Apple tops Louis Vuitton, Gucci as the gift of choice among China's wealthy

Posted:
in iPhone edited January 2015
Many wealthy Chinese consumers chose to forego designer handbags or expensive liquor when choosing gifts in 2014, a new report indicates, instead opting for Apple's iPhone, iPad, or Mac computers.




Apple edged out a number of other world-famous brands for the title, with Louis Vuitton coming in second, Gucci in third, and Chanel in fourth. The data was collected from a survey of nearly 400 Chinese millionaires, each with a net worth equal to or greater than 10 million Yuan ($1.6 million), conducted by luxury analysis firm Hurun and first noted by Reuters.

The news comes days after Apple reported record quarterly earnings that were bolstered by strong sales in Greater China, which includes Hong Kong and Taiwan. The region accounted for $16.1 billion of Apple's $74.6 billion in revenue over the period, a 157 percent year-over-year spike.

Perhaps making those numbers even more impressive, Hurun noted that most luxury purchases were made outside of mainland China, leading to an overall decline in domestic luxury spending.

"Travel retail continues to change the dynamics of luxury in China, with 7 out of 10 luxury goods bought by Chinese now being bought overseas," Hurun founder Rupert Hoogewerf said.

China is an increasingly important market for Apple, and the company has reportedly gone as far as to agree to subject its products to government security audits in order to appease Chinese officials. The company is also in the midst of a major retail expansion, with a goal to operate 40 stores in the country by mid-2016.

During Apple's quarterly earnings call, CEO Tim Cook called China "an incredible market." "I think people love Apple products and we're going to do our best to serve the market," he added.
«1

Comments

  • Reply 1 of 24
    sflocalsflocal Posts: 4,537member

    It's really a no-brainer.  One cannot go wrong with giving an Apple product, let alone an iPhone as a gift.  It's well-crafted, high quality, and made to give years of service.



    I can imagine someone giving an Android phone as a gift.  The recipient would say "What is this sh!t?"

  • Reply 2 of 24
    dasanman69dasanman69 Posts: 12,979member
    Why does this come to mind?
    [VIDEO]
  • Reply 3 of 24
    magman1979magman1979 Posts: 1,121member
    dasanman69 wrote: »
    Why does this come to mind?
    [VIDEO]
    ROTFLMMFAO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    OK, I'm crying, and my ribs hurt!!!

    THANKS!!!
  • Reply 4 of 24
    xixoxixo Posts: 421member
    The second most popular gift item among the Chinese 1% was an American nanny for the kids...
  • Reply 5 of 24
    dasanman69dasanman69 Posts: 12,979member
    magman1979 wrote: »
    THANKS!!!

    You're most welcome.
  • Reply 6 of 24
    arlorarlor Posts: 495member
    Quote:

    Originally Posted by sflocal View Post

     

    It's really a no-brainer.  One cannot go wrong with giving an Apple product, let alone an iPhone as a gift.  It's well-crafted, high quality, and made to give years of service.



    I can imagine someone giving an Android phone as a gift.  The recipient would say "What is this sh!t?"


     

    Seems weird in another way, though: I might always have a use for more wine, makeup, clothing, or accessories, but I never need more than one phone and one tablet at a time. 

  • Reply 7 of 24
    mpantonempantone Posts: 1,375member


    Some of those gifts were meant for other people, meaning they weren't just personal purchases. You realize you can gift things to others, yes?

     

    So if you are married with two kids, each parent with at least one sibling who has two kids, that's potentially twelve phones and twelve tablets. That doesn't even touch people like your own parents, your in-laws, various cousins, etc.

     

    And note that gift giving is more of a tradition in some countries like others.

  • Reply 8 of 24

    Louis Vuitton is overrated, ugly, and vulgarly expensive.

     

    Why would anyone want that or Versace when there are actually good looking understated stuff like Burberry and Gucci.

     

    Is it just BS pea cocking?

  • Reply 9 of 24
    Quote:

    Originally Posted by Arlor View Post

     

     

    Seems weird in another way, though: I might always have a use for more wine, makeup, clothing, or accessories, but I never need more than one phone and one tablet at a time. 




    I understand only needing one [smart] phone but the nice thing about "tablets" is that you can always put the "retirees" to work, re-purpose if you will.  

  • Reply 10 of 24
    MacProMacPro Posts: 18,164member
    But ... but ... go back a few years and read AI ... Trolls here stated no one in China could afford an Apple product. Apple they said could never succeed in China!
  • Reply 11 of 24
    Amazing how an American factory worker can have something in common and desire with a rich Chinese...
  • Reply 12 of 24
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by mpantone View Post

    So if you are married with two kids, each parent with at least one sibling who has two kids, that's potentially twelve phones and twelve tablets. That doesn't even touch people like your own parents, your in-laws, various cousins, etc.

    There is still one child per couple law in China.

     

    Interesting circumstance is that in addition to two parents, every child also has four grandparents who give them gifts and who have no other grand kids. So...

     

    1 iPhone

    1 iPad

    1 MBP

    1 iMac

    1 ?TV

    1 ?Watch

  • Reply 13 of 24
    mpantonempantone Posts: 1,375member

    Well, that's partly dependent on the efficacy of the enforcement of said law.

     

    China's population continues to increase. It'll be years before the population growth curve flattens out, even if they are extremely strict in enforcing it.

  • Reply 14 of 24
    Quote:

    Originally Posted by sflocal View Post

     

    It's really a no-brainer.  One cannot go wrong with giving an Apple product, let alone an iPhone as a gift.  It's well-crafted, high quality, and made to give years of service.



    I can imagine someone giving an Android phone as a gift.  The recipient would say "What is this sh!t?"




    but but but competition means Apple will maybe lower its prices

  • Reply 15 of 24

    In an oblique way, this is another benefit of Apple's simplified product line.

     

    Clearly, the iPhone is a desirable object as a gift.

     

    The only real options are storage size and color. After that it's whether it's an older or newer model.  Functionally the differences are slight (better optics in the Plus).

     

    But the unique silhouette of an iPhone is recognized by everyone. It even offers a unique signature (Sent from my iPhone). No worries about choosing the right style bag, or trim, or from a multitude of fabric. Just the iPhone, highly suited for any gender, any taste and virtually any age, sure to please at any time.

  • Reply 16 of 24
    nick29nick29 Posts: 111member
    I thought China was a Communist, workers paradise where everyone was equal? I guess some pigs are more equal than others ;)
  • Reply 17 of 24

    For those who believe North Americans would not pay thousands for a $349 product, China is where the Apple Watch will succeed on the high end.

  • Reply 18 of 24
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by mpantone View Post

     

    Well, that's partly dependent on the efficacy of the enforcement of said law.

     

    China's population continues to increase. It'll be years before the population growth curve flattens out, even if they are extremely strict in enforcing it.


    Actually it is not so much a law as it is a policy. In the major cities it is almost universally followed as there are rewards for adhering to the policy, however, in the rural areas not as much. Even though China's population is still growing, the birth rate per woman is less than sustainable. Anyway, the point is that the cities are where the wealthy people live, the ones who are buying iPhones, and they are generally following the one child policy.

  • Reply 19 of 24
    mpantonempantone Posts: 1,375member
    Quote:
    Originally Posted by mstone View Post

     

    Actually it is not so much a law as it is a policy. In the major cities it is almost universally followed as there are rewards for adhering to the policy, however, in the rural areas not as much. Even though China's population is still growing, the birth rate per woman is less than sustainable. Anyway, the point is that the cities are where the wealthy people live, the ones who are buying iPhones, and they are generally following the one child policy.




    Yes, except this survey was conducted from a pool of millionaires, the type of people who can afford gifting iPhones and who probably are rich enough to ignore the one-child-per-couple policy.

     

    The survey here was about the gifting habits of China's 1%, not about China's Joe Consumer.

  • Reply 20 of 24
    mstonemstone Posts: 11,510member
    Quote:

    Originally Posted by mpantone View Post

     
    Yes, except this survey was conducted from a pool of millionaires, the type of people who can afford gifting iPhones and who probably are rich enough to ignore the one-child-per-couple policy.

     

    The survey here was about the gifting habits of China's 1%, not about China's Joe Consumer.


    Whatever…I was just pointing out that your original comment about all the siblings and cousins in China was completely ill-informed. There are no siblings or cousins. 

Sign In or Register to comment.