China Goes Decadent With 'Millionaire Fair'

June 4, 2007 — -- China's elite toasted and celebrated their wealth at the second Millionaire Fair, which was held over the weekend in Shanghai. The event hosted 14,000 discerning shoppers interested in high-end luxury goods.

The three-day event bills itself as a luxury lifestyle exhibition that serves wealthy individuals with an appetite for decadence.

The event targets affluent consumers and is a product of Millionaire, a magazine dedicated to the finer things in life. "The event is actually an umbrella with the best products the luxury industry has to offer," Yves Gijrath, the publisher of Millionaire, said.

This year's event featured over 100 luxury brands such as Boucheron, Jaguar, Remy-Martin and Chopard. Items ranged from the lavish to the extravagant like a diamond-encrusted cell phone for $3.5 million. There were less expensive options: a gold-plated, musical Swiss watch, selling for $2 million.

China's booming economy is creating an upwardly mobile social class with money to burn. "Luxury brand prestige is on the agenda for consumers," remarked Jef Harris, the president of ICLP, an agency that specializes in loyalty marketing. "What consumers want is recognition in their brand."

China has an estimated 250,000 millionaires, ranking it sixth in the world, according to the Boston Consulting Group. Goldman Sachs reports China's luxury goods market was worth $6 billion in 2004.

The event brought out China's social elite and business moguls including China's richest man, Li Ka-shing, affectionately dubbed the Donald Trump of China because of his extensive real estate holdings.

The fair began in 2002 in Amsterdam and has since expanded all over the world. Upcoming fairs this year will be held in Cannes, Moscow, Amsterdam and Dubai.

Although the fair enjoys great success abroad, developed countries are saturated with luxury goods. There are no plans to bring the fair to the Unites States.

"It will be difficult to surprise the Americans," lamented Gijrath.

Reuters contributed to this report