2021
0
China Luxury for Gen Z Market Report 2021
2021-04-21T04:03:37+01:00
OX1047487
3695
136858
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Report
en_GB
“As the purchasing power of Gen Z rises, their needs and definition of luxury are also being reshaped. For Gen Z consumers, luxury is not just about individual products, but…

China Luxury for Gen Z Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“As the purchasing power of Gen Z rises, their needs and definition of luxury are also being reshaped. For Gen Z consumers, luxury is not just about individual products, but a way of life and form of emotional expression that can help them express their identities. In addition, new marketing and technology approaches, such as mystery boxes and virtual entertainment, adopted by luxury brands have strong potential to drive future growth, since they are increasingly popular among Gen Zers. With more luxury brands embracing social media and virtual entertainment, their bond with Gen Z will only solidify.”

– Jocelyn Dong, Research Analyst

This report covers the following:

  • Gen Z’s definition of luxury.
  • The luxury goods and service bought by Gen Z.
  • The spending motivations of Gen Z.

Table of Contents

  1. Overview

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

            • The market
              • Steady growth of consumption force
                • Luxury brands integrating with local culture
                  • Powered by virtual experiences
                    • The consumer
                      • Success and social status mean more
                        • Figure 1: Definitions of luxury, December 2020
                      • Spending for mental comfort
                        • Figure 2: Motivation for purchasing luxury goods and services, December 2020
                      • Limited editions with limited access
                        • Figure 3: Barriers to purchasing luxury products and services, December 2020
                      • Rising opportunity in lower tier cities
                        • Figure 4: Source of information, December 2020
                      • High-end digital products are prevalent
                        • Figure 5: Luxury products and services bought or received by Gen Z, December 2020
                      • Provide a sense of mystery through mystery boxes
                        • Figure 6: Attitudes towards luxury, December 2020
                      • What we think
                      • Issues and Insights

                        • Redefine the meaning of luxury
                          • The facts
                            • The implications
                              • Unleash the potential of virtual entertainment
                                • The facts
                                  • The implications
                                    • Expose identity through shopping experience
                                      • The facts
                                        • The implications
                                        • The Market – What You Need to Know

                                          • Luxury market for Gen Z is promising
                                            • Approaching Gen Z softly
                                            • Market Drivers

                                              • Increasing disposal income
                                                • Gen Z boast substantial spending power
                                                  • Luxury rental is evolving
                                                    • Second-hand business is catching on
                                                    • Key Players – What You Need to Know

                                                      • The potential for collaborating with virtual entertainment
                                                        • Sustainable ideas for consumers
                                                        • Competitive Strategies

                                                          • Endorsing charity ventures
                                                            • Figure 7: Zegna’s Heart of Oasi Zegna, January 2021
                                                          • Hook consumers with less expensive goods
                                                            • Figure 8: Mikimoto scarf, January 2021
                                                        • Who’s Innovating?

                                                          • Gamification experience
                                                            • Figure 9: Summoner’s Cup, Louis Vuitton with League of Legends, September 2020
                                                            • Figure 10: Virtual fashion show, July 2019
                                                          • Virtualized shopping experiences
                                                            • Figure 11: Gucci’s AR shoes, March 2021
                                                          • Localised customization
                                                            • Figure 12: Balenciaga’s customized bag, July 2020
                                                            • Figure 13: Dior Book Tote customized handbag, May 2020
                                                        • The Consumer – What You Need to Know

                                                          • Luxury delivers a sense of ceremony
                                                            • Luxury brands loving live streaming
                                                              • Take advantage of advanced consumption mindset
                                                              • Definitions of Luxury

                                                                • Luxury stands for success
                                                                  • Figure 14: Definitions of luxury, December 2020
                                                                • Social status means more to male Gen Zers
                                                                  • Figure 15: Attitude towards luxury for displaying social status/success, by gender and age, December 2020
                                                                • High earners buy for life while low earners want to show off
                                                                  • Figure 16: Selected definitions of luxury, by monthly household income, December 2020
                                                              • Spending Motivation

                                                                • Buy for a sense of ceremony
                                                                  • Figure 17: Motivation for purchasing luxury goods and services, December 2020
                                                                • Female Gen Zers buy for love while males buy for themselves
                                                                  • Figure 18: Motivation for purchasing luxury goods and services, by gender, December 2020
                                                                • High earners are more mature luxury consumers
                                                                  • Figure 19: Motivation for purchasing luxury goods and services, by monthly personal income, December 2020
                                                              • Purchase Barriers

                                                                • Inconvenience a major issue
                                                                  • Figure 20: Barriers to purchasing luxury products/services, December 2020
                                                                • Marketing to female Gen Zers
                                                                  • Figure 21: Selected barriers to purchasing luxury products and services, by genders, December 2020
                                                                • Luxury design appreciated by high earners
                                                                  • Figure 22: Selected barriers to purchasing luxury products and services, by monthly household income, December 2020
                                                              • Source of Information

                                                                • Official channels and shopping websites are key
                                                                  • Figure 23: Source of information, TURF analysis, December 2020
                                                                  • Figure 24: Source of information, December 2020
                                                                • Improve appearance in lower tier cities
                                                                  • Figure 25: Selected source of information, by city tier, December 2020
                                                                • Live streaming to entice high earners
                                                                  • Figure 26: Selected source of information, by monthly household income, December 2020
                                                              • Products Bought

                                                                • Relatively sluggish consumption
                                                                  • Figure 27: Luxury products/services bought or received by Gen Z, December 2020
                                                                • Office employees vs full-time students
                                                                  • Figure 28: High-end digital products with advanced configurations bought or received by Gen Z, by employment, December 2020
                                                                • Fans of high-end digital products
                                                                  • Figure 29: High-end digital products with advanced configurations bought or received by Gen Z, by gender and age, December 2020
                                                              • Attitudes towards Luxury

                                                                • Access to spiritual comfort
                                                                  • Figure 30: Attitudes towards luxury, December 2020
                                                                • Potential for mystery boxes
                                                                  • Figure 31: Attitudes towards purchasing mystery boxes of luxury branded products, by gender and monthly personal income, December 2020
                                                                • Opportunity for Nijigen and mobile games
                                                                  • Figure 32: Attitudes towards luxury brands collaboration with Nijigen and mobile games, by only child and monthly personal income, December 2020
                                                                • Live streaming is booming and worth trying in lower tier cities
                                                                  • Figure 33: Selected attitudes towards luxury, by city tier, December 2020
                                                                • Advanced consumption scenarios
                                                                  • Figure 34: Attitudes towards overspending for most trendy luxury brands or services, by only child and monthly personal income, December 2020
                                                              • Meet the Mintropolitans

                                                                • Satisfied so far with gorgeous ads
                                                                  • Figure 35: Barriers to purchasing luxury products and services, December 2020
                                                                • More likely to have advanced consumption
                                                                  • Figure 36: Attitudes towards overspending for most trendy luxury brands or services, December 2020
                                                              • Appendix – Methodology and Abbreviations

                                                                • Methodology
                                                                  • Abbreviations

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