According to the ‘Luxury experiences in China’ report by KPMG. digital media is playing an increasing important role in the luxury buying habits of chinese luxury consumers.
As we are all more than aware, China’s role in the world’s luxury market is becoming more and more important. Earlier today we produced an article discussing International Luxury Brands flocking to the Hong Kong stock exchange to perform IPO’s. It’s often been a perception that Luxury Chinese consumers are driven by status looking for opportunities to demonstrate their wealth. However according to KPMG this is an over-simplification, as just as in the West it appears that luxury purchases are made just as much for want than display. Chinese luxury consumers are buying luxury goods for emotive reasons, self reward and need based factors. Their is also another sector of the luxury consumer market in China that buy for the sole purpose of collecting and connoisseurship.
The motivations for luxury purchase and consumption are as follows:
1. To reward myself
2. To pamper myself
3. For an import occasion
4. To enjoy the high life
5. To reflect taste
6. To represent social status and wealth
7. For value and appreciation
8. For collecting
9. To stand out or be fashionable
10. To reflect ones personality
Chinese luxury consumers do their research online
The luxury brands that are targeting the Chinese market also realise that aside from the time worn method of promotion via authorised outlets, digital media is proving to be a far most cost effective route to market. This is evident from the design, functionality and resources put in their own websites and reliance on online Luxury publications such as Luxurious and blogs to promote news and products. Although online media is extremely popular for chinese luxury consumers, when it comes to purchasing the trend is very much still towards purchasing high priced goods in authorised outlets.
The KPMG report states that NO luxury brand can aford to dismiss the internet in its sales and marketing strategy. Nearly 70 percent of respondants
Chinese luxury consumers prefer European luxury brands to Asian luxury brands
chinese luxury consumers also clearly identify certain luxury products with geographical areas, for example Watches and Switzerland, Fashion with France and Footwear with Italy. Their also seems to be a loyal following towards European luxury brands as opposed to Asian Luxury Brands, even though the quality gap is clearly narrowing Chinese luxury consumers feel more comfortable in historic and internationally established brands.
How Chinese luxury consumers spend their money
For Experience:
Hotel and Resort Stay
Overseas Travel
Spa and Beauty Treatments
Yoga and Fitness Centre Memberships
Connoisseurs:
Expensive Wines
Uniquely Designed Jewellery
Luxury Watches
Art / Calligraphy
Antique and Bespoke Furniture