Rebecca Marston Business reporter said that the new Chinese rich people are the potential customers. They are the large target group in luxury goods such as Chateau Lafite 1962, Chateau Latour 1970, BMW car, Louis Vutton and so on. Merril lynch Cap Gemini World Wealth report" at present China has a million Chinese millionairs or 31% more than in 2008 year. The age of them are between 15-39 years old". According to this report" China is expected to import one-third of the world's luxury goods by 2015". Therefore, China is a big market of luxury brand.
I think, in the past, China was a poor country. When Deng Xiao Ping changed the political systerm of country, he made the people had a good life. Due to,their people can do business by themselves and they have more and more freedom. Moreover, there were a lot of manpowers to produce goods exported to many countries in the world , there is not only a large country but also plenty of natural resoures. They made China richs and have a lot of new millionaires. So, they would like to buy luxury brand for showing off rich and enjoying their life.
Why the millionaires are between 15-39 years old? As I know, some of young millionaires have heritage from their parents, some of them very smart.
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Rebecca Marston Business reporter,BBC News 11 May,2011 last update at 23.03 GMT
Retrieved from http://www.bbc.co.uk/news/business-13284481
Tip
ReplyDeletethe gab between the prosperous and the poor in china is dramatically increase due to the growth of economy. If the prosperous continue buying a lot of luxury goods, it will contribute to increasing of inflation which is not good for domestic economy. The same amount of money can buy less food.
I thought that Tip said something very interesting in her response: "Moreover, there were a lot of manpowers to produce goods exported to many countries in the world, there is not only a large country but also plenty of natural resoures. They made China richs and have a lot of new millionaires" (¶ 3).
ReplyDeleteThis makes me wonder: China has always been large, heavily populated and rich in natural resources, so why was it's development so severely retarded for so long? It cannot have been lack of resources or people.
Tip has suggested what she thinks the problem was - the disastrously murderous policies of Mao and the communists who thought like him. But even before the communists took control, things were not going well. Why?
And I sometimes have a similar question about Thailand - given it's resources and people, why isn't Thailand a lot better developed in 2011 economically, socially and politically than it is? (Malaysia has done better economically, and now Vietnam is passing Thailand very quickly, perhaps Cambodia next. This seems to me to need an explanation - something has caused Thailand's growth in many areas to be slower than it could have been, and that has harmed the Thai people, just as China's hampered development until recently has meant that millions of CHinese people have needlessly suffered a lower quality of life.)
Hi P'Tip!
ReplyDeleteMany countries like to invest in China because the salary rate of worker is cheap so they can sell items which have low price. Many ownerships could sell a lot of their products and gain the profit, even though, it is not high margin per unit but they can sell more than 1 million products , for example. So I don't surprise that why chinese people become richer than in the past.
Hi P'Tip
ReplyDeleteI’m impressed with China that they can develop their country very fast. I hope that Chinese people don’t spend too much money for their luxury things that can cause the financial trouble for them in the future. However it’s overlap between richness and poorness can found in China. I think it’s just like Thailand. I agree with Peter that Thailand can’t develop country as fast as China or Vietnam, what happen with my country?
In my opinion the problem is not because of the lack of natural sauces because there are lots land that good for agriculture or fisheries. However we miss one thing, we need only a good political system, we need the clean and honest person who willing to work hard for people and don’t corruption but it seems to be this kind of politicians are extinct already. The political is pulling us down again. There are some politicians who have power to control everything that can bring them more power and money. That’s why Thailand can’t be the develop country in Asia.
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ReplyDeleteIn Year 1962, China is faced with agricultural depression. And executives from various countries to brainstorm ideas to solve the crisis occurs. Deng Xiaoping said that “It doesn't matter if a cat is black or white, so long as it catches mice.” His view is in the resurrection of the agricultural industry. People request the land for making a living and the result of the surveying also support this idea.
ReplyDeleteDuring that period. If the way of any benefit to the agriculture industry, please go that way. Therefore, guidelines should be based on the real situation. Not think or act the same as a fixed formula
Tip
ReplyDeleteIn my opinion China still has the big breach between poor and rich people. Moreover, according with your report China has in the present 1’000,000 Chinese millionaires as a result only .07% of the population. In addition seems that the middle class grows more slowly. Furthermore the Chinese millionaires invest abroad. It seems like they want to assure the education of their children. Another is they know that most of their wealth was gotten when the regulation was more freedom. Yet now they are afraid that the government wants to know about their assets or the government will change the rules and they can lose part of their fortune. Also the taxes that they pay for the luxury items are very high. So you can see many rich are buying in Hong Kong and other parts, also the real state increase in Hong Kong is a result of the wealthy people investing to avoid the rules in China. I hope with the education that the government is giving to the people, and the regulations in order for the people to have a fair wage and an atmosphere suitable of the workplace. The uneven distribution of wealth could be changed and let the middle class grow. Finally I think the new wealthy are young because the system economic change with their parents, who accumulated the wealth, that now the new generation are managing.
I had already read this article before Thip blogged it - the wine story opener caught my interest very effectively.
ReplyDeleteWhether I would do the same things, it's good to see people getting some money and having fun with it, and in doing so helping others. Rich people spending money on luxuries, or not so rich people spending for fun, is a good thing - it doesn't just boost their own enjoyment of life, it also boosts the economy, creating jobs, and value every where, and those are good things.
Which is why laws intended to stop people having fun are generally immoral - for example, laws that say night clubs have to close at 1:00 AM, or that alcohol cannot be sold between 2:00 and 5:00 PM.
ReplyDelete