Hurun Luxury Consumer Price Index 2016

Source:Hurun Research Institute Author: IssueTime:2016-07-19

Hurun Research Institute today release the Luxury Consumer Price Index 2016.

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)

2015:https://www.hurun.net/CN/ArticleShow.aspx?nid=12633

2014:https://www.hurun.net/CN/ArticleShow.aspx?nid=4538

2013:https://www.hurun.net/CN/ArticleShow.aspx?nid=111

2012:https://www.hurun.net/CN/ArticleShow.aspx?nid=309

2011:https://www.hurun.net/CN/ArticleShow.aspx?nid=419

2010:https://www.hurun.net/CN/ArticleShow.aspx?nid=1473

2009:https://www.hurun.net/CN/ArticleShow.aspx?nid=1489

2008:https://www.hurun.net/CN/ArticleShow.aspx?nid=12629

2007:https://www.hurun.net/CN/ArticleShow.aspx?nid=12630

 

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 CNYAverage%

Total
5.10%

Property
13.00%
Beijing VillaBeijing Ligong Villa (1000 ㎡)85,000,00021.40%
Shanghai VillaShanghai Shimao Sheshan Villa (750㎡)56,250,00022.30%
Shanghai ApartmentShanghai Tomson Riviera (400㎡)68,000,0006.50%
Shanghai VillaShanghai Binjiang (278㎡)21,684,00016.40%
Shanghai ApartmentShanghai Star River (500㎡)41,500,00010.70%
Shenzhen ApartmentShenzhen East Sea Garden Junhaoge (316㎡)25,912,00057.00%
Hangzhou VillaHangzhou Green Town Taohuayuan Villa (700㎡)39,200,000-2.00%
Chengdu VillaChengdu Luxehill International Heizuan Villa (590㎡)18,850,000-0.60%
Nanjing ApartmentNanjing Feinikesi Flat (184㎡)6,440,00016.70%
Hainan ApartmentHainan Yajule Villa (145㎡)3,190,000-12.00%
Hong Kong ApartmentVictoria Peak of Hongkong Yiyuan (3000㎡)84,460,00022.90%
London ApartmentLondon Apartment (150㎡)45,000,0000.00%
New York ApartmentNew York Apartment (150㎡)36,000,0009.40%
Los Angeles ApartmentLos Angeles Apartment (150㎡)15,000,00011.70%
San Francisco ApartmentSan Francisco Apartment (150㎡)10,455,00017.90%
Boston ApartmentBoston Apartment (150㎡)4,565,00010.80%
Vancouver ApartmentVancouver Apartment (150㎡)13,118,00028.00%
Sydney ApartmentSydney Apartment (150㎡)24,500,00014.80%
Melbourne ApartmentMelbourne Apartment (150㎡)5,600,00011.90%
Singapore ApartmentSingapore Apartment (150㎡)17,270,0004.30%

Health
11.70%
CheckupCiming Checkup7,51434.00%
Plastic surgeryL’Avion Anti-aging Placenta Extract Tour to   Switzerland428,0000.00%
Plastic surgeryHuamei Medical Beauty Hospital (double-fold eyelids)20,0000.00%
Plastic surgeryHuamei Medical Beauty Hospital(Collagen injections of   the nose)13,80028.00%
HousekeepingFilipino -- Shanghai Boni Housekeeping 1 year86,40020.00%
HousekeepingMeiyu House-Keeping Services 1 year300,0000.00%
Sercurity GuardBojing Security Guard ( A Class, Male) 1 year420,0000.00%

Education
6.20%
Domestic EducationYK Pao School Primary School 1 Year Tuition Fee156,0004.00%
Domestic EducationBeijing Harrow School 1 Year Tuition Fee268,8004.00%
Domestic EducationHong Kong Harrow School 1 Year Tuition Fee157,59012.30%
EMBAHuPan Business School 3 Year Course360,00028.60%
EMBATsinghua University EMBA560,0000.00%
EMBACKGSB EMBA698,0001.20%
EMBACEIBS EMBA608,0003.20%
CEO ProgramCKGSB CEO990,0000.00%
International EducationWycombe Abbey School, UK343,6002.00%
International EducationEton Summer Course, UK64,8003.20%
International EducationPhilips Academy Andover, US341,7009.60%

Travel
5.00%
Jet CharterSanya-Beijing Return 8 People Charter Business   Jet (Hawker Private Jet 900XP)351,000-0.10%
Jet CharterBeijing-Los   Angeles Return 15 People Charter Business Jet (Gulfstream G550)2,500,0000.20%
Air FareBeijing-Paris Return 2 People Air France First Class   Ticket180,00013.80%
Air FareSingapore Airlines First Class Ticket   (Beijing-Singapore 5 People)120,0000.50%
VacationAntarctica trip for 2 (22 days)548,0000.00%
VacationAfrica Safari(Tanzania+Kenya)(12 days)275,0000.00%
HotelBeijing Park Hyatt Hotel Executive Suites (2 nights)26,12032.70%
HotelShanghai Peninsula Hotel Executive Suites (2 nights)14,75028.30%
HotelWaldorf Astoria Shanghai Waldorf Suite-Heritage   Building (1 Night)14,00016.60%
HotelPudong Shangri-la Hotel Presidential Suite  (1   night)53,360-21.20%
HotelLijiang Banyan Tree Deluxe Pool Villa (3 nights)10,653-2.60%
HotelPeninsula Hong Kong Superior Harbor View Suite (3   nights)20,774-37.00%
HotelPeninsula Hong Kong Presidential Suite (1 night)109,1908.00%
HotelThe Ritz-Carlton, Hong Kong Deluxe Seaside   Presidential Suite (1 Night)129,00017.60%
GBP/RMBGBP/RMB9.35-1.00%
USD/RMBUSD/RMB6.567.20%
Euro/RMBEuro/RMB7.386.60%
SFR/RMBSFR/RMB6.82.00%
AUD/RMBAUD/RMB4.843.50%
JPY/RMBJPY/RMB0.0622.80%
HKD/RMBHKD/RMB0.846.90%

Wedding
5.00%
Wedding PlanningHigh-end customized wedding plan by 51 Chaohun300,0000.00%
Wedding PhotographAugust Photo Studio21,99910.00%
Wedding GownAugust Photo Studio7,0000.00%
Wedding HotelShangri-La Hotel. Hangzhou (Weddings-Celebrations)5,6882.50%
Wedding HotelPark Hyatt Hotel  (Weddings-Celebrations)8,88812.70%

Watches and Jewelry
3.90%
GoldAu99.95 1KG259,0008.20%
DiamondDiamond  Round  1.00ct F vvs 180,0006.00%
Luxury WatchPatek Philippe (Nautilus 5712/1A)250,3003.30%
Luxury WatchPatek Philippe (Calatrava 5296 G-001)203,3000.00%
Luxury WatchRolex (Oyster Perpetual Datejust 116233)97,8000.00%
Luxury JewelryCartier (Love Bracelet)49,1000.00%
Luxury WatchPiaget (Polo GOA32039)277,0000.00%
Writing InstrumentMontblanc (Meisterstück 149 Fountain Pen)7,1004.40%
Luxury JewelryAdler Diamond Sapphire Necklace Item #14800848,2097.20%
Luxury JewelryCartier (Love Necklace B7013700)32,8000.00%
Luxury WatchLouis Vuitton (Lovely Cup, M size)42,0000.00%
Luxury JewelryBulgari Necklace Rose Gold21,200-2.80%
Luxury JewelryTiffany Keys Crown Key Pendant Necklace With Diamond89,0002.30%
Luxury JewelryChow Tai Fook Zodiac Investment Gold (200g)68,00026.30%

Accessories and Skincare
2.90%
Luxury AccessoriesLouis Vuitton Speedy Bag (25cm)10,5000.00%
Luxury AccessoriesChanel (A01112 Bag)33,00010.70%
Luxury AccessoriesErmenegildo Zegna Bespoke Suits23,600-1.30%
Luxury AccessoriesHermes Birkin (Crocodile Skin 35cm)450,00028.60%
Luxury HandsetVertu Signature Rose Gold Phone340,000-2.90%
CosmeticLa Mer (60ml Cream)2,550-10.50%
Luxury AccessoriesHermes (90cm Scarf)3,400-9.30%
Luxury AccessoriesChristian Louboutin Pigalle High Heels (120 mm)4,70011.10%
Luxury AccessoriesSalvatore Ferragamo Tina5,6000.00%

Jets and Yachts
0.90%
YachtAzimut Grande 120L99,600,0007.00%
YachtSunseeker 28M40,600,000-12.00%
JetGulfstream G550 (Excl. Tax)327,950,000-17.00%
JetGulfstream G650 (Excl. Tax)417,090,0007.00%
JetDassault Falcon 7x (Excl. Tax)341,068,0007.00%
JetDassault Falcon 8x (Excl. Tax)393,540,0007.00%
JetBombardier Global 6000 (Excl. Tax)321,391,0007.00%

Leisure
0.90%
Golf Club MembershipMission Hills Golf Club Diamond Membership2,380,0004.40%
Golf Club MembershipSheshan Golf Club Membership, Shanghai2,350,000-2.10%
Golf Club MembershipFuchun Resort Golf, Zhejiang1,020,0000.00%
Golf Club MembershipReginwood Pine Golf Club, Beijing2,885,96016.40%
Club MembershipBeijing Hong Kong Jockey Club300,0009.10%
Club MembershipChangAn Club Membership, Beijing188,00011.90%
GolfOne round of golf at Spring City-Golf & Lake   Resort, Yunnan1,980-33.60%

Alcohol and Tobacco
-0.20%
Premium CognacRichard Hennessy31,8883.30%
Premium CognacLouis XIII23,2881.30%
Premium WhiskeyRoyal Salute 21 Years1,6088.70%
Premium WhiskeyChivas 18 Years8001.50%
Premium WhiskeyChivas 25 Years2,6682.70%
Premium WhiskeyJohnnie Walker Blue Label1,199-15.60%
Premium WhiskeyMacallan Highland Single Malt 12Y450-18.20%
Premium BaijiuMoutai 30 Years17,5800.00%
Premium BaijiuFeitian Moutai (500ml)1,159-9.50%
Premium BaijiuSwellfun-Classical Collection1,3400.00%
Premium BaijiuWuliangye 52% Vol2,280-2.90%
Premium WineLafite Rothschild 1982385,00011.40%
Premium ChampagneMoet & Chandon Imperial499-5.50%
CigarDavidoff Cigar No.23,98010.60%
Premium Cigarettes10 packets of Panda Cigarettes8506.30%
Premium Cigarettes10 packets of Zhonghua Cigarettes7202.90%

Automobiles
-1.30%
Luxury SedanAudi A6L 3.0 2015 Allroad Quattro539,900-9.90%
Luxury SedanBMW 740Li1,358,0001.80%
Luxury SedanMercedes-Benz S500L1,998,000-4.80%
Business LimousineRolls-Royce Phantom EWB7,980,0000.00%
SUVRange Rover V82,608,000-1.50%
Sport CarPorsche 911 Turbo2,305,0004.90%
Electric CarTesla Model S1,048,6000.00%


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.

 

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