Table of Contents
Executive Summary
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- The market
- Steady growth of consumption force
- Luxury brands integrating with local culture
- Powered by virtual experiences
- The consumer
- Success and social status mean more
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- Figure 1: Definitions of luxury, December 2020
- Spending for mental comfort
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- Figure 2: Motivation for purchasing luxury goods and services, December 2020
- Limited editions with limited access
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- Figure 3: Barriers to purchasing luxury products and services, December 2020
- Rising opportunity in lower tier cities
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- Figure 4: Source of information, December 2020
- High-end digital products are prevalent
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- Figure 5: Luxury products and services bought or received by Gen Z, December 2020
- Provide a sense of mystery through mystery boxes
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- Figure 6: Attitudes towards luxury, December 2020
- What we think
Issues and Insights
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- Redefine the meaning of luxury
- The facts
- The implications
- Unleash the potential of virtual entertainment
- The facts
- The implications
- Expose identity through shopping experience
- The facts
- The implications
The Market – What You Need to Know
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- Luxury market for Gen Z is promising
- Approaching Gen Z softly
Market Drivers
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- Increasing disposal income
- Gen Z boast substantial spending power
- Luxury rental is evolving
- Second-hand business is catching on
Key Players – What You Need to Know
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- The potential for collaborating with virtual entertainment
- Sustainable ideas for consumers
Competitive Strategies
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- Endorsing charity ventures
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- Figure 7: Zegna’s Heart of Oasi Zegna, January 2021
- Hook consumers with less expensive goods
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- Figure 8: Mikimoto scarf, January 2021
Who’s Innovating?
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- Gamification experience
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- Figure 9: Summoner’s Cup, Louis Vuitton with League of Legends, September 2020
- Figure 10: Virtual fashion show, July 2019
- Virtualized shopping experiences
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- Figure 11: Gucci’s AR shoes, March 2021
- Localised customization
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- Figure 12: Balenciaga’s customized bag, July 2020
- Figure 13: Dior Book Tote customized handbag, May 2020
The Consumer – What You Need to Know
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- Luxury delivers a sense of ceremony
- Luxury brands loving live streaming
- Take advantage of advanced consumption mindset
Definitions of Luxury
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- Luxury stands for success
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- Figure 14: Definitions of luxury, December 2020
- Social status means more to male Gen Zers
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- Figure 15: Attitude towards luxury for displaying social status/success, by gender and age, December 2020
- High earners buy for life while low earners want to show off
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- Figure 16: Selected definitions of luxury, by monthly household income, December 2020
Spending Motivation
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- Buy for a sense of ceremony
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- Figure 17: Motivation for purchasing luxury goods and services, December 2020
- Female Gen Zers buy for love while males buy for themselves
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- Figure 18: Motivation for purchasing luxury goods and services, by gender, December 2020
- High earners are more mature luxury consumers
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- Figure 19: Motivation for purchasing luxury goods and services, by monthly personal income, December 2020
Purchase Barriers
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- Inconvenience a major issue
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- Figure 20: Barriers to purchasing luxury products/services, December 2020
- Marketing to female Gen Zers
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- Figure 21: Selected barriers to purchasing luxury products and services, by genders, December 2020
- Luxury design appreciated by high earners
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- Figure 22: Selected barriers to purchasing luxury products and services, by monthly household income, December 2020
Source of Information
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- Official channels and shopping websites are key
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- Figure 23: Source of information, TURF analysis, December 2020
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- Figure 24: Source of information, December 2020
- Improve appearance in lower tier cities
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- Figure 25: Selected source of information, by city tier, December 2020
- Live streaming to entice high earners
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- Figure 26: Selected source of information, by monthly household income, December 2020
Products Bought
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- Relatively sluggish consumption
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- Figure 27: Luxury products/services bought or received by Gen Z, December 2020
- Office employees vs full-time students
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- Figure 28: High-end digital products with advanced configurations bought or received by Gen Z, by employment, December 2020
- Fans of high-end digital products
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- Figure 29: High-end digital products with advanced configurations bought or received by Gen Z, by gender and age, December 2020
Attitudes towards Luxury
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- Access to spiritual comfort
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- Figure 30: Attitudes towards luxury, December 2020
- Potential for mystery boxes
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- Figure 31: Attitudes towards purchasing mystery boxes of luxury branded products, by gender and monthly personal income, December 2020
- Opportunity for Nijigen and mobile games
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- Figure 32: Attitudes towards luxury brands collaboration with Nijigen and mobile games, by only child and monthly personal income, December 2020
- Live streaming is booming and worth trying in lower tier cities
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- Figure 33: Selected attitudes towards luxury, by city tier, December 2020
- Advanced consumption scenarios
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- Figure 34: Attitudes towards overspending for most trendy luxury brands or services, by only child and monthly personal income, December 2020
Meet the Mintropolitans
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- Satisfied so far with gorgeous ads
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- Figure 35: Barriers to purchasing luxury products and services, December 2020
- More likely to have advanced consumption
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- Figure 36: Attitudes towards overspending for most trendy luxury brands or services, December 2020
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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