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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Luxury of Gen Z - China market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Gen Zers might not be the main consumers of luxury yet, but their high awareness and desire to spend in the future has made them one of the most vital consumer groups for luxury brands to thrive in the future. Nonetheless, their habits and thinking are very different from older generations. They are much less likely to stick to a brand, even if they’ve found a favourite one – not to mention the fact that there is still a significant amount of Gen Z who claim they don’t have a favourite luxury brand yet. Consequently, it is a big challenge for luxury brands to build rewarding long-term relationships with Gen Z.

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Expert analysis from a specialist in the field

Written by Summer Xia, a leading analyst in the Lifestyles sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

With the help of social media, especially WeChat and Weibo, the vast majority of Gen Zers now have a general idea about what luxury is, and even quite a few have such knowledge in and before high-school age. Although Gen Z is relatively new to the luxury world and has less disposable income, they have a strong desire to upgrade to luxury as they earn more, and they are willing to purchase on credit as well. Luxury beauty and accessories are good starting points. Summer Xia
Lifestyles Analyst

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What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Covered in this report
        • Definition
        • Executive Summary

            • The market
              • The consumer
                • The generation with fair disposable income
                  • Figure 1: Monthly disposable income, December 2019
                • The generation shows great interest in better lifestyles
                  • Figure 2: Categories of interest, December 2019
                • Personal health and family are top concerns
                  • Figure 3: Important goals, December 2019
                • Luxury followers on social media skewed towards females and high earners
                  • Figure 4: Luxury followers, by gender and age, December 2019
                  • Figure 5: Luxury followers, by monthly disposable income, December 2019
                • High awareness yet low ownership of luxury
                  • Figure 6: Luxury ownership (net have received a luxury gift and bought luxury for myself), by age, December 2019
                • CHANEL takes the lead
                  • Figure 7: Word cloud of Gen Z’s favourite luxury brands, December 2019
                • Design and quality drive affection towards luxury
                  • Figure 8: Word cloud of reasons why Gen Z like their favourite luxury brands, December 2019
                • Gen Z seeks luxury-related information from online shopping venues
                  • Figure 9: Sources of information, December 2019
                • Brand-posted content wins more attention on Weibo and WeChat
                  • Figure 10: Information followed on social media platforms, December 2019
                • Increasing awareness of corporate social responsibility
                  • Figure 11: Marketing strategies that can generate favourable attitudes, December 2019
                • Huge potential for buying more luxury in the future
                  • Figure 12: Importance of luxury and willingness to pursue it, December 2019
                • What we think
                • Issues and Insights

                  • Luxury beauty guides Gen Z to the world of luxury
                    • The facts
                      • The implications
                        • Diversify content on official brand channels
                          • The facts
                            • The implications
                              • Better communicate brand history and heritage with Gen Z
                                • The facts
                                  • The implications
                                    • Figure 13: Brunello Cucinelli’s official website, January 2020
                                • Market Overview

                                  • Gen Z is shaping the luxury market
                                    • Sales and guidance of major luxury conglomerates and brands
                                      • LVMH
                                        • Kering
                                          • Richemont
                                            • Swatch Group
                                              • Hermès
                                                • Prada Group
                                                  • Burberry Group Plc
                                                  • The Consumer – What You Need to Know

                                                    • Self-discipliners versus trend seekers
                                                      • Social media breaks the physical boundaries
                                                        • CHANEL even takes the top spot in Gen Z males’ hearts
                                                          • Females value product and aura while males regard fame highly
                                                            • Friends/family is critical to bringing in those new to luxury
                                                              • Talk more about brand history/heritage on official websites
                                                                • Post-00s are not that interested in brand exhibitions and collaborations
                                                                  • Eager to know more before purchase
                                                                  • Income, Interest and Life goals

                                                                    • Half of Gen Z has RMB2,000-5,999 discretionary income each month
                                                                      • Figure 14: Monthly disposable income, December 2019
                                                                      • Figure 15: Monthly disposable income, five groups, December 2019
                                                                    • Luxury isn’t top interest
                                                                      • Figure 16: Categories of interests followed on social media, December 2019
                                                                    • Staying healthy and family harmony are top concerns
                                                                      • Figure 17: Important life goals, December 2019
                                                                    • Polarised attitudes towards life goals
                                                                      • Figure 18: Important goals, by goals Gen Z chose, December 2019
                                                                  • Luxury Followers

                                                                    • Interest in luxury grows with age for female Gen Zers
                                                                      • Figure 19: Luxury followers on social media, by gender and age, December 2019
                                                                    • Direct link to disposable income
                                                                      • Figure 20: Luxury followers on social media, by monthly disposable income, December 2019
                                                                    • Beauty, fashion, luxury go hand-in-hand
                                                                      • Figure 21: Luxury followers on social media, by categories of interests, December 2019
                                                                    • Fashionable, good looking, and exquisite life share the same value as luxury
                                                                      • Figure 22: Luxury followers on social, by important life goals, December 2019
                                                                  • Awareness and Ownership of Luxury

                                                                    • Awareness of luxury
                                                                      • Gen Zers learning about luxury brands at a younger age
                                                                        • Figure 23: Awareness of luxury brands at which age bands, by age groups, December 2019
                                                                      • Household income doesn’t impact the age they first know about luxury
                                                                        • Figure 24: Awareness of luxury brands at which age bands, by household income, December 2019
                                                                      • No city tier limitations
                                                                        • Figure 25: Awareness of luxury brands at which age bands, by city tier, December 2019
                                                                      • Ownership of luxury
                                                                        • Owning luxury is not uncommon for older Gen Zers
                                                                          • Figure 26: Have received luxury as a gift and bought luxury for myself, by age, December 2019
                                                                        • Recipients of luxury gifts are getting younger
                                                                          • Figure 27: First received luxury as a gift, by age, December 2019
                                                                          • Figure 28: First bought luxury for myself, by age, December 2019
                                                                        • Females are buying and receiving luxury more
                                                                          • Figure 29: First received luxury as a gift and bought luxury for myself, by gender, December 2019
                                                                        • Gen Zers in tier one cities tend to have higher ownership of luxury
                                                                          • Figure 30: First received luxury as a gift and bought luxury for myself, by city tier, December 2019
                                                                        • It’s not just luxury followers buying luxury
                                                                          • Figure 31: Have bought luxury for myself, by categories of interests followed on social media, December 2019
                                                                        • Giving luxury gifts is not common but has potential among Gen Z
                                                                          • Figure 32: Bought luxury for others, by disposable income, December 2019
                                                                      • Favourite Luxury Brand

                                                                        • Accumulated advantages of popular brands
                                                                          • Figure 33: Word cloud of Gen Z’s favourite luxury brands, December 2019
                                                                          • Figure 34: Ranking of top 10 Gen Z’s favourite luxury brands, December 2019
                                                                        • About a third haven’t made up their minds
                                                                          • Different preference towards luxury between genders
                                                                            • Figure 35: Gender gap of top 10 Gen Z’s favourite luxury brands, December 2019
                                                                          • Hermès has potential in lower tier cities
                                                                            • Luxury brands cannot neglect the beauty market
                                                                              • Figure 36: Favourite luxury brands, by categories of interests followed on social media, December 2019
                                                                          • What Makes Gen Z Love a Luxury Brand?

                                                                            • Design, quality, and brand awareness are key
                                                                              • Figure 37: Word cloud of reasons for Gen Z to choose favourite luxury brands, December 2019
                                                                              • Figure 38: Top 10 reasons for Gen Z to choose favourite luxury brands, December 2019
                                                                            • Friends, family, and celebrity endorsement aren’t top reasons
                                                                              • Projecting self-image and status appeal to young males
                                                                                • Figure 39: Reasons why Gen Z like their favourite luxury brands, selected attribute, by gender, December 2019
                                                                              • Brands’ outstanding attributes
                                                                                • CHANEL
                                                                                  • GUCCI
                                                                                    • DIOR
                                                                                      • LOUIS VUITTON
                                                                                        • Figure 40: Selected attributes for Gen Z to choose top 5 favourite luxury brands, December 2019
                                                                                    • Information Channel

                                                                                      • Online shopping venues also function as sources of information
                                                                                        • Figure 41: Sources of information for luxury, December 2019
                                                                                      • Fashion magazines rank third
                                                                                        • Physical stores and social media platforms are neck and neck
                                                                                          • Post-00s are attracted to WeChat
                                                                                            • Figure 42: Sources of information, by generation, December 2019
                                                                                          • Friends and family remain important for post-00s
                                                                                            • Figure 43: Sources of information - TURF Analysis for post-00s, December 2019
                                                                                            • Figure 44: Sources of information - TURF Analysis for post-90s, December 2019
                                                                                        • Types of Information Followed

                                                                                          • Official information is most sought after
                                                                                            • Figure 45: Luxury-related Information followed on social media platforms, December 2019
                                                                                            • Figure 46: Types of information followed on luxury brands’ official website, December 2019
                                                                                          • Well-balanced WeChat can build closer relationships with Gen Z
                                                                                            • Weibo is the hub for immediacy
                                                                                              • RED stands out in personal sharing
                                                                                              • Which Marketing Moves Will Work?

                                                                                                • Make sure to unlock the power of customisation
                                                                                                  • Figure 47: Marketing strategies to generate favourable attitude towards luxury brands, December 2019
                                                                                                • Awareness of social responsibility is on the rise
                                                                                                  • Pop-up events alone are not enough
                                                                                                    • Figure 48: Topic #GUCCI Pin Pop-up Store on Weibo, February 2020
                                                                                                  • Socially conscious females and adventurous males
                                                                                                    • Figure 49: Marketing strategies to generate favourable attitude towards luxury brands, by gender, December 2019
                                                                                                  • Post-00s too young to appreciate luxury exhibitions
                                                                                                    • Figure 50: Marketing strategies to generate favourable attitude towards luxury brands, by generation, December 2019
                                                                                                • Attitudes towards Luxury

                                                                                                  • Doing their homework before luxury purchases
                                                                                                    • Figure 51: Attitudes before buying luxury products, December 2019
                                                                                                  • A strong impetus to buy luxury
                                                                                                    • Figure 52: Importance of luxury and willingness to pursue it, December 2019
                                                                                                  • Second-hand luxury and limited editions from mass brands are not that attractive
                                                                                                    • Figure 53: Attitudes towards second-hand luxury and limited editions of mass brands, December 2019
                                                                                                  • The huge influence of brands’ own voice
                                                                                                    • Figure 54: Attitudes towards brands’ point of view, December 2019
                                                                                                • Meet the Mintropolitans

                                                                                                  • MinTs are buying more luxury for others
                                                                                                    • Figure 55: Luxury products are a necessary part of life, by MinTs vs non-MinTs, December 2019
                                                                                                    • Figure 56: Have bought luxury for others, by MinTs vs non-MinTs, December 2019
                                                                                                  • Young MinTs are practical about luxury
                                                                                                    • Figure 57: Reasons why Gen Z like their favourite luxury brands, by MinTs vs non-MinTs, December 2019
                                                                                                  • Responsive to corporate social responsibility
                                                                                                    • Figure 58: Marketing strategies that can generate favourable attitudes, by MinTs vs non-MinTs, December 2019
                                                                                                  • The importance of fashion shows
                                                                                                    • Figure 59: Sources of information, December 2019
                                                                                                • Appendix – Methodology and Abbreviations

                                                                                                  • Methodology
                                                                                                    • TURF Analysis
                                                                                                      • Methodology
                                                                                                        • Figure 60: Sources of information - TURF Analysis table for post-00s, December 2019
                                                                                                        • Figure 61: Sources of information - TURF Analysis table for post-90s, December 2019
                                                                                                      • Abbreviations

                                                                                                      About the report

                                                                                                      This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                      • The Consumer

                                                                                                        What They Want. Why They Want It.

                                                                                                      • The Competitors

                                                                                                        Who’s Winning. How To Stay Ahead.

                                                                                                      • The Market

                                                                                                        Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                      • The Innovations

                                                                                                        New Ideas. New Products. New Potential.

                                                                                                      • The Opportunities

                                                                                                        Where The White Space Is. How To Make It Yours.

                                                                                                      • The Trends

                                                                                                        What’s Shaping Demand – Today And Tomorrow.

                                                                                                      Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                      Description