Supplying Luxury to Wealthy Chinese
Sparkle Roll Group Ltd. might not be a name many auto enthusiasts are familiar with. But the Hong Kong-listed distributor of luxury goods in China—from Parmigiani watches to Lamborghini cars—is an auto-industry record holder. Last year, Sparkle Roll’s Beijing dealership sold more Rolls-Royce and Bentley cars than any other in the world (223 and 253 respectively), according to the auto makers.
In the six-month period ended Sept. 30—the most recent figures available—the company said profit was 142 million Hong Kong dollars ($18.3 million) up 73% from HK$82 million a year earlier. Car sales were particularly strong, making up 93% of total revenue, the company said.
Ivan Tong, chairman of Sparkle Roll Group Ltd., speaks of dealing luxurious goods such as Rolls-Royce in China, Hong Kong, Feb. 22, 2011. He states that according to a 2010 Hurun report, the wealthy in China are 15 years younger than in the West. And mostly, we see that too. For sports cars, the average age of the buyer is in the early 30s. For limousines, we see people around 40. I can’t tell you [their net worth] but they are very rich people who can spend 10 million to 15 million yuan (about $1.5 million to $2.3 million) in a day to buy a car. Our average price for all brands is 5 million to 6 million yuan, excluding value-added tax, which is paid by the car owners.
China’s Growing Luxury Market – No. 1 in 5-7 Years
Chinese Luxury Goods
You can see that this is the case anywhere you go. From NYC to Venice, Italy, all of the designer shops are catering to the Chinese because they have the money to indulge!