Business

Forget brand names -- it's all about the experience

By Lu Chang (China Daily)
Updated: 2010-08-20 16:50

BEIJING - A romantic candlelight dinner on an secluded island in Italy is just what Edward Wang wanted to give his wife for their eighth wedding anniversary.

Last summer, the couple embarked on a tour arranged by Dream It, an Italian company that offers customized holiday experiences to Europe and the United States.

It was an eight-day holiday trip from Florence to Elba Island in mid-west Italy.

As soon as they arrived at the airport in Florence, they were picked up by a helicopter and taken to Elba Island. Ahead was a romantic evening with a candlelight dinner, right after the helicopter landed.

The whole trip, including a villa accommodation in Ferragamo Village in the Tuscany countryside, cost 300,000 yuan ($44,170).

"The big draw of such a vacation is not about the destination, but the experience itself," said Wang. "The usual tourist spots do not appeal to us, because what we want is a journey specialized for us."

Wang, who is in the property industry, is among a growing number of Chinese super-rich who no longer keep their eyes for luxury products such as perfumes, watches, apparel, bags and cars, but at high-end services.

Zhu Mingxia, a professor and director at research center for luxury at the University of International Business and Economics in Beijing, said experience consumption is a kind of new tendency among Chinese rich people, despite the fact many consumers are still keen on buying luxury products to identify themselves with world-famous brands.

"As China's luxury market is growing, some Chinese consumers are no longer satisfied with only top brand-name purchases," said Zhu.

"Experiences such as living in a seven-star hotel, high-end customized trip, and private yachts and jets are what they are looking for."

Zou Wenwen, chief operating officer of Dream It in China, said it has received requests for specialized itineraries from more than 100 clients this year, double what they had in the first half of last year.

"Most of our clients are successful leaders from different industries, who have special needs for the quality of their lives, so what we offer is not just a journey but a life-time experience," said Zou.

Living in an old castle or in hotels opened by Italian princesses, having dinner with celebrities or traveling in big balloons is not a problem, Zou said. "No matter what you need for your trip, we can always satisfy you."

Zhu said it is very different from the past when buying luxury items is all about "face". The super rich is now more concerned about the "feelings" they can get.

"The majority of China's luxury consumption is for the consumer to show off, and not to pursue a higher quality of life," said Zhu.

"This new kind of experience, or service consumption, is a step ahead, which means that there is a huge potential market for yachts, customized travel and seven-star hotels."

However, it doesn't mean the Chinese market has become mature, she said.

"Compared to many developed countries, Chinese luxury consumers tend to be less sophisticated and less brand-savvy," she said.

"I'm sure that Chinese luxury market still has a long way to go."