The new horizon of luxury
By 2025, the Chinese population will represent 40% of luxury consumers*. These new customers will transform the consumption patterns that the luxury sector has experienced until now.
In general, the new luxury customers are young, and this is even more true for Chinese consumers, since 68% of them are between 18 and 30 years old*. The millennial generation is more connected, more sensitive to ethical and environmental issues: they expect a lot from luxury brands. Much more than just looking for a product, they are looking for an experience and ultra-personalisation. These are profiles that influence and are influenced by their social environment (influencers, social networks, fashion trends, etc.).
Young Chinese people’s interest in digital is also explained by the fact that 58% of them live outside major cities, making access to luxury shops more difficult*. So before going to a shop, they get information online by using more and more live streaming, a growing practice reinforced by the health crisis.
THE IMPACT OF THE HEALTH CRISIS
Before the border closure, Chinese customers used to buy their luxury goods when travelling in Europe because of the tax-free policies that made prices more attractive. However, with the health crisis, luxury brands have been forced to accelerate their digital and e-commerce transition to keep in touch with their customers. Social networks, and more specifically WeChat in China, have been one of the powerful levers for meeting the expectations of their young, connected clientele who want to be close to the luxury brands.
A LOCAL PRESENCE
The end of international tourist travel has encouraged Chinese customers to consume more locally. Initially online, thanks to the development of distance selling techniques such as live shopping, and then gradually back in shops with the deployment of luxury brands on Chinese territory, encouraged by policies to lower customs taxes and harmonise prices.
Setting up or developing in China is not that simple; it is essential to work with good partners who have the specific cultural and legal codes. In China, digital and e-commerce are already well established and codified, particularly with the use of WeChat for many functions from communication to payment.
China represents an incredible growth opportunity for the luxury sector in the years to come. It is therefore essential to put in place an omnichannel strategy covering a range of domains in order to respond to all the specificities of this market.
Octipas, a subsidiary of the ChapsVision group, helps you to implement a 360-degree strategy to meet the challenges of today and tomorrow.