A new study by global management consulting firm Bain & Company has found that the priorities of the maturing Chinese luxury market are changing rapidly, due in part to an overexposure to luxury over the past ten to fifteen years, turning luxury as a novelty to becoming the norm.
China has become the most advanced retail e-commerce market in the world, with 78% of consumers getting information on luxury goods online or via apps, and consumers have also started to shift spending from luxury goods to luxury “experiences”, especially through high end travel. Spending on out-of-home luxury experiences is second only to the growth in outlay for luxury cars.
While Chinese consumers prefer to buy luxury products in their home market, the wealthiest Chinese luxury consumers are travelling and buying abroad, opting for more understated elegance, design-focused discerning choices, and looking beyond classic luxury labels.
The new wave of consumers to which luxury marketers should pay heed are working women, urban middle classes and millennials.