China Attitudes towards Luxury Consumer Report 2024
£ 3,695 (Excl.Tax)
Report Summary
Embracing the rise of experiential luxury consumption and developing brand localisation narratives will help brands gain long-term market recognition.
Blair Zhang, Senior Analyst, China Insights
Market Definitions
Luxury goods refer to high-priced products offered by recognised luxury brands, including fashion items and leather goods (such as bags, clothing, footwear, hats, belts), perfumes, fragrances and cosmetics, jewellery, watches, as well as digital products with high-end configuration (such as Apple, Alienware), high-end household appliances (such as Dyson), art collectibles and other products (such as furniture, home goods), excluding luxury cars.
Luxury services include fine dining (such as Michelin restaurants), premium travel (such as five-star hotel stays, first-class flights) and customisation services from luxury brands.
Luxury brands include Hermes, Louis Vuitton, Chanel, Prada, Gucci, Christian Dior, Cartier, Piaget, BVLGARI etc.
Table of Contents
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Executive summary
- Definition
- What you need to know
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Market overview
- Global economic moderate recovery
- China's economy shifts to high-quality development
- Graph 1: GDP (RMB100m) and year-on-year growth rate (%), 2014-24
- The overall financial situation remains stable, and consumer confidence moderately recovers
- Graph 2: confidence in consumption in three months, 2020-24
- Graph 3: change in financial situation compared to last month, 2020-24
- Countering uncertainty becomes an important financial management goal
- Travel and gourmet food become top choices for discretionary spending
- Development in cultural tourism industries brings new dialogues and opportunities in wellness tourism
- Graph 4: social media interaction mention – wellness tourism, July 2023-June 2024
- Luxury brands set up shops in resorts to establish links to lifestyle scenarios
- Experience economy creates more business opportunities
- Experiential luxury consumption becomes a trend of long-term growth
- Graph 5: changes in spending on luxury goods and services over the past six months – have spent on it, 2023-24
- Graph 6: desire for luxury goods and services – desire a lot, 2020-24
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Luxury consumption trends
- Revenue growth of major global luxury groups slowed in 2023
- Luxury consumer groups did not expand
- Future budget increase willingness is stronger among middle-level consumers
- Graph 7: plan to increase or decrease budget for luxury goods/services in the future, by the amount of luxury consumption in the past year, 2024
- Bags and fashion accessories have the highest purchase rate, with high-end tourism showing potential for future growth
- Graph 8: luxury goods/services purchasing behaviour in the past 12 months and purchase plans for the next 12 months, 2024
- Most respondents still consider luxury goods an indispensable part of life
- Graph 9: necessity of luxury in life, by gender, 2024
- The traditional image of luxury goods is further fading, with consumers continuing to value mental satisfaction
- Graph 10: consumer definition of luxury, 2016-24
- Experiential and tangible luxury consumption both have appeal
- Graph 11: interest in luxury products vs luxury experiences, by luxury purchases, 2024
- Most consumers prefer to wait rather than downgrade brand choice
- Graph 12: brand choice under budget constraints, 2024
- Chinese consumers' acceptance of second-hand luxury products increases
- Graph 13: attitudes towards second-hand luxury products, 2019-24
- Brands' attitudes towards the second-hand market vary
- Domestic channels become consumers' preferred choice for purchasing luxury goods
- Graph 14: purchasing channels for luxury goods, by whether they have bought luxury goods, 2024
- Brands actively extend digital experiences
- Enhancing service experience is key to attracting consumers
- Graph 15: factors increasing the favourability of luxury brands, 2024
- The value of craftsmanship continues to stand out
- City style, local cultural customs and local industries are important entry points for luxury brands to initiate localised narratives
- Brand shows, live streams and films can help luxury brands reach over 80% of their target consumers
- Louis Vuitton combines show events with live streaming
- Chanel has widespread brand influence
- Graph 16: favourite luxury brands – top 11, 2024
- Key opportunity points
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Target group opportunities and insights
- Lower tier city consumers
- Compared to Tier 1 cities, lower tier city consumers may have a wealth gap, but their relatively lower living costs allow them more freedom in consumption
- For everyday consumption, lower tier cities prefer travel, shopping, and children's education
- Graph 17: ways to spend extra money, by city tier, 2024
- In terms of lifestyle, consumers in lower tier cities often prioritise family and social relationships
- Graph 18: decision-making for household affairs – joint decision-making with spouse, by city tier, 2024
- Graph 19: lifestyle attitudes, by city tier, 2024
- Brands can focus on the psychological drivers of gift-giving scenarios and fashion trends
- Luxury brands have significant growth potential and space in lower tier cities
- Graph 20: purchased luxury watches (b) in the last six months, by city tier, 2023-24
- Graph 21: purchased luxury jewellery and accessories (a) in the last six months, by city tier, 2023-24
- Tier 2 cities have the capability for luxury consumption
- One important driver of this consumption growth is the geographical expansion of luxury boutiques
- Consumers in lower tier cities are still driven by traditional luxury values, such as heritage, prestige and social status
- Graph 22: definition of luxury, by city tier, 2024
- Use different interactive ways to appeal to consumers in different city tiers
- Graph 23: factors increasing the favourability of luxury brands, by city tier, 2024
- Tier 1 cities: enhance brand loyalty through quality tangible experiences
- Brands need to expand their product and service offerings with a long-term perspective
- Tier 2 cities: offer lower-threshold lifestyle experiences
- Co-branding may create surprising revenues for luxury brands
- Tier 3 and lower cities: build brand awareness through wider touchpoints
- Enhance favourability through cross-category co-branding
- Case study: GUCCI and QQ Music's cross-category collaboration – elevate multi-sensory experiences in line with the local entertainment spirit
- Mintel Trend: Culturally Connected
- Luxury brands need to integrate various localisation elements to create unique local market communication strategies
- Graph 24: localisation initiatives of luxury brands that interest consumers, by city, 2024
- For example, deeply understand and utilise the influence of city spirit…
- …and communicate a brand lifestyle with local characteristics
- Key opportunity points
- Younger consumers (Gen Z)
- Gen Z consumption hotspots: food, leisure activities, electronics, self-improvement
- Graph 25: spending plans for extra money, by generation, 2024
- Gen Z values the additional value of consumption – such as aesthetic value and social currency value
- Graph 26: definition of product worth, by generation, 2023
- Younger consumers prefer brand images with humour and authenticity
- Graph 27: favourite brand archetype, by generation, 2024
- Gen Z tends to define success from multiple dimensions, focusing on personal satisfaction and psychological experiences
- Graph 28: definition of success – Gen Z, 2023
- Graph 29: definition of success, 2020-23
- They tend to be fashion trendsetters
- Graph 30: sources of outfit inspiration, by generation, 2023
- Mintel Trend: Trading Up
- In terms of luxury consumption, Gen Z pursues indulgence and individuality
- Graph 31: definition of luxury, by generation, 2024
- Brands need to offer true personalised services
- Over 60% of Gen Z considers luxury an indispensable part of life
- Graph 32: attitudes towards luxury, by generation, 2024
- Most of Gen Z only pursue luxury brands they genuinely like
- Graph 33: brand choice under budget constraints, by generation, 2024
- Gen Z rejects second-hand luxury goods, not willing to compromise on happiness
- Graph 34: attitudes towards second-hand luxury goods, by generation, 2024
- They also tend to buy luxury goods through domestic channels
- Graph 35: luxury goods purchase channels, by generation, 2024
- Gen Z consumers plan to increase spending on high-end apparel and electronics
- Graph 36: luxury goods/services purchasing behaviour in the past 12 months and purchase plans for the next 12 months – Gen Z, 2024
- But overall, compared to other generations, the purchasing power and willingness of Gen Z can still be stimulated
- Graph 37: luxury goods/services purchase plans for the next 12 months, by generation, 2024
- Graph 38: luxury goods/services purchasing behaviour in the past 12 months, by generation, 2024
- Gen Z values digital experiences, and co-branding appeals to them
- Graph 39: factors increasing the favourability of luxury brands, by generation, 2024
- Brands can engage with young consumers through novel and interesting digital and interactive experiences
- Podcasts may become a new medium to reach Gen Z
- Graph 40: preferred formats to learn about luxury brand localisation initiatives, by generation, 2024
- Podcasts may become a long-term brand development strategy
- Localisation communication strategy for Gen Z: tie in with local specialty industries, cuisine and popular entertainment activities
- Graph 41: interested luxury brand localisation initiatives, by generation, 2024
- Pay close attention to entertainment activities that younger people are passionate about
- Luxury brands crossing into the food industry has become a new topic to capture younger consumers
- Leverage hobby marketing to attract younger consumers
- The youthful communication narrative has proven effective…
- Graph 42: aspects that consumers are satisfied with when purchasing luxury brand products, by generation, 2024
- …but brands still need to amplify their brand philosophy, such as focusing on long-term environmental protection
- Key opportunity points
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Future opportunities
- 2024 China Consumer Trend: Relationship Renaissance
- Trends
- Products emphasising long-term companionship and healing power will gain market favour
- Marketing language closely linked to consumers' life scenarios helps explore deeper brand relationships
- 2024 China Consumer Trend: New Green Reality
- Trends
- Brands need to develop sustainable business cooperation models
- Brands should apply environmental concepts to products and develop brand uniqueness under the sustainability theme
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What we think
- Keys to success
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Appendix – methodology and abbreviations
- Methodology
- Abbreviations
- Appendix: luxury spending over the past six months – have spent on it, by city tier, 2023-24
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