2011 Bain China Luxury Market Study

Total luxury spend by mainland Chinese reached RMB212B in 2010; ~60% spent outside mainland Total China luxury spend (RMB B) 156 CAGR (09-10) 36% 212 100% Overseas (Rest of world) 38 Overseas (Rest of world) 52 38% 80- 60- HK & Macau 50 HK & Macau 72 45% 40- KEY HIGHLIGHTS Overseas (including HK/Macau) spending showed strong growth; HK & Macau account for >50% of oversea spend - Trend expected to continue in 2011/12 -Driven by RMB appreciation and increased oversea travels • Purchase in Mainland continued to increase, however still <50% "The price gap between domestic & overseas remains; and with RMB appreciation, consumers are travelling abroad more and buying a lot overseas. // VP, Luxury watch distributor Mainland 68 20- Mainland 87 27% 0 2009 2010 Source: Bain Survey of Luxury Goods Consumers in Mainland China 2011 (n=1,959) This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent SHA JUOJ LOUIS VUITTON 2011 Bain China Luxury Market Study_Media release_vf 4

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