SHANGHAI: China will account for one-third of the estimated $ 175 billion global market for luxury goods by 2015, as growing wealth spurs demand for top-end goods, consultancy McKinsey said yesterday.
Chinese consumers now account for around 27 percent of worldwide luxury consumption, estimated at around $ 145 billion this year, the global management consultancy firm said in a new report.
"Spending by Chinese consumers on luxury products now exceeds that of any other country," said the report, which surveyed more than 1,000 luxury shoppers in 14 Chinese cities.
"China has become the paramount driver of growth in this sector, with purchases by Chinese both at home and abroad accounting for over one-quarter of the global total."
The figure includes spending on items such as high-end bags, shoes, watches, jewelry and clothing.
A slowdown in the Chinese economy and a crackdown on government corruption, which has affected gift-giving, has caused the market to cool this year, but China's wealthy and rising middle class will support future growth, it said.
The market for luxury goods is changing as more Chinese travel abroad and consumers seek more varied brands, McKinsey said.
"A rapidly-growing share of Chinese luxury shoppers are doing their purchasing abroad," it said. "Although Hong Kong and Macau rank among their favored shopping destinations, Europe is also rising quickly in popularity."
High taxes can make imported luxury goods more expensive in China, while the relatively weak euro can make shopping in Europe more attractive.
Chinese consumers still prefer shopping for luxury goods at retail stores, making creating an in-store experience important for companies, with online sales still relatively small, the consultancy said.
"Chinese consumers' tastes in luxury products are maturing with surprising speed," it said, adding experienced shoppers "increasingly prefer low-key and understated goods to ones that are emblazoned with popular logos."
China to claim one-third of luxury market: Survey
China to claim one-third of luxury market: Survey
Saudi Dar Al Arkan, Trump Organization unveil 1st Riyadh project in Wadi Safar
RIYADH: Saudi developer Dar Al Arkan and its international unit Dar Global have unveiled the first of two Trump-branded projects planned for Riyadh, launching a 2.6 million-sq.-meter Trump International Golf Club in Wadi Safar.
The project follows a joint announcement in December 2024 by Dar Al Arkan, Dar Global and The Trump Organization to develop two Trump-branded assets in the Saudi capital. It marks The Trump Organization’s first venture within the Diriyah development, one of the Kingdom’s flagship giga-projects, according to a press statement.
The development aligns with Saudi Arabia’s Vision 2030 goals to diversify the economy away from oil and attract foreign direct investment.
It also comes as Saudi Arabia plans to allow foreigners to own property in designated areas for the first time, starting this month.
In a statement, Eric Trump, executive vice president of The Trump Organization, said:
“We are proud to expand our presence with this landmark development in Wadi Safar. Trump International Golf Club, Wadi Safar will redefine luxury and excellence in the region, setting a new standard that reflects the brand’s enduring commitment to quality, prestige and timeless elegance.”
He added: “We look forward to creating a destination that complements the rich heritage of the region while delivering a global standard of luxury living.”
The Trump International Golf Club, Wadi Safar, will be developed as a gated community featuring a championship golf course, a luxury hotel and premium residential units overlooking surrounding wadis and fairways.
“This new project represents a vision to deliver a destination that captures the prestige and the legacy of the Trump brand. With Dar Global leading the development, we are confident this will become a flagship destination not just for Saudi Arabia, but for the world,” said Yousef Al Shelash, chairman of Dar Al Arkan.
The project will combine top-tier hospitality, design, and lifestyle offerings in a setting that reflects Saudi Arabia’s cultural and natural heritage.
Ziad El Chaar, CEO of Dar Global, said the company is proud to collaborate with Diriyah Co. and Dar Al Arkan on the development of the new site.
“We have delivered landmark projects across Europe and the Gulf Cooperation Council in partnership with globally recognized luxury brands. Bringing this experience to the Diriyah project, we will deliver a destination that combines heritage, elegance, and world-class standards, making Trump International Golf Club, Wadi Safar a truly iconic address,” El Chaar said.
Saudi Tourism Minister Ahmed Al-Khateeb said in a post on X that the project represents a milestone partnership and reflects momentum in developing destinations to international standards.
“From Wadi Safar in Diriyah, we laid the cornerstone for the Trump International Wadi Safar project within the Rayana Wadi Safar masterplan, which includes the launch of the Trump International Golf Club, alongside a Trump-branded hotel and a collection of luxury mansions,” he said.
Al-Khateeb added: “A milestone reflecting strong delivery momentum in developing destinations to global standards, underscoring Saudi Arabia’s growing appeal as a leading destination for tourism and investment through high-calibre international partnerships.”
Located on the outskirts of Riyadh, Wadi Safar in Diriyah is among Saudi Arabia’s most scenic and strategically important areas. It is envisioned as an upscale enclave that aligns with the wider Diriyah master plan, a central pillar of Vision 2030 aimed at economic diversification and enhancing the Kingdom’s global standing.
