Table of Contents
Overview
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- What you need to know
- Covered in this report
- Definition
Executive Summary
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- The market
- The consumer
- Buying luxury more for themselves rather than for others
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- Figure 1: Luxury buyers, June 2016, February 2017 and April 2019
- Luxury beauty outperforms, fashion clothing and jewellery remain popular
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- Figure 2: Luxury products or services bought, February 2019
- Department stores are losing favour
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- Figure 3: Purchase channel of luxury products, April 2019
- Willing to pay for big luxury brand names
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- Figure 4: Reasons to buy luxury jewellery or timepieces, April 2019
- Cartier takes the lead in hard luxury
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- Figure 5: Popular hard luxury brands of jewellery or timepieces buyers, April 2019
- Second-hand luxury market is just starting out
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- Figure 6: Attitude towards second-hand luxury, April 2019
- What we think
Issues and Insights
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- Luxury is no longer about social status and material possessions
- The facts
- The implications
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- Figure 7: Streetwear elements and design in luxury brands
- Modern luxury is more approachable and inviting
- The facts
- The implications
- Luxury jewellery and watch brands under threat from high fashion brands
- The facts
- The implications
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- Figure 8: Price of channel and tiffany & Co.’s earrings, June 2019
Market Overview
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- Positive outlook for luxury market in China
- Sales of major luxury conglomerates and brands
- LVMH
- Kering
- Richemont
- Swatch Group
- Hermès
- Prada Group
- Tiffany & Co.
Market Factors
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- Rich population is growing fast
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- Figure 9: High-net-worth individuals in china, 2008-2017
- Tax and regulations to boost domestic consumption
- Travel and luxury shopping remain popular
- Online channel opens up new possibilities
Luxury Marketing
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- Interactive WeChat to better connect with consumers
- Tell the history and story of luxury brands
- Collaboration and pop-ups to grab attention
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- Figure 10: Dior X KAWS SKP pop-up store at Beijing SKP
- Culture sells but better understanding of the subtlety and nuances of Chinese culture needed
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- Figure 11: Ad campaigns of Dolce & Gabbana and Burberry
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- Figure 12: Miu Miu Club Shanghai, November 2018
The Consumer – What You Need to Know
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- Men catch up in luxury purchase
- Post-80s are more into luxury purchase, while post-90s have great potential
- Brand physical stores still dominate luxury market
- Famous luxury brands take all
- European luxury still leads the brands list
- Demanding more customised luxury
Luxury Buyers
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- Luxury consumption remains strong in China
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- Figure 13: Luxury buyers, June 2016, February 2017 and April 2019
- Luxury is no longer reserved for the rich
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- Figure 14: Luxury buyers, by monthly personal income, April 2019
- Watch out for self-indulgent young luxury shoppers
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- Figure 15: Luxury buyers, by generation, April 2019
- Young men have great potential in luxury
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- Figure 16: Luxury buyers, by gender, June 2016, February 2017 and April 2019
- Consumers in South and Mid-west are attracted to luxury
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- Figure 17: Luxury buyers, by region, February 2017 and April 2019
- Civil servants are becoming open-minded on luxury
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- Figure 18: Luxury buyers, by company type, February 2017 and April 2019
Items Purchased
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- Beauty leads in luxury goods purchase
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- Figure 19: Luxury products or services bought, February 2019
- Home products might be the next star in luxury
- Hard luxury is giving way to the small indulgences
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- Figure 20: Luxury products or services bought, June 2016 and April 2019
- High income consumers want luxurious aura both at home and on the road
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- Figure 21: Luxury products or services bought, by monthly personal income, April 2019
- Women buy more in all luxury categories
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- Figure 22: Luxury products or services bought, by gender, April 2019
- Post-90s fancy beauty products and jewellery
Purchase Channel
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- Offline brand store is a must
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- Figure 23: Purchase channel of luxury products, April 2019
- Jewellers and timepieces should consider investing in omni-channel
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- Figure 24: Purchase channel of luxury products, April 2019
- Plenty of room to grow for official retail channels
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- Figure 25: Purchase channel of luxury products, April 2019
- WeChat applets on the rise
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- Figure 26: Purchase channel of luxury products, WeChat applet, by monthly personal income, April 2019
- High earners also purchase more on the online channel
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- Figure 27: Purchase channel of luxury products, online channel, by monthly personal income, April 2019
Purchase Influencers
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- Jewellery and timepieces
- Brand name and craftsmanship are most important
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- Figure 28: Reasons to buy luxury jewellery or timepieces, April 2019
- Craftsmanship is more effective in driving jewellery purchase than in timepieces
- Men are more interested in brand history and techniques
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- Figure 29: Reasons to buy luxury jewellery or timepieces, by gender, April 2019
- Investment value drives hard luxury purchase
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- Figure 30: Reasons to buy luxury jewellery or timepieces, by generation, April 2019
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- Figure 31: Reasons to buy luxury jewellery or timepieces, by monthly personal income, April 2019
- Impact of other demographics on reasons to purchase hard luxury
- Fashion products
- Brand history does not really sell in luxury fashion
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- Figure 32: Reasons to buy luxury fashion products, April 2019
- Figure 33: Rank of purchase influencers of fashion products and jewellery/timepieces, April 2019
- Unique design remains the key to appeal to younger consumers
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- Figure 34: Reasons to buy luxury fashion products, by generation, April 2019
- Tier-one-city consumers delve into the raw materials used
Jewellery and Watch Brands Last Bought
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- Cartier dominates hard luxury market
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- Figure 35: Hard luxury brands last bought, mentioned by more than 1% of jewellery or timepieces buyers, April 2019
- European luxury brands are sought-after in China
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- Figure 36: Origin of the hard luxury brands last bought, by brand origin, April 2019
- Chinese jewellers start to break into luxury jewellery list
- Men’s interest in technical specifications reflects brand preference in hard luxury
- Strengths and weaknesses of hard luxury brands
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- Figure 37: Purchase influencers of luxury jewellery or timepieces, by brand last bought, selected brands, April 2019
- Cartier
- Tiffany & Co.
- CHANEL
- ROLEX
- GUCCI
- BVLGARI
- Longines
- Chow Tai Fook
Luxury Purchase Trends
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- Buying luxury is new normal
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- Figure 38: Necessity of luxury in life, February 2017 and April 2019
- Luxury shoppers are open to luxury products and luxury experiences
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- Figure 39: Interest in luxury branded products vs luxurious experiences, February 2017 and April 2019
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- Figure 40: Interest in luxury branded products vs luxurious experiences, by whether have bought luxury products or services in the past 18 months, February 2017 and April 2019
- Niche luxury brands are losing their mojo
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- Figure 41: Preference for brand type, February 2017 and April 2019
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- Figure 42: Reasons to buy hard luxury and luxury fashion products, by brand recognition preference, April 2019
- Figure 43: Brunello Cucinelli and Liu Tao
- Still a long way to go for second-hand/vintage luxury in China
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- Figure 44: Acceptance of second-hand luxury, April 2019
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- Figure 45: Acceptance of second-hand luxury, by monthly personal income, April 2019
- Customisation in luxury will be the next trend
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- Figure 46: Attitude towards customisation, February 2017 and April 2019
- Figure 47: Attitude towards customisation, by city tier, February 2017 and April 2019
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- Figure 48: Attitude towards customisation options, April 2019
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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