CHRIS Li was a little bit disappointed when she walked around a luxury exhibition at Shanghai International Convention Center last month.
The 24-year-old Shanghai lady expected to see "premium cars, yachts and jets," but didn't find any on display this time. The yacht and ship builders only brought blueprints which she was not interested in.
In fact, just like Li, many people go to such luxury events, which are held in Shanghai more frequently nowadays, simply as onlookers. They don't plan to buy anything. They are coming to experience a so-called "luxury lifestyle."
Jets, yacht and huge diamonds are the things they most eagerly want to see, as such products are not available in the department stores for "window shopping" yet.
Surprisingly, it seems that exhibitors were also not expecting too much to meet their target customers through this kind of exhibition as well.
"Regency Garden," a deluxe villa project in Pudong New Area, set up a palace-like booth with crystal chandeliers and marble pillars in the center of the exhibition hall, which attracted lots of visitors. However, people couldn't find any brochures detailing the project at the event.
"Interested customers were asked to call our sales department for further inquiries," said Li Jun, marketing officer of Shanghai Yahui Property Development Co Ltd, a member of the Hong Kong-based Hutchison Whampoa Property Group. "At this event, we focused on promoting our brand image and introducing a unique lifestyle. There's nothing to do with sales."
Philipp Zurcher, a member of the board of directors of Majestic, a Dubai-based company providing executive aviation services and luxury travel packages, said that their main intention to attend the exhibition was to meet more possible business partners rather than single customers.
"We cooperate with travel agencies, luxury hotels and golf courses both in Shanghai and Dubai, and we bring people to play golf in the two places with private jets," he explained.
According to him, a four-to-five-day luxury travel package like this would cost around US$180,000 to US$190,000. The company also provides services to help people buy and manage aircraft.
China's future private jet owners, however, probably did not show up this time. Although the event's organizer, London-based Shorex Ltd, insisted that entry to the event was by invitation only and among the guests were top management and decision makers of Shanghai's leading companies, successful entrepreneurs, celebrities and high net worth individuals, most visitors were seen trying free massages and manicures, smoking free cigars, sipping whisky and beverages, grabbing free magazines or eating McDonald's that they brought to the site.
"It's difficult to judge whether a person is rich or not by his looks," said Sheng Lei, founder of Top Marques Shanghai, an annual luxury exhibition which originated from Monaco. Sheng said what interests most of his customers in China "are the premium cars and yachts which are not available in China yet."
But actually, China is becoming the world's third largest consumer of high-end fashions, accessories and other luxury goods.
The Chinese luxury market currently generates more than US$2 billion in sales a year. It is expected to grow 20 percent annually until 2008 and then 10 percent annually until 2015, when sales are expected to exceed US$11.5 billion, according to Ernst & Young.
By 2010, China is expected to have 250 million consumers who can afford luxury products, nearly 17 times the present number. By 2015, Chinese consumers could be as influential as the Japanese and account for 29 percent of all global luxury purchases.
The fact that a population of 1.3 billion potential consumers with an average annual per capita income of 10,493 yuan (US$1,312) in the country's urban areas is able to create such a ripple in the world's luxury goods market reflects the hunger that Chinese consumers have for luxury goods.
Young entrepreneur Li Cheng, in his late twenties, drives a modified BMW X5, dresses in tailored suits from Armani, always changes his mobile phones to the latest model, and joins luxury recreation packages from time to time.
"What I care about is the quality of my life, not the price," he said. "Within my capabilities, I simply want to enjoy the best."
Chinese consumers now travel frequently and have buying habits similar to the Japanese, who began going abroad in large numbers in the 1980s.
The 24-year-old Shanghai lady expected to see "premium cars, yachts and jets," but didn't find any on display this time. The yacht and ship builders only brought blueprints which she was not interested in.
In fact, just like Li, many people go to such luxury events, which are held in Shanghai more frequently nowadays, simply as onlookers. They don't plan to buy anything. They are coming to experience a so-called "luxury lifestyle."
Jets, yacht and huge diamonds are the things they most eagerly want to see, as such products are not available in the department stores for "window shopping" yet.
Surprisingly, it seems that exhibitors were also not expecting too much to meet their target customers through this kind of exhibition as well.
"Regency Garden," a deluxe villa project in Pudong New Area, set up a palace-like booth with crystal chandeliers and marble pillars in the center of the exhibition hall, which attracted lots of visitors. However, people couldn't find any brochures detailing the project at the event.
"Interested customers were asked to call our sales department for further inquiries," said Li Jun, marketing officer of Shanghai Yahui Property Development Co Ltd, a member of the Hong Kong-based Hutchison Whampoa Property Group. "At this event, we focused on promoting our brand image and introducing a unique lifestyle. There's nothing to do with sales."
Philipp Zurcher, a member of the board of directors of Majestic, a Dubai-based company providing executive aviation services and luxury travel packages, said that their main intention to attend the exhibition was to meet more possible business partners rather than single customers.
"We cooperate with travel agencies, luxury hotels and golf courses both in Shanghai and Dubai, and we bring people to play golf in the two places with private jets," he explained.
According to him, a four-to-five-day luxury travel package like this would cost around US$180,000 to US$190,000. The company also provides services to help people buy and manage aircraft.
China's future private jet owners, however, probably did not show up this time. Although the event's organizer, London-based Shorex Ltd, insisted that entry to the event was by invitation only and among the guests were top management and decision makers of Shanghai's leading companies, successful entrepreneurs, celebrities and high net worth individuals, most visitors were seen trying free massages and manicures, smoking free cigars, sipping whisky and beverages, grabbing free magazines or eating McDonald's that they brought to the site.
"It's difficult to judge whether a person is rich or not by his looks," said Sheng Lei, founder of Top Marques Shanghai, an annual luxury exhibition which originated from Monaco. Sheng said what interests most of his customers in China "are the premium cars and yachts which are not available in China yet."
But actually, China is becoming the world's third largest consumer of high-end fashions, accessories and other luxury goods.
The Chinese luxury market currently generates more than US$2 billion in sales a year. It is expected to grow 20 percent annually until 2008 and then 10 percent annually until 2015, when sales are expected to exceed US$11.5 billion, according to Ernst & Young.
By 2010, China is expected to have 250 million consumers who can afford luxury products, nearly 17 times the present number. By 2015, Chinese consumers could be as influential as the Japanese and account for 29 percent of all global luxury purchases.
The fact that a population of 1.3 billion potential consumers with an average annual per capita income of 10,493 yuan (US$1,312) in the country's urban areas is able to create such a ripple in the world's luxury goods market reflects the hunger that Chinese consumers have for luxury goods.
Young entrepreneur Li Cheng, in his late twenties, drives a modified BMW X5, dresses in tailored suits from Armani, always changes his mobile phones to the latest model, and joins luxury recreation packages from time to time.
"What I care about is the quality of my life, not the price," he said. "Within my capabilities, I simply want to enjoy the best."
Chinese consumers now travel frequently and have buying habits similar to the Japanese, who began going abroad in large numbers in the 1980s.
