China Affordable Luxury Market Report 2021
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Report Summary
“Affordable luxury has become a lifestyle for consumers pursuing more rational and exquisite lives. Meanwhile, consumers are paying more attention to the environment. They are more attracted by brands that are dedicated to social responsibilities. The luxury market used to be dominated by foreign brands but consumers now are looking for more domestic brands. As long as domestic affordable luxury brands integrate their local cultural advantage with sustainable environmental protection, they may win strong affinity among local consumers.”
– Jocelyn Dong, Research Analyst
Key issues covered in this report
- Purchase behaviours of affordable luxury products
- The channels consumers use to purchase and collect information on affordable luxury goods
- Price preference when purchasing affordable luxury goods
- Influencing key factors when buying affordable luxury
- Consumers’ attitudes towards buying affordable luxury
Table of Contents
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Overview
- What you need to know
- Key issues covered in this report
- Covered in this report
- Excluded
- What you need to know
-
Executive Summary
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- The market
- Convenient online shopping
- Rising pursuit of specialness
- Companies and brands
- Win consumers’ trust by promoting sustainable concepts
- Interactive experiences driving sales
- Smart digitalization solving pain points
- The consumer
- Affordable luxury is catching up
- Figure 1: Affordable luxury products bought, 2021
- Traditional channels retain attention, niche platforms emerge
- Figure 2: Purchasing channels for affordable luxury, 2021
- Online marketing remains popular
- Figure 3: Sources for getting information about affordable luxury, 2021
- Affordable jewellery getting attention
- Figure 4: Preferred price for purchasing affordable luxury products, 2021
- More emphasis on spiritual ideas
- Figure 5: Reason for purchasing affordable luxury, 2021
- Higher expectation with solid support
- Figure 6: Attitudes towards affordable luxury, 2021
- What we think
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Issues and Insights
- Affordable customization provides a sense of ceremony
- The facts
- The implications
- Figure 7: Michael Kors X Tmall super day, 2021
- Domestic brands looking for integration of culture and tech
- The facts
- The implications
- Affordable athleisure may prevail
- The facts
- The implication
- Figure 8: Coach X Champion concept store in Chengdu, 2021
- Affordable customization provides a sense of ceremony
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Market Factors
- Growing consumption power drives affordable luxury market
- Ritual consumption gives new meaning to consumption
- eCommerce boosts the market to the next level
- Younger generation becomes the major consumption force
- Growing consumption power drives affordable luxury market
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Key Players’ Performance
- Coach
- Pandora
- Issey Miyake
- Michael Kors
- ELLASSAY
- Coach
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Competitive Strategies
- Interactive customization shortens the distance with consumers
- Figure 9: BaubleBar’s video chat, 2020
- Making the shopping journey fun
- The rarer, the more precious
- Figure 10: Koio, 2021
- Advocate minimalist style in younger shoppers
- Figure 11: M.Gemi, 2021
- Endowing meaning when buying
- Figure 12: Darry Ring’s limited selling to male consumers, 2021
- Interactive customization shortens the distance with consumers
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Who’s Innovating?
- Dedicated to the recycling economy
- Figure 13: Portobello, Mulberry, 2019
- Shift to simple design
- Figure 14: Issey Miyake BAO BAO, 2019
- Improving shopping experience with algorithms and big data
- Figure 15: True&Co’s offers various underwear for females with different body styles, 2021
- Dedicated to the recycling economy
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Affordable Luxury Products Bought
- Affordable luxury is more easily accepted than luxury
- Figure 16: Affordable luxury products bought, 2021
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- Figure 17: Affordable luxury products bought, 2021
- Financial status heavily affects purchase preference
- Figure 18: Affordable luxury products bought, by monthly personal income, 2021
- Jewellery and clothing preferred by 25-39s
- Figure 19: Affordable luxury clothing and jewellery bought, by age, 2021
- Demand in lower tier cities is catching up with big cities
- Figure 20: Affordable luxury products bought, by city tier, 2021
- Affordable luxury is more easily accepted than luxury
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Purchasing Channel
- Official channels prevail for affordable luxury goods
- Figure 21: Purchasing channels for affordable luxury, 2021
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- Figure 22: Pandora’s statement on sustainability, 2021
- Grab high income consumers
- Figure 23: Purchase channel for affordable luxury, by monthly personal income, 2021
- Unleash the potential of shopping apps and second-hand exchange markets
- Figure 24: Purchase channel for affordable luxury, by city tier, 2021
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- Figure 25: Purchased affordable luxury products in selected channels, 2021
- Official channels prevail for affordable luxury goods
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Source of Information
- Online information is the key
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- Figure 26: Sources for getting information about affordable luxury, 2021
- Marketing to different ages
- Figure 27: Sources for getting information about affordable luxury, by age, 2021
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- Figure 28: Sources for getting information about affordable luxury, by age, 2021
- Public traffic converted most by live streaming
- Figure 29: Sources for getting information about affordable luxury, by purchasing channels, 2021
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- Figure 30: Advertisement for Tmall’s luxury product promotion, 2020
- Online information is the key
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Paying for Affordable Luxury
- Jewellery and watches never go out of style
- Figure 31: Preferred price for purchasing affordable luxury products, 2021
- Opportunity for jewellery with family with kids
- Figure 32: Preferred price for purchasing affordable luxury jewellery, by family structure, 2021
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- Figure 33: Chow Tai Fook’s Inheritance collection, 2021
- Target Gen Z with entry level products
- Figure 34: Selected preferred price for purchasing affordable luxury products, by age, 2021
- The potential of lower tier cities
- Figure 35: Selected preferred price for purchasing affordable luxury products, by city tier, 2021
- Jewellery and watches never go out of style
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Purchasing Factors for Affordable Luxury
- Deliver self-expression via buying affordable luxury
- Figure 36: Reasons for purchasing affordable luxury, 2021
- Focus on 25-29s with good financial status
- Figure 37: Selected reasons for purchasing affordable luxury, by age and monthly personal income, 2021
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- Figure 38: Selected reasons for purchasing affordable luxury, by age, 2021
- Lure high income individuals with customization services and co-branding
- Figure 39: Selected reasons for purchasing affordable luxury, by monthly personal income, 2021
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- Figure 40: Selected reasons for purchasing affordable luxury, by monthly personal income, 2021
- Deliver self-expression via buying affordable luxury
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Attitudes towards Affordable Luxury
- Affordable luxury as a rational and quality life
- Figure 41: Selected attitudes towards affordable luxury, 2021
- Low-key design is more preferred
- Figure 42: Selected attitudes towards affordable luxury, 2021
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- Figure 43: Selected attitudes towards affordable luxury, by age, 2021
- High earners are looking more for domestic brands
- Figure 44: Selected attitudes towards affordable luxury, by monthly personal income, 2021
- Potential challenge for affordable luxury
- Figure 45: Selected attitudes towards affordable luxury, 2021
- Affordable luxury as a rational and quality life
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Appendix – Methodology and Abbreviations
- Methodology
- Abbreviations
- Methodology
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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Data
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*databooks not available with UK B2B Industry reports.
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