The size of China’s luxury boom is absolutely incredible. Here are some facts based on a UBS report:
- Last year emerging Asia accounted for around 50% of global luxury sales, most of which came from China. The Chinese probably spent more on luxury than the Americans and Europeans combined.
- Emerging Asia accounted for 60% of luxury growth.
- Tourists from emerging Asia account for half of luxury sales in Europe and 15% of sales in the U.S. Most of these tourists came from China — over 50 million of them last year.
Thus luxury is another industry that is screwed if China crashes. Happily UBS’s Eva Quiroga says there are no signs of a slowdown. For instance:
- Top European luxury companies reported around 41% year over year growth in emerging Asia for the third quarter
- Watch exports to China were up 47% in September
- Hong Kong malls reported booming traffic during the Golden Week holiday
- China’s millionaire and billionaire population is soaring
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