Chinese luxury goods can't compete with foreign brands

BEIJING - Despite its status as the world's second-largest consumer of luxury products, China's own luxury brands are almost nonexistent, experts said Friday.

Chinese products were few in contrast with the abundance of foreign items at a luxury commodities show that opened in Beijing on Friday.

"China has basically no top-class luxury brands, which is a regrettable situation," said Xiong Xunlin, deputy secretary-general of the China Chamber of International Commerce.

The mismatch has become even more noticeable as the nation's appetite for luxury goods has grown increasingly bigger. Xiong predicted that sales of luxury products in 2015 will reach $27 billion, which will account for more than one-fifth of the global luxury market and make China the world's biggest luxury consumer.

Xiong said that even when the global financial crisis hit in 2009, sales of luxury products in China still surged 16 percent for the year.

A recent survey carried out by the Beijing-based University of International Business and Economics showed that 68 percent of the 2,000-plus consumers surveyed believe that China does not have the capability to create its own luxury brands.

Jessica Tu, chairwoman of the Luxury Market Council (China), said Chinese brands remain weak in terms of global influence.

"They need to attach more importance to the exploration of overseas markets," Tu said.

Xiong said that while China was once the king of "luxury products" as they were known in ancient times, the country has been slow to create luxury goods that appeal to modern consumers.

"Where the country lags far behind is the creation of brands," Xiong said.

Experts interviewed at the event said Chinese rice wine, tea, porcelain and jewelry brands have the potential to become luxury- ass goods.