Publisher guides mainlanders on luxury with Chinese characteristics

In the global luxury industry, China 'is the hero of the moment' while most developed countries are struggling against the economic slowdown. With sales of luxury goods on the mainland expected to exceed US$15 billion in the next five years, China will become the world's largest luxury market. In the latest wealth boom, luxury magazines have become popular and lucrative items on the mainland. The desks of the well-to-do are piled high with dozens of lush, glossy magazines that tell them how to spend their millions. Le Yaohui , who founded a luxury website and the magazine Privateluxy, talks about the phenomenon and these ventures.

Who are the luxury consumers on the mainland?

The answers will be different on the mainland. Some say it's multimillionaires such as private entrepreneurs, film stars, mine owners and bankers, but many young people also spend several months of salaries on luxury handbags or cosmetics. The Chinese tend to like status symbols. They like to reward themselves and show the world their achievements. Therefore, they prefer recognisable brands and products with logos. Chinese consumers will pick the biggest luxury brands first, then move into more niche markets later. We will see Beijing and Shanghai tire of leading luxury brands when second-tier cities start buying them. No matter how the development goes, what is clear is that buyers in top cities are keen to show off not only their wealth but also their unique taste and knowledge of brands. As more buyers in top cities enter the market, the wealthy people who love the top brands may look elsewhere as they try to set themselves apart. But so far, luxury products are all overseas brands to Chinese people.

How is the current market in China for a luxury magazine?

There have been a number of newly launched luxury media outlets in the past couple of years. I estimate there are more than 60 luxury websites and about four or five luxury magazines designed for the Chinese. Before, such magazines were usually in English or traditional Chinese [for Hong Kong and Taiwanese readers]. Now more people joining the market are printing simplified-Chinese editions.

Do you see much room for growth?