trends of Chinese luxury market

Top 4 Trends in Chinese Luxury Market

1. Analysis of people structure

The Chinese generation after 90s has become the mainstream of Chinese luxury market goods, accounting for 50% of the consumer population. In the next years, consumption will continue to grow by 25-30%.

The existing high consumer group is still an important contributions. People who spend more than RMB300,000 yuan (around USD50,000) a year for 11% share of the total population, but they account for 40% of the market. Their consumption keeps increasing by 25-30% every year, and they are willing to increase their consumption for brand service and value.

Overview of the people diagram: Based on the age and spending power of the people, I anchored two types of consumer groups that the luxury market focuses on (mild/moderate and heavy consumers born in the 1990s).

2. Consumption philosophy

The Chinese generation after 90s pays more attention to self-reward: The new generation of consumers are self-conscious and their purchases are driven by social networks, which drives luxury purchases to value “self-reward” and “brand service/experience”.

Increased brand mobility: Fewer than 40% of consumers say they are loyal to a particular brand.

3. Category structure

Keep casual and value: They prefer more expressive clothing, casual shoes and high-value products with value.

4. Channel preference

The importance of building digital ecology continues to grow: The sales contribution of online channels is expected to increase from 20% in 2020 to 22% in 2011.

Brand apps are more popular with the Chinese generation after 90s: Brand apps have attracted more consumers from the generation after 90s with strong spending power, and their consumption is expected to increase by about 30% in the next year.

Grasp digital marketing trends of Chinese luxury market and focus on consumers

In the critical period of generation transition, understanding the psychology of the new generation of consumers, grasping two important consumer groups, and exploring five types of forward-looking digital marketing practices will be the key to the success of the brands in the short and medium term in the future.

As the social retail ecosystem continues to evolve, we are also seeing companies mature and innovate in the use of new digital marketing tools. Some brand pioneers, bold innovation around the social media platform, has achieved surprising rewards. Some rely on digital technology to improve services and enhance the stickiness of heavy consumer groups; Some enjoy the first wave of bonus of youth through intelligent technology, and more importantly, establish the mind of brand youth.

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