(Shanghai, 2 July 2008) Shanghai-based Hurun Research Institute, best-known for its annual China Rich List, has released the “Hurun Luxury Living Index” for the second year.
2008 Hurun Luxury Living Index
Average price increase of 12.6% on luxury goods
2 July 2008, Shanghai
l Cost of luxury goods in China rises 12.6%, nearly twice as fast as the cost of everyday consumer products
l Luxury property prices grow fastest with year on year increase of 29.8 %
l Demand for luxury goods is outpacing demand for everyday consumables
Shanghai, 2 July 2008. Shanghai-based Hurun Research Institute, best-known for its annual China Rich List, has released the “Hurun Luxury Living Index” for the second year.
The Hurun Index is based on comparing the retail price changes of a basket of 47 luxury products from 1 June 2007 to 1 June 2008. The cost of luxury goods tracked rose 12.6%, 80% higher than China’s Consumer Price Index (CPI) over the same time period of 6.9%. Demand for luxury goods is outpacing demand for everyday consumables.
Property grew fastest, with an average increase of 29.8%. A 600sqm golf villa in Nanjing, for example, soared 75% to RMB 21 million. Private club memberships rose by an average of 14.3%, led by a golf club membership at Shenzhen-based Mission Hills rising by 48.7%. A Patek Philippe watch increased in price by 19.6%, despite a 4.7% decrease in the value of the Euro. The price of a bottle of Richard Hennessy cognac rose by 53.9% and a bottle of Moutai 30 Years, China’s best-known baijiu, by 25.2%. The cost of reading an executive MBA at Cheung Kong Graduate School of Business grew by 20.7% and was the highest performer in the education category.
Cars and yachts were flattest, growing an average of only 1%, whilst international travel became cheaper for rich Chinese, primarily due to the US dollar falling by 10.1% to the Chinese yuan. Likewise educating the second generation overseas has become cheaper due to favourable exchange rate movements for Chinese.
Rupert Hoogewerf, publisher of the Hurun Report, states, “The combination of China’s wealthy getting richer, their predisposition with gift giving and a limited supply of many of these luxury products has resulted in rising prices.”
There were 800,000 individuals in China with personal wealth of more than US$1 million, led by 250 individuals with US$1 billion, according to an October 2007 Hurun Research report.
Passion investments also were on the rise. 36% of Chinese millionaires like collecting contemporary art, according to a Hurun January 2008 research report, followed by watches (34%), antiques (16%) and cars (14%).
The Hurun “2008 China Luxury Living Index” is based on the retail price change between 1 June 2007 and 1 June 2008 of a basket of 47 luxury goods, including property, cars, watches, jewellery, drinks, education, private clubs and travel.
2008 Hurun Luxury Living Index
Retail Price RMB
Automobiles and Yachts
Rolls-Royce Phantom EWB
BMW Z4 3.0si
Ferretti Yacht 630
Watches & Jewelry
Patek Philippe Nautilus (5712/1A)
Rolex Oyster Perpetual Datejust (116233)
Buben & Zōrweg (Time Mover Evolution 4)
Cartier Love bracelet
Montblanc fountain pen (Meisterstueck 149)
Swarovski necklace (660165)
Accessories & Skin Care
Louis Vuitton Speedy Bag
Chanel A01112 Bag
Hermes 90cm scarf
Vertu Signature Series
Lancôme Secret de la Vie 50ml
Property and Interiors
Shanghai Shimao Sheshan Villa (750㎡)
Shanghai Tomson Golf Villa (417㎡)
Zhongshan International Golf Villa (600㎡), Nanjing
Mission Hills In Residence (203㎡), Shenzhen
Beijing Cathay View Courtyard Residences (347㎡)
Beijing Ligong Villa (780㎡)
Davinci Leather Double Sofa
Steinway Concert Grand D Piano
Drinks & Smokes
Royal Salute 21 Years Old
Chivas 18 Years Old
Johnnie Walker Blue Label
Moutai 30 Years
Pu'er Tea aged for 30 years
Davidoff Cigar No.2, 1 box
Panda Cigarettes, 1 packet
Mission Hills Golf Club Diamond Membership, Shenzhen
Sheshan Golf Club Membership, Shanghai
Chang'an Club Membership, Shanghai
Fuchun Resort Golf Membership, Hangzhou
Tsinghua University EMBA
Cheung Kong Graduate School of Business EMBA
Harvard University Masters degree
Private Jet 800XP Rental fee per hour
Lijiang Banyan Tree (Deluxe Pool Villa) three nights
Peninsula Hong Kong (Superior Suite) three nights
Shanghai Pudong Shangri-La one night
· Retail prices based on 1 June 2008, compared with those of 1 June 2007.
About Hurun Report Inc.
Nobody Knows China’s Rich Better!
Established as a research unit in 1999 by British accountant Rupert Hoogewerf, Hurun Report Inc. has grown into a leading research house, media and lifestyle investments business based in Shanghai, China, best-known for its rankings of the richest people in China, India and the rest of the world.
Hurun Report Inc. has four divisions: Hurun Research Institute; Hurun Media; Hurun Conferences and Training, an active events division targeting entrepreneurs and high net worth individuals; and Hurun Lifestyle and Investments, with investments in education, interior design, horses, bespoke tailoring, media and retail.
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