Luxury Portable Consumer Electronics in China

PROSPECTS

Sales of luxury mobile phones continue to decline in China

Sales of luxury mobile phones declined again in China in 2018. Chinese consumers have a growing affinity with domestic mobile manufacturers Huawei and Xiaomi, and these Chinese brands are taking sales away from international smartphone manufacturers, such as iPhone.

Luxury smartwatches with fitness tracking boom in popularity in China, backed by a fitness craze that mainly involves running

A large proportion of the rising number taking up running are from the country’s rising middle class. They are young and well-off, living in urban areas where the pace of life is extremely fast and there are increasing pressures.

Fitness tracker use to extend to other sports

The booming popularity of running among millennials strongly benefits sales of luxury smartwatches with fitness trackers, thus giving momentum to this product area. Luxury wearables are expected to continue to record growth given that running is only the beginning of the Chinese fitness craze and such demand will expand to other sports.

COMPETITIVE LANDSCAPE

Luxury brand Vertu plots a comeback and partners with JD.com to boost sales in China

Despite the early announcement of the bankruptcy of the luxury mobile phone player Vertu and the closure of its UK plant, Vertu changed its brand name in China and partnered with the Chinese e-commerce giant JD.com.

Top performers launch new eye-catchers

Regarding luxury mobile phones, Vertu suddenly announced its new model called Constellation X in China, for sale at CNY39,800 through JD.com.

Apple innovates

With regard to luxury wearables, Apple Watch is the leader in terms of luxury smartwatches with a fitness tracker. In 2018, Apple introduced Apple Watch Series 3, adding a built-in mobile phone to its smartwatch.

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