China is a luxury superpower

4.3
China is a luxury superpower

Chinese consumers are the driving force behind luxury shopping around the world.

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Most western brands find it difficult to understand China's luxury market. China is now the second largest economy in the world, after the U.S., in terms GDP. Middle-class consumers are buying goods they can't afford due to their low incomes. It isn't as simple as it seems to enter the Chinese market. Even the most well-known brands need to carefully plan their strategies to adapt to Chinese consumer tastes and habits. They also need to adjust their marketing strategies to Chinese e-commerce platforms. We will discuss why it is crucial to have an effective e-commerce strategy in order to sell luxury goods to China. We'll also share some tips on how to attract Chinese customers and be successful with e-commerce platforms.

China is the leader in luxury worldwide

This market has great potential and is proliferating. All businesses can benefit from understanding the new dynamics and gain insight into these young consumers' purchasing power and aspirations.

The explosion

China's luxury spending will nearly double between now and 2025. This is due to an increase in luxury spending by the upper-middle classes, which is most of China's luxury-spending customers.

Generational differences

Companies will be able to find young spenders who are open to new ideas and the wealthy with deep pockets, and those with real wealth.

Luxury vanguard

Luxury buying is a growing trend in China, thanks to the country's post-1980s wealth generation. They were born in China's economic boom and now have the best careers and incomes. They travel often and enjoy spending to show their individuality and success. The post-1990s generation is the new powerhouse. They are the vanguard of China's urban middle class spenders and are a vibrant, digitally engrossed group.

Newcomers and Status Seekers

There are four distinct buyer groups in China's post-1980s- and post-1990s generation. The most loyal luxury newcomers to China are brand-lovers, while the status-shoppers are less brand-oriented. They account for 70% of the luxury market's young generation. These luxury connoisseurs are often business owners or have substantial family wealth. Young, confident spenders look for the latest and greatest rather than brand-name products.

Do more than just brand

First, Companies must think beyond the boxes of their brand. Brands are essential in influencing the tastes of generations. Younger consumers may still be brand-conscious, but they're not as loyal as their older counterparts. Younger consumers are more open and willing to explore new luxury experiences outside of their brands, and they tend to move through them quicker than older, more loyal customers.

Social media is more popular with younger buyers.

Be a leader

Second Luxury companies must attract the attention of influencers to be able to receive the digital attention they deserve. Media is everything, and social media is everywhere. Digitally savvy consumers younger than 25 can easily navigate between channels and get better deals. Digital media can be used to conduct extensive research before they make a purchase. Whether they are from China or elsewhere in the world, these celebrities have a significant influence on these consumers. They want personalized digital experiences. This includes online interactions, apps that increase engagement, and apps that use gaming to enhance them.

Closed the sale

Finally is just as important as digital for companies to sell brick-and-mortar. Nine out of ten Chinese youth consumers prefer to interact in brick-and-mortar stores, despite their digital love. Rethinking in-store experiences is a must for brands. Young customers want to feel different and valued. It should be treated as its own media channel. This will enable better execution in various brand stores, premium malls, and duty-free shops.

Further reading

Jingdaily

FashionMag

Mckingsley

Marketing-Chine