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
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.
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.
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%.
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.
Weddings, which enjoyed the highest increase last year, continues to grow by 5% this year. Celebrity effect plays a significant role affected the price.
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%.
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%.
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.
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.
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
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》)
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 to《Chinese 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》)
For further details on previous year’s Hurun Luxury Consumer Price Index (Luxury CPI), please see: (Chinese version)
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%|
|Beijing Villa||Beijing Ligong Villa (1000 ㎡)||85,000,000||21.40%|
|Shanghai Villa||Shanghai Shimao Sheshan Villa (750㎡)||56,250,000||22.30%|
|Shanghai Apartment||Shanghai Tomson Riviera (400㎡)||68,000,000||6.50%|
|Shanghai Villa||Shanghai Binjiang (278㎡)||21,684,000||16.40%|
|Shanghai Apartment||Shanghai Star River (500㎡)||41,500,000||10.70%|
|Shenzhen Apartment||Shenzhen East Sea Garden Junhaoge (316㎡)||25,912,000||57.00%|
|Hangzhou Villa||Hangzhou Green Town Taohuayuan Villa (700㎡)||39,200,000||-2.00%|
|Chengdu Villa||Chengdu Luxehill International Heizuan Villa (590㎡)||18,850,000||-0.60%|
|Nanjing Apartment||Nanjing Feinikesi Flat (184㎡)||6,440,000||16.70%|
|Hainan Apartment||Hainan Yajule Villa (145㎡)||3,190,000||-12.00%|
|Hong Kong Apartment||Victoria Peak of Hongkong Yiyuan (3000㎡)||84,460,000||22.90%|
|London Apartment||London Apartment (150㎡)||45,000,000||0.00%|
|New York Apartment||New York Apartment (150㎡)||36,000,000||9.40%|
|Los Angeles Apartment||Los Angeles Apartment (150㎡)||15,000,000||11.70%|
|San Francisco Apartment||San Francisco Apartment (150㎡)||10,455,000||17.90%|
|Boston Apartment||Boston Apartment (150㎡)||4,565,000||10.80%|
|Vancouver Apartment||Vancouver Apartment (150㎡)||13,118,000||28.00%|
|Sydney Apartment||Sydney Apartment (150㎡)||24,500,000||14.80%|
|Melbourne Apartment||Melbourne Apartment (150㎡)||5,600,000||11.90%|
|Singapore Apartment||Singapore Apartment (150㎡)||17,270,000||4.30%|
|Plastic surgery||L’Avion Anti-aging Placenta Extract Tour to Switzerland||428,000||0.00%|
|Plastic surgery||Huamei Medical Beauty Hospital (double-fold eyelids)||20,000||0.00%|
|Plastic surgery||Huamei Medical Beauty Hospital(Collagen injections of the nose)||13,800||28.00%|
|Housekeeping||Filipino -- Shanghai Boni Housekeeping 1 year||86,400||20.00%|
|Housekeeping||Meiyu House-Keeping Services 1 year||300,000||0.00%|
|Sercurity Guard||Bojing Security Guard ( A Class, Male) 1 year||420,000||0.00%|
|Domestic Education||YK Pao School Primary School 1 Year Tuition Fee||156,000||4.00%|
|Domestic Education||Beijing Harrow School 1 Year Tuition Fee||268,800||4.00%|
|Domestic Education||Hong Kong Harrow School 1 Year Tuition Fee||157,590||12.30%|
|EMBA||HuPan Business School 3 Year Course||360,000||28.60%|
|EMBA||Tsinghua University EMBA||560,000||0.00%|
|CEO Program||CKGSB CEO||990,000||0.00%|
|International Education||Wycombe Abbey School, UK||343,600||2.00%|
|International Education||Eton Summer Course, UK||64,800||3.20%|
|International Education||Philips Academy Andover, US||341,700||9.60%|
|Jet Charter||Sanya-Beijing Return 8 People Charter Business Jet (Hawker Private Jet 900XP)||351,000||-0.10%|
|Jet Charter||Beijing-Los Angeles Return 15 People Charter Business Jet (Gulfstream G550)||2,500,000||0.20%|
|Air Fare||Beijing-Paris Return 2 People Air France First Class Ticket||180,000||13.80%|
|Air Fare||Singapore Airlines First Class Ticket (Beijing-Singapore 5 People)||120,000||0.50%|
|Vacation||Antarctica trip for 2 (22 days)||548,000||0.00%|
|Vacation||Africa Safari(Tanzania+Kenya)(12 days)||275,000||0.00%|
|Hotel||Beijing Park Hyatt Hotel Executive Suites (2 nights)||26,120||32.70%|
|Hotel||Shanghai Peninsula Hotel Executive Suites (2 nights)||14,750||28.30%|
|Hotel||Waldorf Astoria Shanghai Waldorf Suite-Heritage Building (1 Night)||14,000||16.60%|
|Hotel||Pudong Shangri-la Hotel Presidential Suite (1 night)||53,360||-21.20%|
|Hotel||Lijiang Banyan Tree Deluxe Pool Villa (3 nights)||10,653||-2.60%|
|Hotel||Peninsula Hong Kong Superior Harbor View Suite (3 nights)||20,774||-37.00%|
|Hotel||Peninsula Hong Kong Presidential Suite (1 night)||109,190||8.00%|
|Hotel||The Ritz-Carlton, Hong Kong Deluxe Seaside Presidential Suite (1 Night)||129,000||17.60%|
|Wedding Planning||High-end customized wedding plan by 51 Chaohun||300,000||0.00%|
|Wedding Photograph||August Photo Studio||21,999||10.00%|
|Wedding Gown||August Photo Studio||7,000||0.00%|
|Wedding Hotel||Shangri-La Hotel. Hangzhou (Weddings-Celebrations)||5,688||2.50%|
|Wedding Hotel||Park Hyatt Hotel (Weddings-Celebrations)||8,888||12.70%|
|Watches and Jewelry||3.90%|
|Diamond||Diamond Round 1.00ct F vvs 1||80,000||6.00%|
|Luxury Watch||Patek Philippe (Nautilus 5712/1A)||250,300||3.30%|
|Luxury Watch||Patek Philippe (Calatrava 5296 G-001)||203,300||0.00%|
|Luxury Watch||Rolex (Oyster Perpetual Datejust 116233)||97,800||0.00%|
|Luxury Jewelry||Cartier (Love Bracelet)||49,100||0.00%|
|Luxury Watch||Piaget (Polo GOA32039)||277,000||0.00%|
|Writing Instrument||Montblanc (Meisterstück 149 Fountain Pen)||7,100||4.40%|
|Luxury Jewelry||Adler Diamond Sapphire Necklace Item #148008||48,209||7.20%|
|Luxury Jewelry||Cartier (Love Necklace B7013700)||32,800||0.00%|
|Luxury Watch||Louis Vuitton (Lovely Cup, M size)||42,000||0.00%|
|Luxury Jewelry||Bulgari Necklace Rose Gold||21,200||-2.80%|
|Luxury Jewelry||Tiffany Keys Crown Key Pendant Necklace With Diamond||89,000||2.30%|
|Luxury Jewelry||Chow Tai Fook Zodiac Investment Gold (200g)||68,000||26.30%|
|Accessories and Skincare||2.90%|
|Luxury Accessories||Louis Vuitton Speedy Bag (25cm)||10,500||0.00%|
|Luxury Accessories||Chanel (A01112 Bag)||33,000||10.70%|
|Luxury Accessories||Ermenegildo Zegna Bespoke Suits||23,600||-1.30%|
|Luxury Accessories||Hermes Birkin (Crocodile Skin 35cm)||450,000||28.60%|
|Luxury Handset||Vertu Signature Rose Gold Phone||340,000||-2.90%|
|Cosmetic||La Mer (60ml Cream)||2,550||-10.50%|
|Luxury Accessories||Hermes (90cm Scarf)||3,400||-9.30%|
|Luxury Accessories||Christian Louboutin Pigalle High Heels (120 mm)||4,700||11.10%|
|Luxury Accessories||Salvatore Ferragamo Tina||5,600||0.00%|
|Jets and Yachts||0.90%|
|Yacht||Azimut Grande 120L||99,600,000||7.00%|
|Jet||Gulfstream G550 (Excl. Tax)||327,950,000||-17.00%|
|Jet||Gulfstream G650 (Excl. Tax)||417,090,000||7.00%|
|Jet||Dassault Falcon 7x (Excl. Tax)||341,068,000||7.00%|
|Jet||Dassault Falcon 8x (Excl. Tax)||393,540,000||7.00%|
|Jet||Bombardier Global 6000 (Excl. Tax)||321,391,000||7.00%|
|Golf Club Membership||Mission Hills Golf Club Diamond Membership||2,380,000||4.40%|
|Golf Club Membership||Sheshan Golf Club Membership, Shanghai||2,350,000||-2.10%|
|Golf Club Membership||Fuchun Resort Golf, Zhejiang||1,020,000||0.00%|
|Golf Club Membership||Reginwood Pine Golf Club, Beijing||2,885,960||16.40%|
|Club Membership||Beijing Hong Kong Jockey Club||300,000||9.10%|
|Club Membership||ChangAn Club Membership, Beijing||188,000||11.90%|
|Golf||One round of golf at Spring City-Golf & Lake Resort, Yunnan||1,980||-33.60%|
|Alcohol and Tobacco||-0.20%|
|Premium Cognac||Richard Hennessy||31,888||3.30%|
|Premium Cognac||Louis XIII||23,288||1.30%|
|Premium Whiskey||Royal Salute 21 Years||1,608||8.70%|
|Premium Whiskey||Chivas 18 Years||800||1.50%|
|Premium Whiskey||Chivas 25 Years||2,668||2.70%|
|Premium Whiskey||Johnnie Walker Blue Label||1,199||-15.60%|
|Premium Whiskey||Macallan Highland Single Malt 12Y||450||-18.20%|
|Premium Baijiu||Moutai 30 Years||17,580||0.00%|
|Premium Baijiu||Feitian Moutai (500ml)||1,159||-9.50%|
|Premium Baijiu||Swellfun-Classical Collection||1,340||0.00%|
|Premium Baijiu||Wuliangye 52% Vol||2,280||-2.90%|
|Premium Wine||Lafite Rothschild 1982||385,000||11.40%|
|Premium Champagne||Moet & Chandon Imperial||499||-5.50%|
|Cigar||Davidoff Cigar No.2||3,980||10.60%|
|Premium Cigarettes||10 packets of Panda Cigarettes||850||6.30%|
|Premium Cigarettes||10 packets of Zhonghua Cigarettes||720||2.90%|
|Luxury Sedan||Audi A6L 3.0 2015 Allroad Quattro||539,900||-9.90%|
|Luxury Sedan||BMW 740Li||1,358,000||1.80%|
|Luxury Sedan||Mercedes-Benz S500L||1,998,000||-4.80%|
|Business Limousine||Rolls-Royce Phantom EWB||7,980,000||0.00%|
|SUV||Range Rover V8||2,608,000||-1.50%|
|Sport Car||Porsche 911 Turbo||2,305,000||4.90%|
|Electric Car||Tesla Model S||1,048,600||0.00%|
About Hurun Report Inc.
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.
For further information, see www.hurun.net