Tag Archives: wealth

China Now World’s Fastest-Growing Diamond Market

Country Should Overtake Japan As Second Largest Diamond Market By Sales Volume Within The Year

Diamonds are a "must have" for China's growing luxury consumer class

Diamonds are a "must have" for China's growing luxury consumer class

Falling demand for luxury products of all shades has vaulted China to the top of many lists this year, as demand in developed markets has fallen for everything from luxury cars to five-star hotels. With China’s massive population and growing middle class, even gradual growth in demand can mean a great deal for luxury brands, so diamond producers can continue to be optimistic about the potential for their products in China — soon to be the world’s second largest diamond market by sales, if the projections of Freddy Hanard, chief executive officer of the Antwerp World Diamond Centre, are correct.

As the Financial Times writes today, Hanard predicts that diamond sales in China should continue the double-digit growth they saw in the first half of the year to continue throughout the second, and says that sales could possibly double in 2010. As the thirst for luxury products continues to spread in China’s second- and third-tier cities, and wealthier Chinese maintain their desire to diversify luxury and high-value holdings — something that we have seen in recent years as they’ve increasingly purchased luxury cars, gold, rare watches and jewelry, fine wine, contemporary art from China and elsewhere, and real estate — diamonds will probably remain strongly in demand according to all indications.

“China is the world’s fastest growing diamond market. And it can go very fast. It is still discovering diamonds,” said Mr Hanard.

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DeBeers Wooing Safe-Haven Investors – FT

Stock Fluctuations Lead Investors To Continue Searching For Diversity: Gold, Diamonds, Art, And Wine

Diamond and gold producers and contemporary art and wine auction houses are increasingly targeting Chinese investors and sovereign wealth funds

Diamond and gold producers and contemporary art and wine auction houses are increasingly targeting Chinese investors and sovereign wealth funds

Today’s Financial Times has a feature on investors who are turning to traditional hedges against stock market turbulence, and the way major diamond producers like DeBeers are ratcheting up their marketing and outreach efforts to get these people’s attention. Although diamonds fell mainly out of favor in recent years in many developed countries due to their sometimes controversial nature, diamond consortia have seen their fortunes turn around rapidly as they increased their foothold in emerging markets like Russia and China.

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Chinese Automakers Developing “Luxury With Chinese Characteristics”, Adapting From Porsche, BMW

Formerly Budget-Focused Brands Like Geely Shifting To Lucrative High-End Consumer Segment

The Chinese middle class is an important and growing consumer segment, and Chinese domestic brands are increasingly relying on this group's future purchasing power to drive global growth

The Chinese middle class is an important and growing consumer segment, and Chinese domestic brands are increasingly relying on this group's future purchasing power to drive global growth

The Wall Street Journal has a great profile today about Chinese auto brands that have shifted 180 degrees in the last few years, changing their target market from the younger, budget-conscious first-time car buyer to wealthier buyers who may already own one or more vehicles. This represents a very significant change in tactic on the part of Chinese automakers, who until recently had all but given up on this consumer bracket, apparently convinced that it would be impossible to compete with foreign luxury carmakers like Mercedes and BMW, two brands that have made commanding inroads in the China market.

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The Pearl River Delta Rises On A Tide Of Art Developments

The Influential Trio Of Hong Kong, Shenzhen, And Guangzhou Roar To Life For Events Like The Guangzhou Triennial

ART HK 09 takes place from May 14-17

ART HK 09 takes place from May 14-17

Art collectors and lovers are looking to Hong Kong to become Greater China’s devoted art epicenter. The region’s already-enacted duty law reforms, smooth business culture, and unique blend of Asian and Western culture have made it, and continue to make it, the world’s meeting ground. In the arts, this is no exception. Taking place in the heart of China’s wealth factory, the Pearl River Delta of Hong Kong, Shenzhen and Guangzhou — where the Mainland’s first experiments with capitalism took place in the late 1970s — annual events like the Guangzhou Biennial and the upcoming Hong Kong Art Fair (ART HK 09) are big draws for China’s emerging art consumer, the wealthy, investment-savvy “New Chinese Collector.”

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The Power Of Jewelry In The Chinese Market

Buying Trends Indicate Wealthy Chinese Looking For Long-Term Value, Asset Classes That Outpace Inflation

China is a huge and growing market for Sotheby's and other auction houses

China is a huge and growing market for Sotheby's and other auction houses

JCK looks back at the recent Sotheby’s jewelry auction that took place in Hong Kong, reflecting that the runaway success of luxury goods classes like jewelry/diamonds at that auction shows that Chinese buyers — who were the overwhelming majority in this instance — are continuing to invest in assets that will hold sustainable value. Seeing how these same buyers were more interested in diamonds than Chinese jadeite — which does not have as sophisticated resale markets — it seems pretty obvious that wealthy Mainland Chinese are supplanting the historical role of Hong Kong Chinese as mass buyers of luxury asset classes. This carries over in all classes, recently, from fine wines and watches to automobiles and contemporary Chinese artwork.

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New Report Tallies Up China’s Super-Rich

Millions Of Mainlanders Willing, Able To Spend On Travel, Luxury

Hong Hao, Money Front, 2005 © Hong Hao

Hong Hao, Money Front, 2005 © Hong Hao

The Shanghai Daily has a story today findings by the Hurun Report (a sort of Chinese Robb Report) on the growing number of millionaires in China, noting that the most recent tally has exceeded the expectations of some China watchers:

The mainland is home to about 825,000 people who are worth more than 10 million yuan (US $1.5 million) and at least 51,000 who are worth more than 100 million yuan, the Hurun Report said, the first time it calculated those figures.

The number of China’s super-rich “is beyond my expectation, and probably that of most of foreign people,” said Hurun Chairman Rupert Hoogewerf. “The rapid growth of the number of rich people in China manifested itself in the way the Chinese economy has kept a steady pace in recent years, because of surging real estate and stock markets.”

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