Changing Dynamics Make China's Markets More Accessible

China's Middle Class Rising

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Any economist or businessman will tell you that to have a market you have to have both supply and demand, but up until recently the market for accessible luxury has been stifled by a complete lack of sufficient demand – a by product of having no extra cash to spend – for luxury items, but this is a dynamic that's quickly changing as China's middle class explodes onto the scene.

A few years ago, the concept of “accessible luxury” as a market mover in China was little more than a dot on the horizon. Today, the situation couldn’t be more different. Accessible luxury brands (and traditional luxury brands that have expanded into the accessible luxury sector) have seen significant growth marked by rapid and profitable retail expansion, increased e-commerce sales, a loyal following of new middle-class customers, and renewed interest and sales from older, wealthier “legacy” customers. Historically, the luxury segment in China has been dominated by established European labels selling premium and ultra-luxury products to well-heeled Chinese consumers." (Read More)

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