Gift-Giving Down Further 5%, Totalling 30% in Two Years
Growth in overseas travel drives growth in travel retail
Hurun Report releases Chinese Luxury Consumer Survey 2015 and Hurun Best of the Best Awards 2015
l Spending on gift-giving by Chinese luxury consumers down a further 5%, totalling 30% over two years. Consumer electronics, led by Apple, was the gift of choice, overtaking LV and last year’s Number One Hermes, which dropped down to seventh. Moutai shoots back into Top 10 after two year ‘holiday’. Red wine had a poor year, dropping down to third place in the preferred gift. Watches rose to second place, although especially for watches worth less than CNY 20,000. Overall spending crept back up to the levels of two years ago.
l The Hurun China Business Confidence Index, an index measuring the confidence in the economy going forward two years, rose for the second consecutive year: 3 out of 10 are highly confident in the economy going forward.
l Travel. Chinese luxury consumers continue to be extremely busy, away on business trips for 8 days a month on average, whilst super rich are away for 11 days a month. 6.4% away for more than 20 days a month. Despite this, they take 8 and 12 days of holiday respectively, one more than last year. Chinese New Year is preferred time to travel, followed by October Golden Week and the summer holidays. The Peninsula Hotel replaced the Shangri-La as China’s preferred hotel brand. The Mandarin Oriental improved the fastest, rising to second place.
l Collecting: Chinese traditional furniture and classic cars broke into the Top 10 collectables for the first time, whilst traditional Chinese ink painting and watches continued to lead the way in first and second place.
l Luxury travel destinations: Australia keeps hold of top slot, followed by France. Maldives shoots into third place. UK back into the Top 10.
l Hurun Happiness Index. Overall very happy, although slightly down on last year to 7.8 points out of 10. Work satisfaction lower than private life satisfaction. Super rich score higher on Happiness Index.
l Health: 24% regularly use a health advisor, 19% a personal trainer, 17% a nutritionist and 8% a fengshui expert,
l Jogging was the fastest-growing sport, rising to third place behind golf and swimming.
l 20% of super-rich plan to use private jets in next three years.
l UK continues as destination of choice to educate children at high school level, slightly ahead of the US.
l Investments. Private equity was fastest growing investment. For super rich Chinese (with wealth of CNY 100 million) equities overtook real estate as the preferred personal investment, whilst for Chinese millionaires (defined as having CNY 10 million), it was real estate.
(29 January 2015, Shanghai) The Hurun Research Institute today released the Hurun Best of the Best Awards 2015, based on the results of the Hurun Report Chinese Luxury Consumer Survey 2015. This is the eleventh consecutive year Hurun Research has revealed the brand preferences, consumption habits and lifestyle trends of China’s wealthiest individuals. Widely regarded as an ISO9000 for China’s luxury sector, the CLCS has become a benchmark for the luxury sector.
Hurun Report Chairman and Chief Researcher Rupert Hoogewerf said, “The government’s crackdown on luxury gifting continues to have its effect, with luxury gifting down a further 5% year on year, taking it to 30% over two years. Travel retail continues to change the dynamics of luxury in China, with 7 out of 10 luxury goods bought by Chinese now being bought overseas.”
This press release is an executive summary of the Chinese press release. For the full press release, please refer to the Chinese-language version on the www.hurun.net website.
Gifting
The amount spent on gifting by China’s richest continued to drop for the second year running, down a further 5% on last year’s 15%. Apple has shot up to become the preferred brand for gifting by China’s richest, followed by LV. Hermès, last year’s number one, appeared to have become a victim of its own success, dropping down six places to seventh. Gucci continued its impressive rise in the gifting market. Moutai bounced back into the Top 10 for the first time in three years, and becoming the only Chinese brand in the Top 10. Burberry and Prada dropped out of the Top 10.
Best Brand for Gifting by Men Best Brand for Gifting by Women
Brand / % of respondents / Brand / % of respondents1↑ / Apple / 20.3% / 1↑ / Apple / 18.9%
2↑ / LV / 13.4% / 2 - / Chanel / 13.2%
3↑ / Gucci / 6.8% / 3↓ / LV / 10.2%
4 - / Chanel / 5.5% / 4↑ / Dior / 5.1%
5↑ / Montblanc / 4.8% / 5↓ / Hermes / 4.1%
6 * / Moutai / 4.7% / 6↑ / Cartier / 3.7%
7↓ / Hermes / 3.8% / 7 * / Tiffany / 3.6%
8↓ / Cartier / 3.6% / 8↑ / Giorgio Armani / 3.5%
9 * / Bulgari / 3.5% / 9 * / Samsung / 3.4%
10 * / Samsung / 2.3% / 10↓ / Gucci / 1.7%
Source：《Hurun Best of the Best – Chinese Luxury Consumer Survey 2015》
↑ Ranking up ↓ Ranking down - no change * New to the Top 10
Watches bucked the trend to become the preferred gift for Chinese millionaires, overtaking red wine as a category, which had a bad year dropping down to third. Travel gift vouchers continued to show a strong rise for the third year running.
Gifting by category
Best Gifts for Men* / Best Gifts for Women* / Best Gifts for Elderly / Best Gifts for Children1 / Watches / 1 / Jewelry / 1 / Healthcare / 1 / Consumer electronics
2 / Consumer electronics / 2 / Fashion / 2 / Travel vouchers / 2 / Fashion
3 / Red wine / 3 / Consumer electronics / 3 / Medicine / 3 / Watches
4 / Imported spirits / 4 / Watches / 4 / Houses / 4 / Cars
5 / Smokes / 5 / Travel vouchers / 5 / Gift vouchers / 5 / Jewelry
3 / Premium baijiu / 6 / Healthcare
4 / Art / 7 / Gift cards
5 / Travel vouchers / 8 / Art
*RMB 20,000 or less
Source：《Hurun Best of the Best – Chinese Luxury Consumer Survey 2015》
The Hurun Business Confidence Index noted that confidence in the Chinese economy has risen for the second continuous year - 3 out of 10 people are ‘extremely confident’ in the economy.
Source：《Best of the Best – Chinese Luxury Consumer Survey 2015》
Preferred International Luxury Travel Destination1 - / Australia
2 - / France
3 ↑ / Maldives
4 ↓ / Dubai
5 ↓ / Switzerland
6 * / Italy
7 ↓ / US
8 * / UK
9 ↓ / Japan
10 - / New Zealand
↑ ranked higher than last year ↓ ranked lower than last year * New entry this year
Awards
There are three categories of awards. The Best of the Best is for the overall winner of a category. The Star Performer is for the product / service with the best year on year performance. The Best New Arrival is for a product / service launched into China in the past 12 months that has shaken up the market.
Methodology
Between June and December 2014, the Hurun Research Institute, a wholly-owned subsidiary of Hurun Report Inc, surveyed 376 Mainland Chinese ‘millionaires’, defined as individuals with a personal wealth of RMB 10 million (equivalent to USD 1.6 million). Amongst them were 27 super-rich, defined as individuals with wealth of RMB 100 million (USD 16 million). Their average wealth was US$6.8 million; the age was 38 years (39 among the super-rich band); the ratio of men to women surveyed was 6:4. Respondents were from 40 cities, 63% coming from the first tier cities of Beijing, Shanghai, Shenzhen and Guangzhou. The Hurun Research Institute has carried out this survey now for 11 years running, surveying 5194 millionaires of which 12% were super rich, making this the largest and most authoritative survey of its kind in China.
Hurun Best of the Best Awards 2015
Jewelry & Watch & FashionBest Brand for Gifting by Men / Apple
Brand for Gifting by Men Star Performer / Gucci
Best Brand for Gifting by Women / Apple
Brand for Gifting by Women Star Performer / Tiffany & Co
Best Jewelry / Bulgari
Jewelry Star Performer / Tiffany & Co
Jewelry Star Performer / Chaumet
Jewelry Best New Arrival / Amulette de Cartier
Luxury Jewelry Best New Arrival / Chow Tai Fook [Reflections Of Siem]
Best Overall Watch / Patek Philippe
Overall Watch Star Performer / Jaeger-LeCoultre
Overall Watch Star Performer / Blancpain
Best Watch with High Complications / Patek Philippe
Watch with High Complications Star Performer / Breguet
Watch with High Complications Best New Arrival / Rotonde de Cartier Astrocalendaire Watch
Best Jewelry Watch / Cartier
Jewelry Watch Star Performer / Chopard
German Mechanical Clock Best New Arrival / Erwin Sattler
Best Jade / Cui Huang Ge
Jade Star Performer / Oriental Palace Jewelry
Best Luxury Writing Instrument / Montblanc
Best Fashion Label For Men / Hugo Boss
Fashion Label For Men Star Performer / Ermenegildo Zegna
Best Bespoke Menswear Housekeeper / Kevin Kelly
Bespoke Menswear Star Performer / De Jue Bespoke Tailor
Leather Fashion Star Performer / Jitrois
Best Fashion Label For Women / Chanel
Fashion Label For Women Star Performer / Burberry
ModernLuxuryFashionLabelBestNewArrival / Coach
Best Accessory for Men / Giorgio Armani
Accessory for Men Star Performer / Montblanc
Accessory for Men Star Performer / Dunhill
Accessory for Men Product Line Best New Arrival / Gucci Bright Diamante Men's Leather Briefcase
Best Accessory for Women / Chanel
Accessory for Women Star Performer / Louis Vuitton
Handcrafted Accessory for Women Best New Arrival / Powerland
Handmade Shoes Creative & Fashion Star Performer / JP
Skincare Best New Arrival / Carina Lau
Furniture & 3C
Best Luxury Furniture Experience Center / JSWB
Luxury Furniture Experience Center Star Performer / Louvre Furnishings
Oriental Originality Home Brand Best New Arrival / Accent Objects
Best Furniture / Armani/Casa
Furniture Star Performer / Baker
Hand Painted Wallpaper Star Performer / de Gournay
Best Mattress / Hästens
Best Kitchen Appliance / Miele
Kitchen Appliance Star Performer / Fisher & Paykel
Range Hoods Star Performer / Fotile Yunmofang
Best Luxury Bathroom / Kohler
Best Piano / Steinway & Sons
Best Camera / Canon
Best High-Tech Multi-Functional Electric Shaver / Philips
Best Coffee Experience Star Performer / Nespresso
Smartphone Best New Arrival / Huawei Mate7
Home Entertainment System Best New Arriva Best New Arrival / Bang & Olufsen Home Entertainment System
Audio Video System Best New Arrival / Steinway Lyngdorf
Cars
Best Luxury Car Brand / BMW
Luxury Car Brand Star Performer / Porsche
Luxury Car Brand Star Performer / Maserati
New Energy Car Best New Arrival / Denza
Best Super Luxury Executive Car / Rolls-Royce Phantom
Super Luxury Executive Car Best New Arrival / Mercedes-Maybach S600
Best Luxury Executive Car / Audi A8L
Luxury Executive Car Star Performer / Jaguar XJ
Best Executive Car / Mercedes-Benz E-Class
Executive Car Star Performer / Cadillac XTS
Executive Car Best New Arrival / Maserati Ghibli
Best Super Luxury Car for Self-Drive / Rolls-Royce Wraith
Best Supercar / Ferrari California T
Supercar Star Performer / Lamborghini Huracan
Super Luxury Sports Car Best New Arrival / F12berlinetta & FF Tailor-Made
Luxury Sports Car Best New Arrival / Ford Mustang
New Energy Auto Industry Star Performer / BMW i8
Best High Performance Sports Car / BMW M3
Best Luxury Cabriolet / Jaguar F-type
Super Luxury Sports Car Star Performer / Aston Martin DB9
Best Luxury SUV / BMW X5
Luxury SUV Star Performer / Porsche Macan
Best Luxury All-Terrain SUV / Jeep Grand Cherokee
Best Luxury MPV / Toyota Alphard
Luxury MPV Star Performer / Mercedes Benz Viano
Best Motor Sports Experience Circuit / Goldenport
Business Jets & Yachts
Best Business Jet Brand / Gulfstream
Best Ultra Long Range Business Jet / Dassault Falcon 7X
Ultra Long Range Business Jet Star Performer / Bombardier Global 6000
Ultra Long Range Business Jet Best New Arrival / Dassault Falcon 8X
Best Large Size Business Jet / Embraer Legacy 650
Midsize Business Jets Star Performer / Citation 560 XLS+
Best Light Single Engine Helicopter / Bell 505
Helicopter Best New Arrival / Airbus Helicopter EC175
Best Business Jet Operator / Deer Jet
Charter Service Corporation Best Performer / VistaJet
Best Business Jet Financier / Minsheng Financial Leasing
Business Jet Financier Star Performer Best New Arrival / Industrial Bank Financial Leasing
Best Luxury Yacht / Ferretti
Super Luxury Yacht Star Performer / Benetti
Luxury Yacht Star Performer / Azimut
Luxury Superyacht (Above 100 meters) Best New Arrival / Lurssen "Quantum Blue"
Drinks & Smokes
Best Premium Imported Spirits Brand / Hennessy