China’s luxury market is changing fast as young consumers born between 1990 and 2000 now dominate with 50% of the sales, and that percentage is bound to rise fast. Consumer marketeer Ashley Dudarenok gives four major tips to keep hold of this market in the Jing Daily.
Chinese consumer desire for luxury goods is expected to continue to grow in 2022 at an estimated rate of 13 percent, making them the highest spending global consumers. By 2025, Generation Y and Z will account for more than two-thirds of the market. Gen Z, China’s youngest spending generation, are digital natives that have grown up with material abundance. And they are willing to pay a premium for fresh and niche experiences.
As such, luxury brands will continue to leverage digital opportunities over the coming years to provide consumers with unparalleled shopping experiences, using innovative technology like NFTs and AR-powered digitalization. Yet, offline purchasing remains the most important sales channel, making up over 50 percent of all consumption.
Online channels provide consumers with multidimensional avenues for communicating and resonating with luxury brands. Meanwhile, offline channels give consumers physical product and service experiences that online services cannot replace. But integrated online and offline channels create an unmatched level of user stickiness, helping brands build loyalty among future consumers.
Are you looking for more experts on China’s luxury market at the China Speakers Bureau? Do check out this list.