Market research suggests that Yu's approach could be right. According to McKinsey's 2017 China Luxury Report, Chinese luxury consumers spend more than 500 billion yuan annually and account for almost a third of the global luxury market. The report also said that around 7.6 million Chinese households purchased luxury goods in 2016, with each of these families spending an average of 71,000 yuan on such products per year.
"Although wealthy Chinese consumers have become more sophisticated, they remain cautious, needing reassurance about the quality and authenticity of their purchases," the report said.
"We found that these are the top two factors for selecting where they choose to make their purchase."
