to the Chinese market.
In order to strengthen communication between the company and its Chinese customers, Hermes launched a simplified Chinese version of its company magazine, "Hermes World", in March 2005. The magazine, first published in 1973, comes out twice a year in eight languages.
Hermes was established in 1837 as a maker of riding equipment, and the first Art of Living article was created in 1929. It was a crystal ashtray for automobiles. The department for the Art of Living products was created in 1974.
