Louis Vuitton, Cartier Are Preferred by Chinese, Survey Shows

July 7 (Bloomberg) -- Louis Vuitton and Cartier are the top choices of Chinese consumers for purchases as their thirst for luxury goods remains unabated in the global economic crisis, a survey commissioned by Ruder Finn Asia showed.

Consumers in smaller Chinese cities will be the key in sustaining growth for luxury goods in the world’s most populous nation, Christophe Cais, executive director at Albatross Global Solutions, the market research company which conducted the survey, told reporters in Hong Kong today.

“The brands need to understand they need to pay the same level of importance to the second-tier cities as they do for the first-tier cities,” Cais said in an interview. “We don’t see any sign that this market is going down.”

Chinese retail sales rose 15 percent in May, the fastest pace in four months, indicating domestic demand is helping the country weather the global recession. The survey of 1,000 consumers showed Louis Vuitton to be the preferred brand for fashion and accessory, and Cartier for watches and jewelry in mainland Chinese cities.

The survey was conducted in April and May among consumers with an average annual income of 240,000 yuan ($35,124) from 21 cities, including Beijing, Shanghai, Guangzhou and Hong Kong.

Chanel is the preferred fashion and accessory brand in Hong Kong, and Cartier for watches and jewelry, the survey found.

Chinese consumers typically prefer European brands as tradition and craftsmanship play a role in their decisions, Cais said.

“People expect heritage, a story to tell,” Jean-Michel Dumont, chairman of Ruder Finn Asia, said.

To contact the reporter on this story: Wing-Gar Cheng in Hong Kong at wgcheng@bloomberg.net

To contact the editor responsible for this story: Frank Longid at flongid@bloomberg.net