Luxury China Report 2019

You will find in this article top Report about luxury (2019)

 

Chinese luxury consumers

Consumers between 23 and 38 are willing to spend on luxury brands and financially able to do so. According to the HSBC Beyond the Bricks study (see Figure 4), 70% of Chinese millennials own their own homes, twice as much as US millennials. UU. And they can get funds from their parents if they want to buy fancy items. In addition, these young consumers are well informed about luxury and eager to adopt innovative trends, such as the convergence of high fashion and sportswear. Millennials are the great market for luxury sportswear products such as the Balenciaga Triple S shoe, which was introduced in 2017 and maintained its popularity throughout 2018, and accessories created by Louis Vuitton and Supreme, a fashion brand with roots in skateboarding.

 

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China luxury report

source Bain

 

The third engine that drives luxury sales in China, digitalization covers both electronic commerce and consumer participation through digital platforms. There has been a lot of progress in terms of attracting customers, but little progress in the front of electronic commerce (despite a lot of activity). Online luxury sales increased 27% in 2018 to reach 10% of total luxury sales (see Figure 5), but this growth is still driven by cosmetics, while online penetration in other categories It is still very low.

The third engine that drives luxury sales in China, digitalization covers both electronic commerce and consumer participation through digital platforms. There has been a lot of progress in terms of attracting customers, but little progress in the front of electronic commerce (despite a lot of activity). Online luxury sales increased 27% in 2018 to reach 10% of total luxury sales (see Figure 5), but this growth is still driven by cosmetics, while online penetration in other categories It is still very low.

In 2018, more brands sought ways to expand their online presence through collaborations with major e-commerce platforms, while others maintained a focus on their brand.com.

It was also a year of great activity, which included the following highlights:

The investment of $ 175 million from JD.com and L Catterton in Secoo
Acquisition of Richemont from Yoox Net-a-Porter (YNAP)
The strategic partnership of YNAP with Alibaba Group
The merger of JD.com Toplife with Farfetch
As a result of this intense negotiation, we see three types of ecosystems emerge: those centered on a brand.com and those built in collaboration with Alibaba Group or JD.com (see Figure 7).

source Marketingtochina

China’s unique and ever-changing market creates exciting opportunities.
Rather than trying crystal ball predictions, here is my summary of what this year can show us next year and points to watch out for.
The Chinese asked questions about the Chinese

D & G – and the reactions to his promotional videos described as racist and sexist, as well as the anger provoked by the insulting words of his co-founder, Stefano Gabbana – should finally serve as a wake-up call for any brand that “n ‘ do not listen to his collaborators. China.

Story in China

This is the story of how a new generation of Chinese consumers are
to fuel the global luxury market, and the double-edged sword they present
top luxury brands of the world.

 
Defined to be the driving force of the global spending on high-end shoes, bags,
fashion, jewelry and watches, wealthy upper middle class gifts an attractive perspective for the world designer brands.

 

The most obvious growing expectation that brands may have key opinion leaders (KOLs) is undoubtedly the direct return on investment (ROI).
Still, it is unlikely to become a general requirement of all brands – some are satisfied with the brand image, image, long-term hoarding effect of a KOL celebrity.
Michelle Ye was one of the first Chinese KOLs.
She made a name for herself in 2010 by sharing her perspective on life with her fans in a blog that was viewed a million times in just 10 months.
She then launched her own very successful fashion brand in 2015. source

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