Chinese consumers have become a major force in many industries. So, for U.S. companies in many different fields, the Chinese market could be very attractive and one that plays a big role in their overall business strategy.
There are many things that can be very impactful for a U.S. company that has a business strategy that relies heavily on the Chinese market. This includes the trends that occur in this market. It also includes what legal matters and disputes come up for the business in relation to its operations in this market and how it acts when such matters arise. So, whatever industry it is in, when a U.S. company relies heavily on business in China, the quality of the legal guidance it seeks out regarding Chinese business law issues can be of great significance.
One industry that it appears that Chinese consumers are playing a very big role in these days is the luxury goods industry. This can be seen in a recent Bain & Co report.
The report made a forecast on what personal luxury goods revenue growth 2017 would see, overall, globally. It predicted that such revenues will be up 6 percent (using constant exchange rates). This is higher than what a previous forecast had predicted.
The report suggests that Chinese consumers are playing a role in this growth. The report indicated that luxury good purchases among Chinese consumers are up both in the home market and abroad. According to the report, in 2017, almost a third of the global luxury goods market consisted of Chinese shoppers. No other nationality made up this big of a portion of this market.
One wonders what sorts of trends will occur among Chinese consumers in upcoming years when it comes to luxury goods, and what impacts these trends will have on the global luxury goods market and on luxury goods companies based here in the United States.
Source: Reuters, “Chinese and millennial shoppers drive rebound in luxury goods sales: Bain,” Sarah White and Giulia Segreti, Oct. 25, 2017