Every education comes with a price, and for Chinese parents, an overseas education is the ultimate luxury purchase (Jing Daily).
Jing Daily, devoted to the business of luxury and culture in China, showed earlier in 2012 that spending on education is the “third-largest class of spending among Chinese high net worth individuals.”
Annual Chinese high net worth consumption averages 1.45 million yuan (US$229,648), of which 12 percent goes to their children’s education. And this number only represents direct spending on education, not the accompanying investments in travel, real estate, cars and luxury goods that go hand-in-hand with overseas study.
For China’s high net worth individuals, according to the Hurun Report on Chinese luxury consumption, the US and the UK are the two top destinations for their children’s overseas educations (27 and 22% respectively), followed closely by Canada (15%). (Good.is has a great infographic showing existing data on China’s export of students.)
Chinese students studying abroad are recognized by their peers as authorities on overseas lifestyles, and can exert significant influence on their extended social networks back in China.
a kid from Xiamen studying at a Connecticut prep school will likely have as much influence on luxury purchases as a posse of 50-something Chinese executives.
So, whether you are a handbag or a school, the overseas Chinese student community is a demographic to engage and mobilize for their great word-of-mouth potential.