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Top 2% of Chinese account for third of global luxury sales
CNBC ^ | Thursday, 17 Oct 2013 | Robert Frank

Posted on 10/19/2013 6:02:03 AM PDT by TigerLikesRooster

Top 2% of Chinese account for third of global luxury sales

Published: Thursday, 17 Oct 2013 | 11:37 AM ET

By: Robert Frank | CNBC Reporter and Editor

Is the luxury industry becoming too reliant on China?

A new report from A.T. Kearney finds that just 2 percent of China's population accounts for about a third of the world's luxury consumption—everything from cosmetics and private jets to jewelry, watches and handbags.

The report said that the country's importance to luxury is likely to grow in the next three to five years as China creates more wealthy consumers.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: china; economy; luxury

1 posted on 10/19/2013 6:02:03 AM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 10/19/2013 6:02:34 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster

That sounds astounding until you figure out how many people are in the top 2$ of China’s population.


3 posted on 10/19/2013 6:13:10 AM PDT by afraidfortherepublic
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To: afraidfortherepublic

It’s called wealth distribution. We only have the one percenter’s.


4 posted on 10/19/2013 6:19:27 AM PDT by DIRTYSECRET (urope. Why do they put up with this.)
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To: TigerLikesRooster

Some reason the barking-moonbats-for-hire aren’t protesting in the streets of China against the ‘Two Percenters?’

It’s not FAIR! *SMIRK*


5 posted on 10/19/2013 6:29:20 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: DIRTYSECRET

BAZINGA!!
good one...


6 posted on 10/19/2013 6:32:54 AM PDT by C. Edmund Wright (Tokyo Rove is more than a name, it's a GREAT WEBSITE)
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To: TigerLikesRooster

By definition, luxury goods should only be bought by the very richest. In any event, 2% of the Chinese population equals about 1/3 of 1% of the world’s population. Since they are buying 1/3 of all the luxury goods, the other 5/6ths are buying the rest, that means that about 1% of the world’s population are buying all of the luxury goods (not accounting for the middle class guy who buys one luxury good, such as a Rolex watch). Sounds about right.

These luxury goods purchasers do several good things. They provide decent work for yacht builders and watch craftsmen and Mercedes-Benz mechanics, they send their money to places like the U.S., and they pay big $$$ for the first technological goodies that the rest of us get at 10% of what they paid a few years later (e.g. large plasma and LCD TVs). Also, they provide capital for real growth and have a vested interest in having the investment work, even though they can’t take it with them.


7 posted on 10/19/2013 6:44:15 AM PDT by Dr. Sivana (There's no salvation in politics.)
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To: Dr. Sivana

Party pooper!

You had to go and spoil a good rant against the “Evil Rich” by injecting facts & reality into the argument!


8 posted on 10/19/2013 6:59:48 AM PDT by BwanaNdege (Those who make peaceful revolution impossible will make violent revolution inevitable. J.F. Kennedy)
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To: Diana in Wisconsin

Keep buying, so workers still have jobs making the luxury goods.


9 posted on 10/19/2013 7:35:43 AM PDT by WildWeasel
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To: TigerLikesRooster

And all of them are buying real estate on the San Fran Peninsula to avoid confiscatory wealth taxes being considered by Beijing. Average house price in a number of our towns has now gone past $2 million.


10 posted on 10/19/2013 8:18:09 AM PDT by ProtectOurFreedom
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To: WildWeasel

I don’t buy Made in China stuff. Yes, I shop at Wal-Mart, but I gladly share my receipts as proof. 61,000+ American distributors; why shop anywhere else? ;)


11 posted on 10/19/2013 8:32:51 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Dr. Sivana
These luxury goods purchasers do several good things. They provide decent work for yacht builders and watch craftsmen and Mercedes-Benz mechanics, they send their money to places like the U.S., and they pay big $$$ for the first technological goodies that the rest of us get at 10% of what they paid a few years later (e.g. large plasma and LCD TVs). Also, they provide capital for real growth and have a vested interest in having the investment work, even though they can’t take it with them.

Many of the rich are bored sill by what they have they already possess so they go out and buy more and 90% of it is ridiculous like $10000 handbags and three closets full of shoes. Instead of catering to them and kissing their arses we need production oriented toward what middle class consumers need but that middle class needs more money to buy these items. We need to produce it here. We need a larger middle class like we did 40 years ago and smaller wealthy class

The Democrats cater to this desire thus are winning. Their solution for how to get there by taxes is a lie and BS. I wish I knew a good way to get there but it was better when America had a more even distribution of wealth

Catering to the degenerate consumerist desires of the rich is what slaves and serfs do in feudal times and is not appropriate for a free country with the Constitution we have

12 posted on 10/19/2013 10:36:14 AM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: Diana in Wisconsin

I shop at Walmart and there maybe 4 times a month but I despise their business model. While the WalMart defenders here at FR....I get the impression most never shop there


13 posted on 10/19/2013 10:40:01 AM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: TigerLikesRooster

Liberals account for more than 1/2 of all luxury purchases.


14 posted on 10/19/2013 10:42:02 AM PDT by First_Salute (May God save our democratic-republican government, from a government by judiciary.)
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To: dennisw

I live in the boonies; my shopping choices are limited, unless I choose to drive 15-20 miles.

I tend to ignore those that feel the need to critique my life; I’d put my life up against any of them as to who ‘lives more lightly.’

As an added bonus, I’m CHEAP and easily entertained by everyday life. ;)

(See my tagline...)


15 posted on 10/19/2013 10:50:59 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin

Many products that claim “Made U.S.A.” are simply assembled here to avoid the law. The parts are made in China. Companies are rarely prosecuted for violations of the law so they will even simply package the product here and label it as made in the USA. The law basically allows them to claim made in the USA if final assembly is done here.


16 posted on 10/19/2013 10:58:44 AM PDT by CodeToad (Liberals are bloodsucking ticks. We need to light the matchstick to burn them off. -786 +969)
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To: Diana in Wisconsin

I am a fellow cheapskate. I have outside garden, fruit trees etc stuff to tend to each day. I hope to greatly streamline this but this slave work gives me joy. Best corn on cob I ever had was in your state. I’ll be over next hunting season go tell your husband :)

I use and other people here get wood chips dumped on property by the tree trimmers (free stuff) And mulch like carzy with it. Humus is where it is at also a little NPK. By the way Walmart here has the cheapest 10-10-10 which I do buy but for some garden items. But the fruit trees get a more expensive fertilizer that has minors like iron magnesium etc

Check out biochar for some interesting humus creation and creation of better soil. I am in a suburban situation so I cannot make biochar.


17 posted on 10/19/2013 11:03:52 AM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: dennisw

Thanks for the tip! I used granular 10-18-10 (New Lawn Starter) on my fruit trees this spring, as they were leafing out. I had TONS of cherries and peaches. My apple trees still aren’t all that mature, so only a few apples - but it was better than nothing!

(Thread officially hijacked, LOL!)


18 posted on 10/19/2013 11:20:37 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: CodeToad

I only buy basics. I’m confident my TP is Made In Wisconsin, thanks to Kimberly-Clark and all the paper mills we have. ;)

But, I see what you’re saying...

As for clothing, I shop 2nd hand for the most part. If it’s made overseas, at least I’m keeping it out of the landfill or out of the hands of a HOARDER for a bit longer. :)

I sleep well at night knowing little of my $ is going to the Chi-Coms. But, as far as my Tax Dollars? Can’t do much about the Commie hands they’re falling into these days - but the tide is turning. :)


19 posted on 10/19/2013 11:26:30 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin

You might not need iron and other trace elements in a fertilizer where your are so you can get buy with less expensive fertilizer. But the slow release nitrogen fertilizers mimic animal manures

But for sure on your younger trees — non fruiting— mulching to the drip line helps root development thus faster tree development


20 posted on 10/19/2013 11:49:57 AM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: TigerLikesRooster

China embraces capitalism.

Like to see our government embrace it again.


21 posted on 10/19/2013 11:53:22 AM PDT by dfwgator
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To: dennisw

I’m sure you don’t know this, but I manage a Garden Center, and prior to that was their Nursery Manager for eight years.

Been ‘In The Biz’ going on 17 years; I’ve prety much seen it all, but surprisingly, I DO learn something ‘new’ every once in a awhile! :)


22 posted on 10/19/2013 12:33:08 PM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: ProtectOurFreedom
And all of them are buying real estate on the San Fran Peninsula to avoid confiscatory wealth taxes being considered by Beijing.

It's spilling over from the peninsula into SF. We're remodeling my wife's mother's home in SF, thinking of selling it as she can no longer live there by herself. Contractor's tell us homes in the area are going $200G over asking without being fixed, with multiple bids. More than 10 percent increases each year, a lot driven by Chinese buyers. Crazy.

23 posted on 10/19/2013 12:51:47 PM PDT by roadcat
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To: dennisw

I would never have the temerity to judge anyone’s like’s or purchases as “ridiculous.” If you can afford a $10,000 plus bag, that’s wonderful! This means that the master leather artisan in France and Italy may still practice a craft with a market.

Everyone has “simple” pleasures, that do not necessarily come without a steep price.


24 posted on 10/19/2013 12:53:07 PM PDT by Katya (Homo Nosce Te Ipsum)
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To: Katya

I will most definitely judge those purchases


25 posted on 10/19/2013 1:14:56 PM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: Diana in Wisconsin

I know you are with well known seed company/
Banana are a grass...not a fruit tree. They start new roots going into the mulch. A bit like you can take a small tomato plant and replant it deep...it starts new roots from what was just stalk.

Older fruit trees not as important. But on a younger ones you don’t want grass near the trunk because grass will compete with young roots. Then step two is to mulch 4” deep or thicker but not right by the trunk because it might induce rot. Roots love the humus they get as the mulch breaks down so your younger tree gets off to a better start. Heavy mulch for first three years or until you get good fruit production

All the above from my experience

Where I am some guys feed mature fruit trees straight K 0-0-50 fertilizer after the fruit harvest. The trees only get this. I don’t know if northern fruit trees like this.

BTW I know a guy in a rural area who was able to get free wood chip delivered by crews trimming trees for utility lines. Might have been phone or electric. In your situation you could leave a lot of that in a large pile and you will have black compost at the bottom in a year or two. I cannot do wood chips piles in my situation but I mulch trees with free wood chips


26 posted on 10/19/2013 1:31:08 PM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: dennisw
Many of the rich are bored sill by what they have they already possess so they go out and buy more and 90% of it is ridiculous like $10000 handbags and three closets full of shoes.

Who said anything about kissing their backsides? Acknowledging some of the good side effects of their wealth is not the same thing as kissing their backsides. I would just say it is the nature of luxury goods to be owned by the elite few. Plenty of stuff is made for the middle class, and I'd prefer it be made here, or at least in a country that doesn't employ essentially slave labor, have missiles pointed at us, or make it a crime to be a practicing Christian. The problems caused by the uber-rich isn't that they buy too many expensive shoes, but that some of them use their money as a weapon (think George Soros), often without even having to put their own money at risk.

In any event, using percentages tells nothing about how many luxury products the wealthy own or buy. If the top 2% of Chinese own 1/3 of the world's luxury goods, and it turns out that it means that ONE guy in the top 2% owns one of only three luxury goods in the world. The problem would not be too many luxury goods.

The problems you describe have many, many causes, and I didn't mean to cover them all in my original post, though I agree with the general sentiment.
27 posted on 10/19/2013 3:22:28 PM PDT by Dr. Sivana (There's no salvation in politics.)
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To: Dr. Sivana

I basically agree with your post. I hope we sell tons of luxury goods to the Chinese. Just saying the luxury goods market here is catering to degenerate desires. Far better to have a larger middle class and a smaller number of plutocrats and wannabee plutocrats blowing money left and right on silly shit

My opinion is a larger middle class that is in stable marriages producing children is the bedrock of a more conservative America. When wealth distribution gets skewed too heavily upward the middle class does not have enough money for solid family formation. Obama/Democrats solution for this problem is not what I want


28 posted on 10/19/2013 4:24:52 PM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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