Attitudes towards Luxury – China – July 2019
£ 3,695 (Excl.Tax)
Report Summary
“With the Chinese luxury market maturing, Chinese consumers are now seeking help from luxury brands to make a personal statement that shows their unique identity and better reflects their personality. Going forward, luxury fashion houses will need to have strategies in place to capture the rising younger luxury consumers with respect to strong brand identity, better product assortments, and more customisation options. Furthermore, investing in omni-channel remains important for luxury brands, particularly for hard luxury brands that lag behind.”
– Summer Xia, Research Analyst
This report looks at the following areas:
- Luxury is no longer about social status and material possessions
- Modern luxury is more approachable and inviting
- Luxury jewellery and watch brands under threat from high fashion brands
Table of Contents
-
Overview
- What you need to know
- Covered in this report
- Definition
- What you need to know
-
Executive Summary
-
- The market
- The consumer
- Buying luxury more for themselves rather than for others
- Figure 1: Luxury buyers, June 2016, February 2017 and April 2019
- Luxury beauty outperforms, fashion clothing and jewellery remain popular
- Figure 2: Luxury products or services bought, February 2019
- Department stores are losing favour
- Figure 3: Purchase channel of luxury products, April 2019
- Willing to pay for big luxury brand names
- Figure 4: Reasons to buy luxury jewellery or timepieces, April 2019
- Cartier takes the lead in hard luxury
- Figure 5: Popular hard luxury brands of jewellery or timepieces buyers, April 2019
- Second-hand luxury market is just starting out
- Figure 6: Attitude towards second-hand luxury, April 2019
- What we think
-
-
Issues and Insights
- Luxury is no longer about social status and material possessions
- The facts
- The implications
- 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
- Figure 8: Price of channel and tiffany & Co.’s earrings, June 2019
- Luxury is no longer about social status and material possessions
-
Market Overview
- Positive outlook for luxury market in China
- Sales of major luxury conglomerates and brands
- LVMH
- Kering
- Richemont
- Swatch Group
- Hermès
- Prada Group
- Tiffany & Co.
- Positive outlook for luxury market in China
-
Market Factors
- Rich population is growing fast
- 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
- Rich population is growing fast
-
Luxury Marketing
- Interactive WeChat to better connect with consumers
- Tell the history and story of luxury brands
- Collaboration and pop-ups to grab attention
- 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
- Figure 11: Ad campaigns of Dolce & Gabbana and Burberry
-
- Figure 12: Miu Miu Club Shanghai, November 2018
- Interactive WeChat to better connect with consumers
-
The Consumer – What You Need to Know
- 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
- Men catch up in luxury purchase
-
Luxury Buyers
- Luxury consumption remains strong in China
- Figure 13: Luxury buyers, June 2016, February 2017 and April 2019
- Luxury is no longer reserved for the rich
- Figure 14: Luxury buyers, by monthly personal income, April 2019
- Watch out for self-indulgent young luxury shoppers
- Figure 15: Luxury buyers, by generation, April 2019
- Young men have great potential in luxury
- Figure 16: Luxury buyers, by gender, June 2016, February 2017 and April 2019
- Consumers in South and Mid-west are attracted to luxury
- Figure 17: Luxury buyers, by region, February 2017 and April 2019
- Civil servants are becoming open-minded on luxury
- Figure 18: Luxury buyers, by company type, February 2017 and April 2019
- Luxury consumption remains strong in China
-
Items Purchased
- Beauty leads in luxury goods purchase
- 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
- 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
- Figure 21: Luxury products or services bought, by monthly personal income, April 2019
- Women buy more in all luxury categories
- Figure 22: Luxury products or services bought, by gender, April 2019
- Post-90s fancy beauty products and jewellery
- Beauty leads in luxury goods purchase
-
Purchase Channel
- Offline brand store is a must
- Figure 23: Purchase channel of luxury products, April 2019
- Jewellers and timepieces should consider investing in omni-channel
-
- Figure 24: Purchase channel of luxury products, April 2019
- Plenty of room to grow for official retail channels
- Figure 25: Purchase channel of luxury products, April 2019
- WeChat applets on the rise
- Figure 26: Purchase channel of luxury products, WeChat applet, by monthly personal income, April 2019
- High earners also purchase more on the online channel
- Figure 27: Purchase channel of luxury products, online channel, by monthly personal income, April 2019
- Offline brand store is a must
-
Purchase Influencers
- Jewellery and timepieces
- Brand name and craftsmanship are most important
- 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
- Figure 29: Reasons to buy luxury jewellery or timepieces, by gender, April 2019
- Investment value drives hard luxury purchase
- Figure 30: Reasons to buy luxury jewellery or timepieces, by generation, April 2019
-
- 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
- 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
- Figure 34: Reasons to buy luxury fashion products, by generation, April 2019
- Tier-one-city consumers delve into the raw materials used
- Jewellery and timepieces
-
Jewellery and Watch Brands Last Bought
- Cartier dominates hard luxury market
- 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
- 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
- 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
- Cartier dominates hard luxury market
-
Luxury Purchase Trends
- Buying luxury is new normal
- Figure 38: Necessity of luxury in life, February 2017 and April 2019
- Luxury shoppers are open to luxury products and luxury experiences
- Figure 39: Interest in luxury branded products vs luxurious experiences, February 2017 and April 2019
-
- 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
- Figure 41: Preference for brand type, February 2017 and April 2019
-
- 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
- Figure 44: Acceptance of second-hand luxury, April 2019
-
- Figure 45: Acceptance of second-hand luxury, by monthly personal income, April 2019
- Customisation in luxury will be the next trend
- Figure 46: Attitude towards customisation, February 2017 and April 2019
- Figure 47: Attitude towards customisation, by city tier, February 2017 and April 2019
-
- Figure 48: Attitude towards customisation options, April 2019
- Buying luxury is new normal
-
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.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
*databooks not available with UK B2B Industry reports.
Below is a sample report, understand what you are buying.
Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.
Trusted by companies. Big and small.
