Luxury cars also go to the second and third tier cities in the countryside

The number of people willing to spend luxury goods in China in the next five years will increase from 40 million to 160 million, mainly from the second and third-tier cities. This is a luxury car opportunity.

“Taiyuan, Hohhot, Yan” will appear on the list of car dealers that I see at the local auto show as long as their tentacles can reach it.

However, at a closer look, the choices of these locations also have other profound implications: Here is a group of consumers who have become rich based on resource assets, where buying a car is not a deliberate result but an instantaneous decision.

This is a Beijing-based distributor that represents several top luxury car brands. In his eyes, China's annual auto show, in addition to the A-class auto show, there are nearly 200 local auto shows, and the dealer said that as long as they can participate, they will not let go.

However, in addition to the rich group, what is the charm of these second and third tier cities?

If we observe it, we can see from the real estate industry the shift in China's economic center of gravity. In the first quarter of this year, the amount of sales in first-tier cities decreased significantly, and the proportion of second-tier cities rose rapidly: first-tier cities accounted for 40% last year and now only 29%; second-tier cities accounted for 39% last year, and now it is 52%. In addition, world-renowned luxury brands have come to China for the Nuggets. Compared with first-tier cities, they are also more optimistic about the potential and future of the second- and third-tier markets.

According to the consulting firm McKinsey's report, cities such as Beijing, Shanghai, Shenzhen, and Guangzhou now concentrate about 30% of the country's wealthy people, but by 2015, 75% of the rich will live in second-tier, third-tier cities and some non-coastal cities. Because China's mainland is also booming. Goldman Sachs predicts that people who are willing to spend luxury goods in the next five years will increase from 40 million to 160 million. The main support is the second- and third-tier cities.

In all Chinese upstart luxury goods consumption, luxury car consumption accounts for 40%, followed by luxury residential spending 38%, apparel, jewelry, arts 9%, private jets 4%, luxury travel 1%, other luxury spending Accounted for 8%.

This is exactly the appetite of luxury cars. Bentley Motors has just established its 10th sales network in Kunming, Yunnan on July 22. In 2000, when it entered China, it had only 30 sales and one dealer's luxury car brand. Last year, it had 421 sales and had 10 dealers.

Of course, the market in the first-tier cities still needs to be maintained. In order to realize the goal of 1,000 units in 2011, new Bentley sales outlets will also appear in Xiamen, Shenyang, and Tianjin.

In 2009, Lamborghini sold a total of 80 cars in China, an increase of 11% year-on-year. It now appears that with the doubling of sales outlets, the goal of completing 100 vehicles this year will not be too difficult.

In April this year, Lamborghini opened its seventh and eighth dealerships in Shenzhen and Xiamen. At the end of this year, Chongqing will also be the first dealership in the west. In addition, new distribution stores will also appear in Qingdao and Dalian.

As another luxury brand, Rolls-Royce sold only 678 vehicles from January to May this year, an increase of 146% year-on-year. Although the current sales network is inferior to Bentley, it has a very good effect on the distribution of Chengdu, Shenzhen, and Hangzhou. obvious.

I admire the vision of this dealer. At present, China is already the second largest luxury goods market in Asia, and in a few years it will probably replace Japan in the first place. According to analysis, as of 2008, the number of Chinese households with an annual income of over 80,000 U.S. dollars is 1.6 million. By 2015, this number is expected to soar to 4.4 million. By then, the number of Chinese rich people will leap to the world. Fourth place.

With the development of the luxury goods market in China's second- and third-tier cities, products such as premium luxury cars are no longer the fastest-growing in China. They are Chengdu, Harbin, Dalian, Chongqing, Xi’an, Wuxi, and Wenzhou. Ningbo and other cities.

So, in the fully mature Chinese market, for these luxury car brands, they should find ways to let more consumers see themselves, understand themselves and buy. Going to the countryside is indeed a good idea.