Table of Contents
Overview
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- What you need to know
- Covered in this report
Executive Summary
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- The consumer
- Desire to buy luxury is obvious (especially luxurious experiences), while hard luxury may confront slow growth
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- Figure 1: Attitude towards luxury, luxury branded items and luxurious experiences, February 2017
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- Figure 2: Likelihood to purchase luxury products across categories, February 2017
- Brand values are not fully acknowledged
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- Figure 3: Attitude towards affordable or discount luxury branded items, February 2017
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- Figure 4: Word cloud of luxury brands that consumers have bought in the last 18 months, February 2017
- Majority buy luxury for small happiness and indulgence
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- Figure 5: Luxury purchase occasions, February 2017
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- Figure 6: Top 10 emotions associated with luxury purchase, February 2017
- Purchase preferences: well-known brands and products that are classic, authentic and beautifully designed
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- Figure 7: Preferences towards luxury brands and products, February 2017
- Four types of consumers
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- Figure 8: Consumer segmentation based on their attitudes towards life, February 2017
- What we think
Issues and Insights
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- Evolvement of Chinese luxury consumers
- The facts
- The implications
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- Figure 9: Classification of luxury consumers and their needs
- Selling luxury to two genders
- The facts
- The implications
- Targeting young luxury consumers
- The facts
- The implications
- Being approachable is absolutely necessary
- The facts
- The implications
The Consumer – What You Need to Know
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- Interest in different luxury categories is changing
- Definition for ‘luxury’ has become loose
- Emotion-driven marketing communications rule
Attitudes towards Luxury Category
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- Only half of Chinese consumers are determined to buy luxury
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- Figure 10: Attitude towards luxury category, February 2017
- Increased luxury purchasing is part of the Chinese consumption upgrade trend, rather than increasing luxury knowledge
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- Figure 11: Proportion of luxury buyers and non-buyers, by consumers holding different opinions towards luxury products, February 2017
- Top-tier luxury names are more desired with less showy items in demand
Luxury Consumers
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- Role of income in increasing luxury purchase
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- Figure 12: Comparison of the number of buyers of luxury branded items in 2016 and 2017, February 2017 and June 2016
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- Figure 13: Buyers of luxury branded items, by monthly personal income, February 2017
- Chinese luxury market is driven by consumers aged 25-39
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- Figure 14: Buyers of luxury branded items, by age, February 2017 and June 2016
- The shift of luxury brand buyers from young towards mature females
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- Figure 15: Buyers of luxury branded items, by age and gender, February 2017 and June 2016
- Women generally drive luxury markets more than men
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- Figure 16: Buyers of luxury branded items, by gender, February 2017 and June 2016
- Females aged 20-24 have a different view on luxury
- Consumers from middle and western China buy fewer luxury items
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- Figure 17: Buyers of luxury branded items, by region, February 2017
Likelihood to Purchase Luxury
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- Hard luxury is giving way to casual luxury
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- Figure 18: Likelihood to purchase luxury products across categories, February 2017
- Electronics, the new luxury
- Growing desire for luxurious lifestyle products
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- Figure 19: Likelihood to purchase selective luxurious experiences, February 2017
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- Figure 20: Interest in luxury branded products vs luxurious experiences, February 2017
- High earners have special desire for home improvement and collection
- Impact of demographic features on luxury category preferences
Luxury Brands Purchase
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- Luxury is not exclusive to top-tier brands
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- Figure 21: Attitude towards luxury brand tier, February 2017
- Consumers are not yet experts in luxury classification
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- Figure 22: Word cloud of luxury brands that consumers have bought in the last 18 months, February 2017
- Chanel stays on top
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- Figure 23: Top 10 luxury brands that consumers have bought most recently in the last 18 months, February 2017
- Local luxury brands are rising driven by consumer desire for value-for-money products
- Brand preferences do exist across genders
Luxury Purchase Occasions
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- The main motivation to purchase luxury: pleasure and self-indulgences
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- Figure 24: Luxury purchase occasions, February 2017
- Small items, as a causal token to my love
- Men and women buy luxury for different reasons
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- Figure 25: Luxury purchase occasions, by gender, February 2017
- Higher earners have more special occasions for luxury
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- Figure 26: Luxury purchase occasions, by monthly household income, February 2017
Emotions Associated with Luxury
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- Less about superiority, more about self-improvement and satisfaction
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- Figure 27: Top 10 emotions associated with luxury purchase, February 2017
- High price does not have the closest relationship with luxury
- Use emotions to sell
- Brand unique identity and exclusivity are somehow neglected
- Marketing strategy needs to be adaptive to age differences
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- Figure 28: Different emotional association across ages, February 2017
- Women want a pat on the back, while men seek status enhancer
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- Figure 29: Different emotional associations between men and women, February 2017
Luxury Purchase Trends
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- Most consumers prefer the widely-known luxury brands and products
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- Figure 30: Preferences towards luxury brands and products, February 2017
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- Figure 31: Preferences towards luxury brands and products, by luxury buyers and non-buyer, February 2017
- Well-known and niche brand lovers buy luxury for different purposes
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- Figure 32: Differences of luxury purchase occasions between niche brand lovers and well-known brand lovers, February 2017
- How to attract well-known and niche brand lovers?
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- Figure 33: Differences of luxury associations between niche brand lovers and well-known brand lovers, February 2017
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- Figure 34: Differences of luxury purchase beliefs between niche brand lovers and well-known brand lovers, February 2017
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- Figure 35: Differences of luxury purchase preferences between niche brand lovers and well-known brand lovers, February 2017
- Increasing appreciation of product design and customisation
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- Figure 36: Preferences towards luxury features and customisation, February 2017
- Seek smart ways to purchase luxury and a small number of consumers do consider replicas
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- Figure 37: Luxury purchase preferences, February 2017
- Figure 38: Differences of luxury purchase occasions between two types of consumers, February 2017
- Require more information and help during purchase
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- Figure 39: Luxury purchase decision-maker, February 2017
- Online purchase is becoming a mainstream
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- Figure 40: Preferences towards luxury purchase channels, February 2017
Consumer Segmentation
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- Four types of consumers
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- Figure 41: Consumer segmentation based on their attitudes towards life, February 2017
- Explorers (探索者): positive-minded consumers who tend to say yes to every idea
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- Figure 42: Agreement (including strongly agree and somewhat agree) on selected statements about financial management, by consumer segment, December 2016
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- Figure 43: Agreement (including strongly agree and somewhat agree) on selected statements about life priority, by consumer segment, December 2016
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- Figure 44: Likelihood to purchase luxury, by consumer segment, December 2016
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- Figure 45: Emotions associated with luxury purchase, by consumer segment, December 2016
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- Figure 46: Agreement (including strongly agree and somewhat agree) on selected statements about lifestyle, by consumer segment, December 2016
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- Figure 47: Agreement (including strongly agree and somewhat agree) on selected statements about individuality and self-identity, by consumer segment, December 2016
- Epicureans (享乐主义者): big spender devoted to sensual pleasures
- Budget Controllers (预算控制者): make smart purchasing decisions, rather than being stingy
- Sceptics (怀疑者): not entirely sure about their preferences and desires
Appendix – Methodology and Abbreviations
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- Methodology
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