An observation of the lifestyles of the upper class in China

Chinese Luxury
The number of millionaires
Between 2007 and 2008 the number of
millionaires in China grew by 20.3
percent.
The estimated number of millionaires in
China is approximately 415,000
The rate of growth in millionaires in
China greatly exceeds the average of
8.7 percent in the other 9 major
markets, including other powerful Asian
markets such as India and Japan.
Where do the Rich Live?
Typically the rich (million plus wealth) have
chosen to live in gated and secured
neighborhoods in Shanghai and Beijing.
These neighborhoods have names like
Napa Valley, Palm Springs, Long Beach,
Park Avenue etc.
Average cost of these new single family
homes are on average $800,000.
Western influence: Spanish Arches, Greek
Columns and Faux Roman sculptures
 Forest Manor
Shanghai

3 million dollars which is double the price it was 2 years

Would you want to mess with these two?
Gates to Private Community in China
The Wealthy mind set
Much like what is viewed as the elitist attitudes
of the American rich, China also seems to have
a similar social divide.
The Dark side to China’s new wealth: Envy,
insecurity, and social dislocation. Class division
is apparent in a society that long claimed to
have eliminated economic classes.
Remember 18 % of Chinese still live on less
than $1 a day.
China is viewed as one of the most unequal
countries in terms of income distribution in the
World
But getting Rich is Glorious right?
Deng Xiaoping thought so …
Being sighted by a survey of China’s
richest was once considered a “death
list” which lead to heavy taxation and
sometimes jail for alleged tax evasion.
China is now embracing its wealthier
population as the source for further
economic progress.
Flaunting Wealth in China

Film Producer Wang Zhongjun in his sculpture

garden
 The growing Luxury market
About a decade ago China captured only
about 1% of global sales of luxury
goods.
Today China is the Third largest high-end
buyers on earth with 12% of world sales
It is estimated that within a decade
China will surpass Japan and the United
States as the world’s top luxury market.
 Chinese Upper class Tastes
Custom clothes – Armani, Gucci, Canali
Watches (the real ones) – Rolex, Franck
Muller
Exclusive club memberships
A growing interest in ancient scrolls,
antiques, and paintings. 20% of Hong
Kong auction buyers are from the
mainland, up from nearly 0%
participation about a decade ago.
Ivory-coated mobile phone
A Change in the attitude towards the wealthy

The Chinese upper class as of the last

decade are more confident in there
position in society.
Symbols of wealth are acceptable and
desirable.
“We are more accepted by the media,
government, and society today.” ~
Wang Zhongjun
IS the growing wealth and luxury market good for
the United States?
Yes, as long as United States companies
seek to capture the markets in China.
Back to comparative advantage: The
United States economy is built on high-
end merchandise.
Balance of Trade: The luxury market is a
great way for the U.S. to balance the
trade deficit with China.
DO you think the Chinese upper class is much
different then those in the
 Sources
GLOBAL BUSINESS. (2006, Feb 6). Business Week.
Retrieved from Business week magazine:
http://www.businessweek.com/magazine/content/06
_06/b3970072.htm
Xinhua News Agency . (2008, sept 26).
China.org.cn. Retrieved from China's upper class
rises again :
http://www.china.org.cn/living_in_china/news/2008-
09/26/content_16539186.htm
Zhao, Y. (2004, Feb 29). The New York Times .
Retrieved from Week in Review:
http://www.nytimes.com/2004/02/29/weekinreview/
correspondence-class-consciousness-china-s-
wealthy-live-creed-hobbes-darwin-
meet.html?pagewanted=1