This paper aims to provide some forward-looking insights into these important topics.
- How important will affluent Chinese consumers be in the future?
- How do these consumers differ from their international counterparts?
- How to engage them when they travel abroad?
- What is needed for a luxury brand to maintain a sense of exclusivity?
- What role will brick-and-mortar boutiques likely play in the future?
Who are China's Affluent Consumers?
Chinese consumers account for about one-third of the world’s total spending on luxury, even though only 8% of such consumption takes place on China’s mainland. It is estimated that, by 2025, some 7.5 million affluent Chinese households will be spending Rmb1 trillion (US$147 billion) on luxury goods, this representing a year-on-year growth of 25% since 2016. It is little wonder that China is a top strategic priority for lifestyle and luxury brands.