Chinese Luxury Consumers

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Transcript of Chinese Luxury Consumers

Data collected from China Luxury Market Study 2015, Economist Intelligence Unit global report by CitiBank, Grant Thornton International Business Report 2014

MARKET OVERVIEW

China - world’s largest luxury market

USD 106 billionspent on luxury in 2014

(46% of global consumption)

38%24%20%16%

ChinaItaly

USA & UKGermany

77 millionmoderately rich*

(6% of total population)

*household savings 300,000 USD

46%

CONSUMER PROFILE

well-informed through social media

value design & quality of the product

would like to see more cultural elements at exclusive events

Chinese Luxury Consumers:Young Generation (20 - 35)

in pursuit of a luxury experience more than owning a luxury product

believe that luxury goods should match their personality

love travelling & spend more time on sightseeing than shopping abroad

THREATS

Anti-corruption measureshit luxury sales by 20% in 2014

Simplified visa application procedures in favour of Chinese travelling abroad

(e.g. Japan, Korea, EU)

Fast growing e-commerce in China promotes online luxury sales

Fast paced information exchange on Online Social Media

(e.g. Weibo, WeChat, Forums & Blogs)

Limited entry for Chinese visitors to HK & anti-China protests generate negative publicity

Decrease in import taxes boosts domestic luxury consumption in mainland

Luxury outlets and overseas buying agents of luxury goods become more popular

Difficulty of establishing relationshipwith Chinese consumers

eventpre-eventpromotion

post-eventpromotion

Event is still the most powerful tool to create buzz, attract new customersas well as cement relationships with existing customers. It is now important to

couple the event with effective social media promotion.

KEY FACTORS: #Educational #Inspiring #Shareable

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