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
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》)
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
Beijing Ligong Villa (1000 ㎡)
Shanghai Shimao Sheshan Villa (750㎡)
Shanghai Tomson Riviera (400㎡)
Shanghai Binjiang (278㎡)
Shanghai Star River (500㎡)
Shenzhen East Sea Garden Junhaoge (316㎡)
Hangzhou Green Town Taohuayuan Villa (700㎡)
Chengdu Luxehill International Heizuan Villa (590㎡)
Nanjing Feinikesi Flat (184㎡)
Hainan Yajule Villa (145㎡)
Hong Kong Apartment
Victoria Peak of Hongkong Yiyuan (3000㎡)
London Apartment (150㎡)
New York Apartment
New York Apartment (150㎡)
Los Angeles Apartment
Los Angeles Apartment (150㎡)
San Francisco Apartment
San Francisco Apartment (150㎡)
Boston Apartment (150㎡)
Vancouver Apartment (150㎡)
Sydney Apartment (150㎡)
Melbourne Apartment (150㎡)
Singapore Apartment (150㎡)
L’Avion Anti-aging Placenta Extract Tour to Switzerland
Huamei Medical Beauty Hospital (double-fold eyelids)
Huamei Medical Beauty Hospital(Collagen injections of the nose)
Filipino -- Shanghai Boni Housekeeping 1 year
Meiyu House-Keeping Services 1 year
Bojing Security Guard ( A Class, Male) 1 year
YK Pao School Primary School 1 Year Tuition Fee
Beijing Harrow School 1 Year Tuition Fee
Hong Kong Harrow School 1 Year Tuition Fee
HuPan Business School 3 Year Course
Tsinghua University EMBA
Wycombe Abbey School, UK
Eton Summer Course, UK
Philips Academy Andover, US
Sanya-Beijing Return 8 People Charter Business Jet
Beijing-Los Angeles Return 15 People Charter Business Jet (Gulfstream G550)
Beijing-Paris Return 2 People Air France First Class Ticket
Singapore Airlines First Class Ticket (Beijing-Singapore 5 People)
Antarctica trip for 2 (22 days)
Africa Safari(Tanzania+Kenya)(12 days)
Beijing Park Hyatt Hotel Executive Suites (2 nights)
Shanghai Peninsula Hotel Executive Suites (2 nights)
Waldorf Astoria Shanghai Waldorf Suite-Heritage Building (1 Night)
Pudong Shangri-la Hotel Presidential Suite (1 night)
Lijiang Banyan Tree Deluxe Pool Villa (3 nights)
Peninsula Hong Kong Superior Harbor View Suite (3 nights)
Peninsula Hong Kong Presidential Suite (1 night)
The Ritz-Carlton, Hong Kong Deluxe Seaside Presidential Suite (1 Night)
High-end customized wedding plan by 51 Chaohun
August Photo Studio
August Photo Studio
Shangri-La Hotel. Hangzhou (Weddings-Celebrations)
Park Hyatt Hotel (Weddings-Celebrations)
Watches and Jewelry
Diamond Round 1.00ct F vvs 1
Patek Philippe (Nautilus 5712/1A)
Patek Philippe (Calatrava 5296 G-001)
Rolex (Oyster Perpetual Datejust 116233)
Cartier (Love Bracelet)
Piaget (Polo GOA32039)
Montblanc (Meisterstück 149 Fountain Pen)
Adler Diamond Sapphire Necklace Item #148008
Cartier (Love Necklace B7013700)
Louis Vuitton (Lovely Cup, M size)
Bulgari Necklace Rose Gold
Tiffany Keys Crown Key Pendant Necklace With Diamond
Chow Tai Fook Zodiac Investment Gold (200g)
Accessories and Skincare
Louis Vuitton Speedy Bag (25cm)
Chanel (A01112 Bag)
Ermenegildo Zegna Bespoke Suits
Hermes Birkin (Crocodile Skin 35cm)
Vertu Signature Rose Gold Phone
La Mer (60ml Cream)
Hermes (90cm Scarf)
Christian Louboutin Pigalle High Heels (120 mm)
Salvatore Ferragamo Tina
Jets and Yachts
Azimut Grande 120L
Gulfstream G550 (Excl. Tax)
Gulfstream G650 (Excl. Tax)
Dassault Falcon 7x (Excl. Tax)
Dassault Falcon 8x (Excl. Tax)
Bombardier Global 6000 (Excl. Tax)
Golf Club Membership
Mission Hills Golf Club Diamond Membership
Golf Club Membership
Sheshan Golf Club Membership, Shanghai
Golf Club Membership
Fuchun Resort Golf, Zhejiang
Golf Club Membership
Reginwood Pine Golf Club, Beijing
Beijing Hong Kong Jockey Club
ChangAn Club Membership, Beijing
One round of golf at Spring City-Golf & Lake Resort, Yunnan
Alcohol and Tobacco
Royal Salute 21 Years
Chivas 18 Years
Chivas 25 Years
Johnnie Walker Blue Label
Macallan Highland Single Malt 12Y
Moutai 30 Years
Feitian Moutai (500ml)
Wuliangye 52% Vol
Lafite Rothschild 1982
Moet & Chandon Imperial
Davidoff Cigar No.2
10 packets of Panda Cigarettes
10 packets of Zhonghua Cigarettes
Audi A6L 3.0 2015 Allroad Quattro
Rolls-Royce Phantom EWB
Range Rover V8
Porsche 911 Turbo
Tesla Model S
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.
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