Table of Contents
Introduction
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- Definition
- Report scope
- Mintel market sizes
- Defining luxury goods
- Methodology
- Abbreviations
Executive Summary
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- The market
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- Figure 1: China – Luxury retail total market value, 2009-19
- Companies and brands
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- Figure 2: China – Leather goods: Company retail market share, by value (%), 2012 and 2013
- The consumer
- Key consumer groups
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- Figure 3: Target groups, June 2014
- Definition of luxury
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- Figure 4: People's definition of what luxury means to them, June 2014 and November 2013
- Luxury products and brands bought
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- Figure 5: What luxury products consumers have bought in the last 18 months, June 2014
- Channel of luxury purchases
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- Figure 6: Which channels consumers have bought luxury branded products in the last 18 months, June 2014
- Brand awareness
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- Figure 7: Consumer awareness of selected leading luxury brands, June 2014
- Attitudes towards buying luxury products
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- Figure 8: Consumer attitudes towards luxury brands, June 2014
- Perceptions of luxury
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- Figure 9: Consumer attitudes towards what luxury means to them, June 2014
- Key issues
- Luxury in China: The cultural context
- The internet of luxury
- The Chinese luxury market not just in China
- Anti-luxury and the shift to “masstige”
- What we think
Issues and Insights
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- Luxury in China: The cultural context
- The facts
- The cultural differences
- The luxury development stages
- The luxury consumer development stages
- The rise of Chinese luxury brands
- Drivers of luxury redefinition
- The internet of luxury
- The facts
- The brand experience versus the product price
- The online threat
- Is online adding to the market, or cannibalising it?
- Alibaba: the 500lb gorilla in the corner of the luxury room
- The Chinese luxury market not just in China
- The facts
- The luxury of overseas travel
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- Figure 10: Top 20 outbound destinations by travel agencies in 2013
- Marketing to Chinese consumers requires a global strategy
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- Figure 11: Top 10 countries in the luxury market, by sales, 2009-13
- Anti-luxury and the shift to “masstige”
- The facts
- Is luxury the “new opium”?
- The changing priorities of China’s urban rich
- The rise of the “mass affluent”
Trend Application
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- Prove It
- Slow It All Down
- Mintel Futures: East Meets West
Market Size and Forecast
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- Key points
- Luxury market enduring significant slowdown
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- Figure 12: China – Luxury retail total market value, 2009-19
- Future growth likely stronger thanks to more millionaires
- More new luxury department stores enter the market
- Pricing remains high
Market Segmentation
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- Key points
- Growth slowdown affecting sectors in different ways
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- Figure 13: China – Luxury retail market value, by broad sector, 2010-14
- Watches show the greatest decline
- High-end alcoholic drink sales weaken
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- Figure 14: China – Total spirits and wine and sparkling wine market values and annual growth rates, 2010-14
- Cosmetics, fragrances and the luxury of pampering
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- Figure 15: China – Colour cosmetics and fragrances: Retail market segmentation, by value, 2009-13
- Fashion and leather goods sustain good growth
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- Figure 16: China – Leather goods: Retail market segmentation, by value, 2010-13
- Figure 17: China – Clothing: Retail market segmentation, by value, 2010-13
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- Figure 18: China – Footwear: Retail market segmentation, by value, 2009-13
Market Share
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- Key points
- LVMH and Kering lead the leather goods sector
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- Figure 19: China – Leather goods: Company retail market share, by value (%), 2012 and 2013
- Foreign brands dominate cosmetics…
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- Figure 20: China – Colour cosmetics: Company retail market share, by value (%), 2012 and 2013
- …and fragrances
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- Figure 21: China – Fragrances: Company retail market share, by value (%), 2012 and 2013
- Domestic brands cannot be ignored
Who’s Innovating?
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- Key points
- Adapting to the shifts in the luxury market
- Companies opening more stores, deepening penetration
- Brands venture into social marketing
- Turning museums into shop fronts
- The draw of domestic luxury brands
- Burberry “pioneers” Tmall luxury
- Armani goes with movie product placement
Companies and Brands
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- LVMH Moët Hennessy Louis Vuitton
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- Figure 22: LVMH: Group financial performance, 2009-13
- Figure 23: LVMH: Distribution of revenues, by region, 2009-13
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- Figure 24: LVMH: Significance of other Asia division to segment revenues, 2010-13
- Kering Luxury
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- Figure 25: Kering Luxury: Financial performance, 2009-13
- Figure 26: Kering Luxury: Breakdown of revenue, by product category and by region, 2009-13
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- Figure 27: Kering Luxury: Asia-Pacific excluding Japan division share of key brand revenues, 2009-13
- Coach Group
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- Figure 28: Coach: Group financial performance, 2009/10-2013/14
- Figure 29: Coach: Group sectoral performance, 2011/12-2013/14
- Hermès Group
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- Figure 30: Hermès: Financial performance, 2009-13
- Figure 31: Hermès: Sales, by product category, 2011-13
- L’Oréal Luxe
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- Figure 32: L’Oréal Group: Net revenues, by division, 2009-13
- Figure 33: L’Oréal Luxe: Sales, by region and product area, 2010-13
The Consumer – Key Consumer Groups
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- Key points
- The key consumer groups
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- Figure 34: Target groups, June 2014
- Brand Braggers
- Who they are
- What they like
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- Figure 35: Brand Braggers’ definition of what luxury means to them, compared to all consumers, June 2014
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- Figure 36: Brand Braggers’ attitudes towards what luxury means to them, compared to all consumers, June 2014
- Marketing approach
- Karma Queens
- Who they are
- What they like
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- Figure 37: Karma Queens’ definition of what luxury means to them, compared to all consumers, June 2014
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- Figure 38: Karma Queens’ attitudes towards what luxury means to them, compared to all consumers, June 2014
- Marketing approach
- Luxury Sceptics
- Who they are
- What they like
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- Figure 39: Luxury Sceptics’ definition of what luxury means to them, compared to all consumers, June 2014
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- Figure 40: Luxury Sceptics’ attitudes towards what luxury means to them, compared to all consumers, June 2014
- Marketing approach
The Consumer – Definition of Luxury
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- Key points
- Changing definitions shaping the market
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- Figure 41: People's definition of what luxury means to them, June 2014 and November 2013
- Luxury definitions by lifestage
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- Figure 42: People's definition of what luxury means to them, by gender and age, June 2014
- Luxury definitions change with income group
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- Figure 43: People's definition of what luxury means to them, by monthly household income group, June 2014
- Luxury definitions change by location
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- Figure 44: People's definition of what luxury means to them, by city, June 2014
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- Figure 45: People's definition of what luxury means to them, by city, June 2014 (continued)
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- Figure 46: People's definition of what luxury means to them, by city tier, June 2014
- Luxury definitions among the key consumer groups
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- Figure 47: People's definition of what luxury means to them, by key consumer group, June 2014
- Luxury definitions differ by sector
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- Figure 48: People's definition of what luxury means to them, by what luxury products consumers have bought in the last 18 months, June 2014
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- Figure 49: People's definition of what luxury means to them, by what luxury products consumers have bought in the last 18 months, June 2014 (continued)
The Consumer – Luxury Products and Brands Bought
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- Key points
- Four out of five consumers have recently bought luxury products
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- Figure 50: Consumers who have bought luxury products in the last 18 months, June 2014
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- Figure 51: Consumers who have bought luxury products in the last 18 months, by demographics and location, June 2014
- Luxury products bought
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- Figure 52: What luxury products consumers have bought in the last 18 months, June 2014
- Luxury products bought by demographic group
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- Figure 53: What luxury products consumers have bought in the last 18 months, by gender and age, June 2014
- Luxury products bought by income group
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- Figure 54: What luxury products consumers have bought in the last 18 months, by monthly household income group, June 2014
- Luxury products bought by city
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- Figure 55: What luxury products consumers have bought in the last 18 months, by city, June 2014
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- Figure 56: What luxury products consumers have bought in the last 18 months, by city, June 2014 (continued)
- Luxury products bought by channel
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- Figure 57: What luxury products consumers have bought in the last 18 months, by which channels consumers have bought luxury branded products in the last 18 months, June 2014
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- Figure 58: What luxury products consumers have bought in the last 18 months, by which channels consumers have bought luxury branded products in the last 18 months, June 2014 (continued)
The Consumer – Channel of Luxury Purchases
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- Key points
- Department stores, brand websites and duty-free shops dominate
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- Figure 59: Which channels consumers have bought luxury branded products in the last 18 months, June 2014
- Luxury purchase channels by demographic groups
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- Figure 60: Which channels consumers have bought luxury branded products in the last 18 months, by gender and age, June 2014
- Luxury purchase channels by income groups
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- Figure 61: Which channels consumers have bought luxury branded products in the last 18 months, by monthly household income group, June 2014
- Luxury purchase channels by city
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- Figure 62: Which channels consumers have bought luxury branded products in the last 18 months, by city, June 2014
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- Figure 63: Which channels consumers have bought luxury branded products in the last 18 months, by city, June 2014 (continued)
- Repertoire analysis
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- Figure 64: Repertoire of which channels consumers have bought luxury branded products in the last 18 months, June 2014
- Repertoire analysis by demographic group
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- Figure 65: Repertoire of which channels consumers have bought luxury branded products in the last 18 months, by gender and age, June 2014
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- Figure 66: Repertoire of which channels consumers have bought luxury branded products in the last 18 months, by monthly household income group, June 2014
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- Figure 67: Repertoire of which channels consumers have bought luxury branded products in the last 18 months, by city tier, June 2014
The Consumer – Brand Awareness
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- Key points
- Chanel tops the chart of brands consumers are aware of
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- Figure 68: Consumer awareness of selected leading luxury brands, June 2014
- Consumer brand awareness by demographic group
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- Figure 69: Consumer awareness of selected leading luxury brands, by gender and age, June 2014
- Consumers brand awareness by income group
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- Figure 70: Consumer awareness of selected leading luxury brands, by monthly household income group, June 2014
- Consumers brand awareness by location
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- Figure 71: Consumer awareness of selected leading luxury brands, by city, June 2014
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- Figure 72: Consumer awareness of selected leading luxury brands, by city, June 2014 (continued)
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- Figure 73: Consumer awareness of selected leading luxury brands, by city tier, June 2014
The Consumer – Attitudes Towards Buying Luxury Products
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- Key points
- Image enhancement remains the key lure of luxury
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- Figure 74: Consumer attitudes towards luxury brands, June 2014
- Attitudes towards luxury by demographic group
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- Figure 75: Consumer attitudes towards luxury brands, by gender and age, June 2014
- Attitudes towards luxury by income group
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- Figure 76: Consumer attitudes towards luxury brands, by monthly household income group, June 2014
- Attitudes towards luxury by location
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- Figure 77: Consumer attitudes towards luxury brands, by city, June 2014
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- Figure 78: Consumer attitudes towards luxury brands, by city, June 2014 (continued)
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- Figure 79: Consumer attitudes towards luxury brands, by city tier, June 2014
The Consumer – Perceptions of Luxury
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- Key points
- Craftsmanship and design lead perceptions of what luxury is
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- Figure 80: Consumer attitudes towards what luxury means to them, June 2014
- Perceptions of luxury are shifting
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- Figure 81: Consumer attitudes towards what luxury means to them, June 2014 and November 2013
- Perceptions of luxury by demographic group
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- Figure 82: Consumer attitudes towards what luxury means to them, by gender and age, June 2014
- Perceptions of luxury by income group
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- Figure 83: Consumer attitudes towards what luxury means to them, by monthly household income group, June 2014
- Perceptions of luxury by location
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- Figure 84: Consumer attitudes towards what luxury means to them, by city, June 2014
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- Figure 85: Consumer attitudes towards what luxury means to them, by city, June 2014 (continued)
Appendix – Market Size and Forecast
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- Figure 86: China – Total historical and forecast luxury market value, 2009-19
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Appendix – The Consumer – Definition of Luxury
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- Figure 87: People's definition of what luxury means to them, June 2014
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- Figure 88: Most popular people's definition of what luxury means to them, by demographics, June 2014
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- Figure 89: Next most popular people's definition of what luxury means to them, by demographics, June 2014
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- Figure 90: Other people's definition of what luxury means to them, by demographics, June 2014
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Appendix – The Consumer – Luxury Products and Brands Bought
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- Figure 91: Consumers who have bought luxury products in the last 18 months, June 2014
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- Figure 92: Consumers who have bought luxury products in the last 18 months, by demographics, June 2014
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- Figure 93: What luxury products consumers have bought in the last 18 months, June 2014
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- Figure 94: Most popular what luxury products consumers have bought in the last 18 months, by demographics, June 2014
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- Figure 95: Next most popular what luxury products consumers have bought in the last 18 months, by demographics, June 2014
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- Figure 96: Other what luxury products consumers have bought in the last 18 months, by demographics, June 2014
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Appendix – The Consumer – Channel of Luxury Purchases
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- Figure 97: Which channels consumers have bought luxury branded products in the last 18 months, June 2014
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- Figure 98: Which channels consumers have bought luxury branded products in the last 18 months – Bought online, by demographics, June 2014
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- Figure 99: Which channels consumers have bought luxury branded products in the last 18 months – Bought in China (including Hong Kong, Taiwan, Macao), by demographics, June 2014
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- Figure 100: Which channels consumers have bought luxury branded products in the last 18 months – Bought in another country, by demographics, June 2014
- Repertoire analysis
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- Figure 101: Repertoire of which channels consumers have bought luxury branded products in the last 18 months, June 2014
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- Figure 102: Repertoire of which channels consumers have bought luxury branded products in the last 18 months, by demographics, June 2014
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Appendix – The Consumer – Brand Awareness
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- Figure 103: Consumer awareness of selected leading luxury brands, June 2014
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- Figure 104: Most popular consumer awareness of selected leading luxury brands, by demographics, June 2014
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- Figure 105: Next most popular consumer awareness of selected leading luxury brands, by demographics, June 2014
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- Figure 106: Other consumer awareness of selected leading luxury brands, by demographics, June 2014
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Appendix – The Consumer – Attitudes Towards Buying Luxury Products
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- Figure 107: Consumer attitudes towards luxury brands, June 2014
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- Figure 108: Most popular consumer attitudes towards luxury brands, by demographics, June 2014
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- Figure 109: Next most popular consumer attitudes towards luxury brands, by demographics, June 2014
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- Figure 110: Other consumer attitudes towards luxury brands, by demographics, June 2014
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Appendix – The Consumer – Perceptions of Luxury
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- Figure 111: Consumer attitudes towards what luxury means to them, June 2014
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- Figure 112: Agreement with the statement ‘Luxury is more about expressing individuality rather than fitting in’, by demographics, June 2014
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- Figure 113: Agreement with the statement ‘Luxury is about having the freedom of choice’, by demographics, June 2014
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- Figure 114: Agreement with the statement ‘Having luxury products shows that I have achieved a certain social status’, by demographics, June 2014
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- Figure 115: Agreement with the statement ‘Having space to myself is more of a luxury than having expensive things’, by demographics, June 2014
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- Figure 116: Agreement with the statement ‘I like other people to see that I can afford to buy luxury products’, by demographics, June 2014
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- Figure 117: Agreement with the statement ‘Peace and quiet are luxuries to me’, by demographics, June 2014
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- Figure 118: Agreement with the statement ‘I identify my lifestyle with luxury brands’, by demographics, June 2014
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- Figure 119: Agreement with the statement ‘Knowing that I can afford luxury goods is more important than using them to show my status’, by demographics, June 2014
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- Figure 120: Agreement with the statement ‘I would like to have the best things money can buy’, by demographics, June 2014
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- Figure 121: Agreement with the statement ‘Only brands providing craftsmanship in production and design can be identified as luxury’, by demographics, June 2014
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Appendix – Further Analysis
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- Figure 122: Target groups, by demographics, June 2014
- Figure 123: People's definition of what luxury means to them, by target groups, June 2014
- Figure 124: Consumer attitudes towards what luxury means to them, by target groups, June 2014
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