As the Chinese luxury market matures, meeting consumers’ changing needs is becoming more complicated. According to a Skift article, a new study by Bain & Company found that the priorities of the Chinese luxury market are quickly shifting.
The article states that there are three key factors responsible for the change:
- Overexposure to Luxury. With many luxury brands heavily investing in China, their presence went from being a novelty to becoming the norm. This has caused consumers to desire something new.
- Digital and Mobile Proliferation. The majority of Chinese consumers get their buying information online or through mobile apps.
- Shift to Experiential. Chinese consumers have begun shifting from purchasing luxury goods to purchasing luxury experiences, like lavish vacations.
It was previously common to see Chinese consumers purchasing anything and everything stamped with a luxury label. However, they are now becoming more discerning with their purchases and opting to spend money on art and travel.
There is also a growing trend of Chinese consumers preferring to buy luxury products in their home market, due mostly to lower prices. However, the wealthiest Chinese consumers still frequently travel abroad for shopping experiences.
The Bain & Company report highlighted new consumer groups in China companies should pay attention to: working women, the growing urban middle class (many of whom live in second and third-tier cities) and millennials. Chinese luxury consumers are educated travelers, tech-savvy and are younger than their European and American counterparts.
To read more, please see: The Changing Habits of the Chinese Luxury Consumer.