Hurun Luxury Living Index 2008

Source:胡润百富 Author:Pinkle IssueTime:2008-07-02

(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%).

 

Methodology

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


Price increase%*

Retail Price RMB


12.6%





Automobiles and Yachts



Rolls-Royce Phantom EWB

2.9%

7,080,000

Mercedes-Benz S500L

0.0%

1,768,000

BMW 750Li4.8

0.0%

1,538,000

BMW Z4 3.0si

0.0%

650,000

Audi A6L

0.0%

468,000

Bentley Continental

0.0%

3,580,000

Ferretti Yacht 630

4.3%

36,000,000




Watches & Jewelry



Patek Philippe Nautilus (5712/1A)

19.6%

280,700

Rolex Oyster Perpetual Datejust (116233)

8.9%

87,100

Buben & Zōrweg (Time Mover Evolution 4)

20.7%

47,800

Cartier Love bracelet

18.5%

37,200

Montblanc fountain pen (Meisterstueck 149)

0.0%

6,090

Swarovski necklace (660165)

5.1%

1,870




Accessories & Skin Care



Louis Vuitton Speedy Bag

1.8%

5,800

Chanel A01112 Bag

14.0%

22,000

Zegna suit

5.0%

21,000

Hermes 90cm scarf

14.6%

3,300

Vertu Signature Series

0.0%

250,000

Lancôme Secret de la Vie 50ml

3.4%

3,080




Property and Interiors



Shanghai Shimao Sheshan Villa (750)

11.1%

37,500,000

Shanghai Tomson Golf Villa (417)

17.6%

25,000,000

Zhongshan International Golf Villa (600),   Nanjing

75.0%

21,000,000

Mission Hills In Residence (203),   Shenzhen

29.2%

18,630,000

Beijing Cathay View Courtyard Residences (347)

63.7%

12,000,000

Beijing Ligong Villa (780)

27.4%

19,000,000

Davinci Leather Double Sofa

10.0%

330,000

Steinway Concert Grand D Piano

4.5%

1,463,500




Drinks & Smokes



Richard Hennessy

53.9%

19,999

Louis XIII

14.3%

11,860

Royal Salute 21 Years Old

24.5%

996

Chivas 18 Years Old

2.1%

488

Johnnie Walker Blue Label

15.4%

1,500

Moutai 30 Years

25.2%

8,389

Pu'er Tea aged for 30 years

2.5%

20,500

Davidoff Cigar No.2, 1 box

0.0%

3,500

Panda Cigarettes, 1 packet

0.0%

180




Private Clubs



Mission Hills Golf Club Diamond Membership, Shenzhen

48.7%

1,680,000

Sheshan Golf Club Membership, Shanghai

5.0%

1,680,000

Chang'an Club Membership, Shanghai

0.0%

166,000

Fuchun Resort Golf Membership, Hangzhou

3.5%

880,000




Education



Tsinghua University EMBA

9.8%

326,000

Cheung Kong Graduate School of Business EMBA

20.7%

408,000

Harvard University Masters degree

-10.1%

304,287




Travel



Private Jet 800XP Rental fee per hour

28.0%

32,000

Lijiang Banyan Tree (Deluxe Pool Villa) three nights

-8.3%

25,245

Peninsula Hong Kong (Superior Suite) three nights

-0.2%

17,598

Shanghai Pudong Shangri-La one night

0.0%

5,150

·         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.

 

 

For further information, see www.hurun.net

 

For media inquiries, please contact:

Hurun Report

Porsha Pan

Tel: +86-21-50105808*601

Mobile: +86-139 1838 7446

Email: porsha.pan@hurun.net