According to the CEO of the Oettinger Davidoff Group Hans-Kristian Hoejsgaard, growth of the cigar category in China is expected to outpace the rest of the world by 2014.

 

Hoejsgaard says that although the world cigar market is expected to grow by 4%, he expects the cigar category to increase by 20% in China in the same period of time.

 

He made these forecasts during his presentation entitled ‘Luxury in China’, at the China’s Century conference in  Beijing this week where the CEO also highlighted the differences between Swiss and Chinese luxury goods consumers.

 

Hoejsgaard believes that the cigar would be accorded ‘special importance’ in the booming Chinese luxury goods market in the coming years. “Whereas the world cigar market is expected to rise by 4% in 2014, it will explode in China with a growth of 20% in the same time frame.”

 

CHINESE SPENT $50BN ON CIGARS IN 2011

Hoejsgaard was referring to premium products in the smokers’ requisites segment. China will then be the third-largest sales market for cigars, trailing the USA and Germany.

 

According to his research, the Chinese, had already purchased luxury goods worth around US$50bn in their own country in 2011; a similar amount was spent abroad on the purchase of luxury goods by Chinese tourists.

 

Oettinger Davidoff says that it is therefore “watching and canvassing the Chinese market carefully”, taking particular account of the cultural differences between Western and Chinese luxury goods consumers when formulating its marketing strategies.”

 

“A Swiss person buys luxury goods that appeal to him personally; a Chinese person, on the other hand, those with which he can impress others”, said Hoejsgaard.

 

[Lead image: Hans-Kristian Hoejsgaard, President & CEO Oettinger Davidoff Group Right: Mr Hui Peng, President of China Duty Free (CDF)]