Luxury Consumer Price Index 2016

Source:胡润百富 Author:Pinkle IssueTime:2016-07-19

 

Luxury property, health and education drive Luxury CPI, up 5.1%

  Fastest Rise in 5 years

Luxury wines & spirits and luxury cars see prices drop

Luxury CPI is much higher than CPI at 1.9%, and double the CPI over the past decade

 

l  Luxury property market has recovered significantly. Shenzhen has seen the sharpest increase in the price, by 57%. Overseas property also has a great boost: on top of that lies Vancouver, Canada, by 28%. U.S. is also in an uptrend: San Francisco with 17.9% beat Los Angeles and Boston.

l  Top school tuition increased for tenth consecutive year, up 6.2%. The leading one is the EMBA program by Hu Pan University founded by Jack Ma. Its tuition for this year is US$55k, up 28.6% from US$ 43k last year. However, the tuition fees of other Chinese EMBA programs remain stable. The tuition fees of top schools in both US and UK are now US$52k per year, up 9.6% in the US and 2% in the UK. Shanghai YK Pao School and Beijing Harrow School tuition fees rose 4% to hit US$ 25k and US$ 40k, respectively.

l  Since the creation of Health as its own category three years ago, the prices of luxury healthcare has increased for three consecutive year with an increasing health awareness of high-net worth individuals. This year saw a 11.7% rise, led by a health check-up up 34%.

l  This year, luxury travel market has recovered the uptrend compared with the last two years, rose 5%. As of 10 June 2016, in the foreign exchange market, JPY appreciation of 22.8% ranks first, followed by USD up by 7.2%, HKD by 6.9%, EUR by 6.6%, AUD by 3.5% and SFR by 4.0%. But only GBP has depreciated, and that was even before Brexit.

l  Weddings, which enjoyed the highest increase last year, continues to grow by 5% this year. Celebrity effect plays a significant role affected the price.

l  After a strong of strategic price decreases last year, the overall prices of jewelry, watch, luxury accessories and cosmetic products have experienced an increment this year. A Hermes Birkin bag increased fastest, 28.6% year on year. Diamond prices rose again, up to 6%; Gold price bounced back 8.2%.

l  Prices of luxury liquor and tobacco and luxury cars are the only two categories which have declined for two consecutive years, by 0.2% and 1.3%, respectively. A case of 12 bottles of 1982 Laffite Rothschild reached US$50K, rose by 11.4%, ranks the top of the luxury wine in China. Porsche 911 bounce back, up 4.9%.

l  Leisure entertainment, after a 0.6% decline last year, rose 1% this year. Golf club prices are still down in the dumps: for example, the price of playing 18 holes of Golf in Kunming fell by 33.6%, less than US$300.

l  The overall of Luxury consumer price has increased 5.1%, after the first decrease last year, shooting up the fastest in 5 years, much higher than the level of CPI released by the Nation Bureau of Statistics (CPI June 2016, +1.9%). Over the last ten years, the Luxury CPI increased 75% which is more than twice time of the consumer price index.

l  Among 124 products, about 60% of them, 74 products have higher prices than last year, 26 of them have lower prices; the other 24 stay constant.

 

(19 July 2016, Shanghai) Hurun Research Institute today release the Luxury Consumer Price Index 2016. This is the tenth consecutive year Hurun Research Institute released the LCPI. The Luxury CPI is an alternative index, measuring the change over one year in the prices paid by luxury consumers for a basket of 124 luxury goods and services, up by 18 and separated under 11 broader categories including properties, health, education, travel, weddings, watches and jewelry, accessories and skincare, jets and yachts, leisure, high-end alcohol and tobacco, automobiles, comparing their market price this June to their market price last June.

 

Rupert Hoogewerf, Chairman and Chief Researcher of Hurun Report, said, “Luxury property, health and education drove up the Luxury Consumer Price Index this year, coupled with a decrease in the value of the Chinese Yuan against most of the major currencies.”

 

This is a brief translation of the original Chinese press release. Please refer to the Chinese press release for the full and complete press release.

 

Over the past year, the overall of 2016 Luxury Consumer Price Index (Luxury CPI) had an 5.1% increased, reached the peak among last 5 years, more higher than the level of CPI released by the Nation Bureau of Statistics (CPI June 2016, +1.9%).Over the last ten years, the Luxury CPI increased 75% which is more than twice time of the consumer price index.

 

Among of all categories, luxury property price has increased most reached 13% which is close to the gains of 2014 compared to last year 1.9% decline; followed by healthcare, which is increasing for three consecutive years, up 11.7% this year; top school education price has been in uptrend for one decade and increase from last year which reach 6.2%; this year, luxury travel market has recovered the uptrend compared with the last two years, rose 5%. Wedding market, which enjoyed the highest increase last year, has stably increased by 5% this year. Watch and Jewelry has overall increased 3.9% after a fall of 3.6% last year; luxury accessories and cosmetic products have increased 2.9% after a strategic reduction of 2.9% last year; Leisure entertainment has rose by 1% this year after 0.6% declined last year; jets and yachts has recovered 1% after a bigger declined by 10.5% last year; Prices of luxury liquor and tobacco and luxury cars are the only two categories which have declined for two consecutive years, by 0.2% and 1.3%, respectively.

 

Among 124 products, about 60% of them, 74 products have higher prices than last year, 26 of them have lower prices; the other 24 stay constant. There appended 18 new commodities over last year, including 8 oversea properties, 2 business jets and 2 luxury travel and etc.

 

Among of 124 commodities, 22% are imported. Comparing with the same period of last year, foreign exchange rate has been in various degree of increase, by 10 June 2016, in the foreign exchange market, JPY appreciation of 22.8% ranks first, followed by USD up by 7.2%, HKD by 6.9%, EUR by 6.6%, AUD by 3.5% and SFR by 4.0%. But only GBP has depreciated, one of reason might be the effect of Brexit. Till the final result of Brexit was published on 24 June, GBP was declined 4%.

 

The distribution of wealth in China

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According to Hurun Research Institute Wealth Report ending in May 2015, individuals with CNY 10 million among Mainland Chinese HNWIs number 1.21 million, an increase of 120,000 from the previous year, a growth rate of 11% that sets a record high. Individuals with CNY 100 million among the HNWIs group number 78,000, an increase of 11,000 that represents a 16% growth rate.( According to Hurun Wealth Report 2015)

 

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This year, Chinese gifting bounces back 15%. Watch and Electronic products were received the best gift by the consumers compared to last year. For the next two years , over 80% respondents are positive on the Chinese economy, but there are only 27% are ‘extremely confident’ in the economy, much lower than 35.8% of last year. This year, the richest are still under the great pressure with less holidays. Jogging is the most popular sports for Chinese super-rich. Non-smoker increased from 41% to 46%. 65% female refused to become smoker. Social network tends to become the main source of information. Wechat makes more people relying on digital media, which is especially obvious within under 30 year old respondents. ( According toChinese Luxury Consumer Survey and Hurun Best of the Best Awards 2016)

 

Generation Y Chinese Luxury Travelers Come of Age

China’s young luxury travelers go abroad every 3-4 months, mainly for leisure. They spend US$65,000 on tourism per year and US$34,000 on travel shopping. Compared with their last generation, new generation demand personalized luxury experiences, Wi-Fi, and next generation guest services on smart devices as standard. Young luxury travelers primarily receive information through official WeChat subscription accounts, mainly in WeChat Moments shares from friends and WeChat official accounts. ( According to The Chinese Luxury Traveler 2016)


 

Methodology:

The Luxury Consumer Price Index (LCPI) is an alternative index, measuring the relative changes of luxury consumer goods over a given year, general reflects the changes of the price level of consumer goods by the rich purchased. 2016 LCPI contains a basket of 124 luxury goods and services, appended 18 new commodities, separated under 11 broader categories including luxury, properties, health, education, travel, wedding, watches and jewelry, accessories and skincare, jets and yachts, leisure, high-end alcohol and tobacco, automobiles, comparing their market price this June to their market price last June. To make this list, the Hurun Research Institute was directly going to the survey site collection, such as stores, shopping malls, official website, etc. 1 USD = 6.5 RMB.

 

2016 Luxury Consumer Price Index

 



Price in CNY

Average%


Total


5.1%


Property


13.0%

Beijing Villa

Beijing Ligong Villa (1000 )

85,000,000

21.4%

Shanghai Villa

Shanghai Shimao Sheshan Villa (750)

56,250,000

22.3%

Shanghai Apartment

Shanghai Tomson Riviera (400)

68,000,000

6.5%

Shanghai Villa

Shanghai Binjiang (278)

21,684,000

16.4%

Shanghai Apartment

Shanghai Star River (500)

41,500,000

10.7%

Shenzhen Apartment

Shenzhen East Sea Garden Junhaoge (316)

25,912,000

57.0%

Hangzhou Villa

Hangzhou Green Town Taohuayuan Villa (700)

39,200,000

-2.0%

Chengdu Villa

Chengdu Luxehill International Heizuan   Villa (590)

18,850,000

-0.6%

Nanjing Apartment

Nanjing Feinikesi Flat (184)

6,440,000

16.7%

Hainan Apartment

Hainan Yajule Villa (145)

3,190,000

-12.0%

Hong Kong Apartment

Victoria Peak of Hongkong Yiyuan (3000)

84,460,000

22.9%

London Apartment

London Apartment (150)

45,000,000

0.0%

New York Apartment

New York Apartment (150)

36,000,000

9.4%

Los Angeles Apartment

Los Angeles Apartment (150)

15,000,000

11.7%

San Francisco Apartment

San Francisco Apartment (150)

10,455,000

17.9%

Boston Apartment

Boston Apartment (150)

4,565,000

10.8%

Vancouver Apartment

Vancouver Apartment (150)

13,118,000

28.0%

Sydney Apartment

Sydney Apartment (150)

24,500,000

14.8%

Melbourne Apartment

Melbourne Apartment (150)

5,600,000

11.9%

Singapore Apartment

Singapore Apartment (150)

17,270,000

4.3%


Health


11.7%

Checkup

Ciming Checkup

7,514

34.0%

Plastic surgery

L’Avion Anti-aging Placenta Extract Tour   to Switzerland

428,000

0.0%

Plastic surgery

Huamei Medical Beauty Hospital (double-fold   eyelids)

20,000

0.0%

Plastic surgery

Huamei Medical Beauty Hospital(Collagen injections   of the nose)

13,800

28.0%

Housekeeping

Filipino -- Shanghai Boni Housekeeping 1 year

86,400

20.0%

Housekeeping

Meiyu House-Keeping Services 1 year

300,000

0.0%

Sercurity Guard

Bojing Security Guard ( A Class, Male) 1 year

420,000

0.0%


Education


6.2%

Domestic Education

YK Pao School Primary School 1 Year   Tuition Fee

156,000

4.0%

Domestic Education

Beijing Harrow School 1 Year Tuition Fee

268,800

4.0%

Domestic Education

Hong Kong Harrow School 1 Year Tuition Fee

157,590

12.3%

EMBA

HuPan Business School 3 Year Course

360,000

28.6%

EMBA

Tsinghua University EMBA

560,000

0.0%

EMBA

CKGSB EMBA

698,000

1.2%

EMBA

CEIBS EMBA

608,000

3.2%

CEO Program

CKGSB CEO

990,000

0.0%

International Education

Wycombe Abbey School, UK

343,600

2.0%

International Education

Eton Summer Course, UK

64,800

3.2%

International Education

Philips Academy Andover, US

341,700

9.6%


Travel


5.0%

Jet Charter

Sanya-Beijing Return 8 People Charter Business Jet
   (Hawker Private Jet 900XP)

351,000

-0.1%

Jet Charter

Beijing-Los Angeles Return 15 People Charter   Business Jet (Gulfstream G550)

2,500,000

0.2%

Air Fare

Beijing-Paris Return 2 People Air France First Class   Ticket

180,000

13.8%

Air Fare

Singapore Airlines First Class Ticket (Beijing-Singapore   5 People)

120,000

0.5%

Vacation

Antarctica trip for 2 (22 days)

548,000

0.0%

Vacation

Africa Safari(Tanzania+Kenya)(12 days)

275,000

0.0%

Hotel

Beijing Park Hyatt Hotel Executive   Suites (2 nights)

26,120

32.7%

Hotel

Shanghai Peninsula Hotel Executive   Suites (2 nights)

14,750

28.3%

Hotel

Waldorf Astoria Shanghai Waldorf   Suite-Heritage Building (1 Night)

14,000

16.6%

Hotel

Pudong Shangri-la Hotel Presidential   Suite  (1 night)

53,360

-21.2%

Hotel

Lijiang Banyan Tree Deluxe Pool Villa (3   nights)

10,653

-2.6%

Hotel

Peninsula Hong Kong Superior Harbor View   Suite (3 nights)

20,774

-37.0%

Hotel

Peninsula Hong Kong Presidential Suite   (1 night)

109,190

8.0%

Hotel

The Ritz-Carlton, Hong Kong Deluxe   Seaside Presidential Suite (1 Night)

129,000

17.6%

GBP/RMB

GBP/RMB

9.35

-1.0%

USD/RMB

USD/RMB

6.56

7.2%

Euro/RMB

Euro/RMB

7.38

6.6%

SFR/RMB

SFR/RMB

6.8

2.0%

AUD/RMB

AUD/RMB

4.84

3.5%

JPY/RMB

JPY/RMB

0.06

22.8%

HKD/RMB

HKD/RMB

0.84

6.9%


Wedding


5.0%

Wedding Planning

High-end customized wedding plan by 51 Chaohun

300,000

0.0%

Wedding Photograph

August Photo Studio

21,999

10.0%

Wedding Gown

August Photo Studio

7,000

0.0%

Wedding Hotel

Shangri-La Hotel. Hangzhou   (Weddings-Celebrations)

5,688

2.5%

Wedding Hotel

Park Hyatt Hotel  (Weddings-Celebrations)

8,888

12.7%


Watches and Jewelry


3.9%

Gold

Au99.95 1KG

259,000

8.2%

Diamond

Diamond    Round  1.00ct F vvs 1

80,000

6.0%

Luxury Watch

Patek Philippe (Nautilus 5712/1A)

250,300

3.3%

Luxury Watch

Patek Philippe (Calatrava 5296 G-001)

203,300

0.0%

Luxury Watch

Rolex (Oyster Perpetual Datejust 116233)

97,800

0.0%

Luxury Jewelry

Cartier (Love Bracelet)

49,100

0.0%

Luxury Watch

Piaget (Polo GOA32039)

277,000

0.0%

Writing Instrument

Montblanc (Meisterstück 149 Fountain   Pen)

7,100

4.4%

Luxury Jewelry

Adler Diamond Sapphire Necklace Item   #148008

48,209

7.2%

Luxury Jewelry

Cartier (Love Necklace B7013700)

32,800

0.0%

Luxury Watch

Louis Vuitton (Lovely Cup, M size)

42,000

0.0%

Luxury Jewelry

Bulgari Necklace Rose Gold

21,200

-2.8%

Luxury Jewelry

Tiffany Keys Crown Key Pendant Necklace   With Diamond

89,000

2.3%

Luxury Jewelry

Chow Tai Fook Zodiac Investment Gold   (200g)

68,000

26.3%


Accessories and Skincare


2.9%

Luxury Accessories

Louis Vuitton Speedy Bag (25cm)

10,500

0.0%

Luxury Accessories

Chanel (A01112 Bag)

33,000

10.7%

Luxury Accessories

Ermenegildo Zegna Bespoke Suits

23,600

-1.3%

Luxury Accessories

Hermes Birkin (Crocodile Skin 35cm)

450,000

28.6%

Luxury Handset

Vertu Signature Rose Gold Phone

340,000

-2.9%

Cosmetic

La Mer (60ml Cream)

2,550

-10.5%

Luxury Accessories

Hermes (90cm Scarf)

3,400

-9.3%

Luxury Accessories

Christian Louboutin Pigalle High Heels   (120 mm)

4,700

11.1%

Luxury Accessories

Salvatore Ferragamo Tina

5,600

0.0%


Jets and Yachts


0.9%

Yacht

Azimut Grande 120L

99,600,000

7.0%

Yacht

Sunseeker 28M

40,600,000

-12.0%

Jet

Gulfstream G550 (Excl. Tax)

327,950,000

-17.0%

Jet

Gulfstream G650 (Excl. Tax)

417,090,000

7.0%

Jet

Dassault Falcon 7x (Excl. Tax)

341,068,000

7.0%

Jet

Dassault Falcon 8x (Excl. Tax)

393,540,000

7.0%

Jet

Bombardier Global 6000 (Excl. Tax)

321,391,000

7.0%


Leisure


0.9%

Golf Club Membership

Mission Hills Golf Club Diamond   Membership

2,380,000

4.4%

Golf Club Membership

Sheshan Golf Club Membership, Shanghai

2,350,000

-2.1%

Golf Club Membership

Fuchun Resort Golf, Zhejiang

1,020,000

0.0%

Golf Club Membership

Reginwood Pine Golf Club, Beijing

2,885,960

16.4%

Club Membership

Beijing Hong Kong Jockey Club

300,000

9.1%

Club Membership

ChangAn Club Membership, Beijing

188,000

11.9%

Golf

One round of golf at Spring City-Golf   & Lake Resort, Yunnan

1,980

-33.6%


Alcohol and Tobacco


-0.2%

Premium Cognac

Richard Hennessy

31,888

3.3%

Premium Cognac

Louis XIII

23,288

1.3%

Premium Whiskey

Royal Salute 21 Years

1,608

8.7%

Premium Whiskey

Chivas 18 Years

800

1.5%

Premium Whiskey

Chivas 25 Years

2,668

2.7%

Premium Whiskey

Johnnie Walker Blue Label

1,199

-15.6%

Premium Whiskey

Macallan Highland Single Malt 12Y

450

-18.2%

Premium Baijiu

Moutai 30 Years

17,580

0.0%

Premium Baijiu

Feitian Moutai (500ml)

1,159

-9.5%

Premium Baijiu

Swellfun-Classical Collection

1,340

0.0%

Premium Baijiu

Wuliangye 52% Vol

2,280

-2.9%

Premium Wine

Lafite Rothschild 1982

385,000

11.4%

Premium Champagne

Moet & Chandon Imperial

499

-5.5%

Cigar

Davidoff Cigar No.2

3,980

10.6%

Premium Cigarettes

10 packets of Panda Cigarettes

850

6.3%

Premium Cigarettes

10 packets of Zhonghua Cigarettes

720

2.9%


Automobiles


-1.3%

Luxury Sedan

Audi A6L 3.0 2015 Allroad Quattro

539,900

-9.9%

Luxury Sedan

BMW 740Li

1,358,000

1.8%

Luxury Sedan

Mercedes-Benz S500L

1,998,000

-4.8%

Business Limousine

Rolls-Royce Phantom EWB

7,980,000

0.0%

SUV

Range Rover V8

2,608,000

-1.5%

Sport Car

Porsche 911 Turbo

2,305,000

4.9%

Electric Car

Tesla Model S

1,048,600

0.0%

 

 

About Hurun Report Inc.

since 1999

 

Established as a research unit in 1999, Hurun Report Inc. has grown into a leading media group targeted at China and India high net worth individuals. Its flagship is the Hurun China Rich List and, since 2012, the Hurun Global Rich List. Headquartered in Shanghai, Hurun Report has offices in Beijing, Guangzhou, Chengdu, Sanya, London, Los Angeles, Chicago and Cochin, Kerala in India.

 

Hurun Report Inc has five divisions.

Hurun Research (‘Nobody Knows China’s Rich Better’) has grown to become the world’s leading authority when it comes to understanding the Chinese high net worth individual. Recent reports include partnering with some of China’s most important financial institutions, local government, multinationals and luxury brands, including Bank of China, Taikang Life, Minsheng Bank, Minsheng Financial Leasing, Industrial Bank of China and the Changbaishan government.

 

Hurun Media (‘The Voice of Chinese Entrepreneurship’) reaches between one and two million unique viewers a week through its digital platform and a further 485,000 a month through its print media. Digital media is made up of 7 Wechat social media, an online business talk show called MaShangHu, distributed through iQiyi, CBN and Ningxia Satellite, and Hurun.net. Our flagship Wechat media is Hurun Business, with others including Hurun Education, Hurun Art, Hurun Horse & Sports, Hurun Health, Hurun Property and Hurun English;etc.

 

Hurun Conferences and Training hosts over 100 events across China every year, led by its flagships in Beijing and Shanghai every year.  Hurun Conferences and Training brings Chinese entrepreneurs aboard, to the US, London, Singapore, Australia and India.

 

Hurun International. Hurun Report Inc established its India business in 2012, which today is best-known for the Hurun India Rich List, Hurun India Philanthropy List and for hosting events with some of India’s most respected entrepreneurs.

 

Hurun Investments includes a CNY 100m early-stage venture capital fund, and strategic investments in media, education, classic cars, financial services and luxury.

 

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