Back to School Means Big Business

Jing Daily believes that “sending a child abroad to study is considered the ultimate luxury purchase.”

According to the Hurun Report, “85% of Chinese high net worth individuals and 90% of ultra high net worth individuals plan to send their children abroad for their education. The U.S. is the top destination (27%), followed by the UK (22%) and Canada (15%).”

Importantly, spending on overseas education also generates increased investment in travel, real estate and luxury goods. One of my clients, a French luxury goods company, realized that its promotions were better targeted to reaching affluent Chinese students at my alma matter, Harvard Business School, than investing in Chinese New Year celebrations.

This was because their friends and family networks anointed it as the authority on overseas lifestyles. As a result, it exerted significant influence on luxury purchases. According to Jing Daily, “74% [of overseas Chinese students] are asked for their advice on luxury purchases by friends and family at least once a quarter.”

Importantly, overseas Chinese students are buyers.   According to China Luxury Advisors, “96% of students surveyed said that they purchased luxury goods to take home at least once a year. But here’s the kicker: among this influential group, only 25% have been contacted by luxury brands during their stay overseas.”

Lesson Learned:  Cultivate overseas Chinese students as your consumer as they will likely have as much influence on luxury purchases as a posse of 50-something Chinese executives.

Tags: affluent, china
Recommend (5)
3 comments about "Back to School Means Big Business ".
  1. DON KELLOUGH from Freedom 55 Financial , September 5, 2012 at 11:37 a.m.
    My name is Don Kellough a Corporate Protection Specialist with Freedom 55 Financial specializing in working with successful business owners and upper middle income earners and high net worth families on how to create tax free income and enhancing the value of your hard earned money tax free also. Most people have no idea what life insurance can for them financially and think that life insurance is only good when they die. They could not be further from the truth. Life insurance can be used to create a 100% tax free retirement income plan, an education for their children and all this can be tax free at anytime during their life and the equity or cash value is not locked in until death.
  2. Philip Rist from Prosper Business Development , September 5, 2012 at 12:04 p.m.
    Patracia is 'spot on'. Understanding the intersection between the US and China consumer markets should be the most important strategic initiative for marketers. Complimentary insights are available at: http://www.prosperchinaic.com/chinainfo/
  3. Philip Rist from Prosper Business Development , September 5, 2012 at 12:16 p.m.
    Sorry for the typo Patricia