China Becomes World`s No. 2 Buyer of Luxury Goods

China ranked second in the world last year in purchases of high-priced luxury goods, the English-language newspaper China Daily said yesterday.

The state-run newspaper said only some 100 super-rich people with assets of at least a billion yuan (143 million U.S. dollars) in mainland China can afford a private jet.

In the article headlined, “The super-rich have a craze for luxuries,” the daily said they are among the world`s top buyers of luxury goods, lavishing their money on all kinds of expensive goods ranging from pricey handbags and wallets to private jets and top-notch vehicles.

Their most popular brand is Louis Vuitton, followed by Cartier, Chanel, Hermes, Gucci, BMW and Mercedes-Benz. When these affluent consumers buy luxury items, they usually say they are “gifts,” a source at Luxury Asia Limited China said.

Last year, rich Chinese spent 9.4 billion dollars on luxury goods, making China the world`s second-largest buyer of luxury goods, second only to Japan, according to a report by the World Luxury Association.

China`s super-rich bought 27.5 percent of the world`s luxury goods last year, China Daily said, suggesting it is only a matter of time before China ascends to the top spot.

The paper said the luxury goods craze in China is due to the rise of a nouveau riche generation that made a fortune in property and stock investments.

bonhong@donga.com