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 explains how the international import expo is matching sellers and buyers to meet a growing appetite for high-end brands.
"How much are the shoes?"
"Thirty million yuan," said Riggie Hung, the design director for Genavant.
"What makes them this price?"
"It has more than 10,000 diamonds."
This pair of diamond shoes made its debut at the international import expo.
Other shoes in this newly launched store are tagged at about 30,000 US dollars and above. But the designer, Riggie Hung, is optimistic about the potential for sales in China.
"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 US 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 costs make 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.
"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," said Shen Kai, the general manager of Metro International Jewelry Global Purchase Company.
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.
Because of the remarkable potential in the Chinese market, some of China's major online stores have created dedicated areas for luxury goods.
The expo has also attracted many online store buyers like Liu Peng seeking more potential partners. He is the General Manager of 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 offline retail sales in China. It will be a big help for us to bring these brands to China."
Liu said 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.