China is the Next China

Members of the press and industry leaders frequently ask me?‘where is the next China?’, referring to this market’s?size and significance within the luxury sector. Given that this expansive and diverse country represents one of the biggest regions in the world by volume and Bespoke for our brand, my answer is simple. China is the next China.?

Today, as we present Spectre at the biennial Auto Shanghai motor show, I am more convinced than ever of China’s growth potential and ongoing vibrancy demand for Rolls-Royce products is strong, supported by a population of high-income consumers that is set to double by 2030.?

But success here requires crucial local knowledge. For some years, economists have applied an unofficial?‘tier’ system to cities in China. Of course, the country’s main economic powerhouses are?‘Tier 1+’ cities?–?Beijing, Guangzhou, Shanghai and Shenzhen. Yet, China’s ’New Tier One’ and ’Tier Two’ cities are now critical emerging luxury centres.?

I have seen plans for everything from super-luxury residential communities to major retail developments opening in emerging cities like Hangzhou, Chongqing and Kunming this year alone. Even?‘third tier’ cities such as Haikou, capital of Hainan Province, will gain the presence of some large European luxury houses in 2023.?

For this reason, alongside our flagship operations in Tier 1+ cities we have an established presence in many New Tier One and Tier Two cities. Here, we cater for an ever-younger demographic of ascendent entrepreneurs who are leveraging opportunities in growth industries such as software, E-commerce and domestic tourism. The all-electric Spectre is exactly what this new generation seeks: a highly contemporary expression of the Rolls-Royce brand that is perfectly in tune with the times.??

Equally, in Tier 1+ cities there is substantial demand for ever more personal luxury commissioning experiences. Globally, the top 2% of luxury customers account for around 40% of luxury sales, and China’s luxury market typically attracts a high concentration of?these individuals.?This is why today, we have announced that later this year we will be opening our Private Office Shanghai, where a designer and client experience manager trained in Goodwood will collaborate with our Chinese clients to being their dream Rolls-Royce to fruition.

Indeed, Bespoke is more important than ever in China. A recent report found that 52% of consumers from the mainland seek luxury goods with strong links to Chinese artisans and local craft disciplines. Bespoke offers our clients a platform for meaningful collaboration with regional creatives, giving our products an authentically local dimension.?

I remain hugely energised by this market, which develops more quickly than anywhere else on Earth. I look forward to sharing more exciting products and business news soon as my team continues to inspire greatness in this vibrant and dynamic region.?