China International Import Expo: Expo connects luxury goods with Chinese market

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There's been a rapid growth in demand for luxury goods in China, but foreign brands don't always find it easy to find their feet in this unfamiliar market. Our reporter, Wang Hui, explains how the international import expo is matching sellers and buyers to meet a growing appetite for high-end brands.

WANG HUI SHANGHAI "How much are the shoes?"

RIGGIE HUNG DESIGN DIRECTOR FOR GENAVANT "Thirty million yuan."

WANG HUI SHANGHAI "What makes them this price?"

RIGGIE HUNGDESIGN DIRECTOR OR GENAVANT "It has 10000 diamonds."

This pair of diamond shoes has made its debut at the international import expo. Other shoes in this newly launched store are tagged about 30-thousand US dollars and above. But the designer is optimistic about the potential for sales in China.

RIGGIE HUNG DESIGN DIRECTOR FOR GENAVANT "We are confident about the market. We are expecting big growth of luxury goods in the Chinese market."

According to Mckinsey's Report on China's Luxury Goods in 2017, the world's luxury goods market will climb to nearly 400-billion dollars in 2025, and Chinese sales will account for nearly half of that. Chinese customer's spending on luxury goods is expected to be double what it was in 2016.

However, unfamiliarity and the high cost makes it hard for foreign luxury brands to explore the strange Chinese market. The international import expo is bridging those brands and buyers. A Chinese jewelry company is representing 15 foreign jewelry brands in China, and has gained opportunities through this event.

SHEN KAI, GENERAL MANAGER MATRO INTERNATIONAL JEWELRY GLOBAL PURCHASING "We have seen many good retailers nationwide in the past week. Through the expo, we had effective talks with them. Some of them are quite interested in the brands we represent, and we intend to sign deals."

Mckinsey's report also points out the growth of luxury goods sold online. It's another important channel for those fancy goods to reach out Chinese customers.

WANG HUI SHANGHAI "Because of the remarkable potential in the Chinese market, some of China's major online stores have created dedicated areas for luxury goods. Take this one for example, you can easily find popular brands, including Burberry, Versace and La Mer. It carries 80 brands, and a wide range of items, such as bags, clothing and make up."

The expo has also attracted many online store buyers like Liu Peng seeking more potential partners.

LIU PENG, GENERAL MANAGER TMALL IMPORT & EXPORT "The team members of T-mall and T-mall International are here. They will have face-to-face in depth communication with the exhibitors. They will introduce China's e-commerce, online and off-line retail sales in China. It will be a big help for us to bring these brands to China."

Liu says luxury goods are only aimed at a small percentage of China's huge population, but because of China's consumption upgrade and increasing incomes, his company expects a rapid growth in this area. The huge opportunity is definitely attractive for both foreign sellers and Chinese buyers. Wang Hui, CGTN, Shanghai.