BEIJING, Aug. 19 (Xinhua) -- China's consumption upgrade is powering demand for luxury goods, China Daily reported Monday, citing several consulting firms.
The Chinese luxury goods market grew by 6 percent to surpass 110 billion euros (122 billion U.S. dollars) in 2018. About 48 percent of consumers were younger than 30, according to a report by Boston Consulting Group.
Luxury goods mainly include bags, shoes, clothes, jewelry, watches, and accessories. The average annual growth rate of the luxury goods market in China is expected to remain at 5 to 6 percent by 2025, the report said.
Consumption upgrading is increasing demand for luxury goods in China, said Kher Tean Chen, managing director and products industries lead for Accenture in China.
"About half of Chinese consumers prefer famous brands and they are more willing to pay a higher price for better quality, healthy or environmentally friendly design and optimized function," Chen said.
Young Chinese consumers, who have entered the job market and are seeing incomes rise, have shown a strong preference for commodities that can help them establish their identity in society, said Crystal Hao, a partner at Boston Consulting Group.
People in third and fourth-tier cities are also becoming new consumers as they have more access to luxury goods both through offline stores and e-commerce, according to George Ren, senior partner at consultancy Roland Berger.