China, the biggest luxury market in the world, is more diversified than ever. This white paper explains how to connect with this increasingly sophisticated audience.
Arguably, China’s luxury market is the largest in the world, not only because of the increasing transactional value of luxury goods sold within China but also because Chinese luxury purchases abroad contribute massively to the global revenue of luxury brands. It is growing faster than any other luxury market.
However, growth in China’s luxury consumption is not uniform: within the growing class of affluent Chinese consumers, some contribute more to the growth of luxury goods, while others are more interested in luxury experiences. There are others that are becoming more and more hesitant to purchase luxury altogether – even though they clearly could afford it – which indicates the development of a more discerning attitude towards the category.
Therefore, it is critical for luxury brands – Chinese and Western brands alike – to understand how to win Chinese luxury consumers over. Brands need to understand the historical legacy and the cultural nuances that influence how luxury is perceived in China today and what affluent consumers are expecting from luxury brands.
In this white paper, we reveal a bespoke luxury segmentation – developed in partnership with China’s leading luxury research provider, Sinomonitor, and endorsed by ELLE – that unlocks the China luxury market like never before. Our typology will serve as a guide for marketers who want to understand how to drive further growth for their luxury businesses.