In recent years, the consumer landscape in China has undergone a significant transformation. A new generation of Chinese consumers has emerged as a crucial demographic with substantial purchasing power that now significantly influences luxury brands’ actions and strategies.
China’s luxury market is on the rise, with projections of it accounting for a quarter of global luxury sales by 2025. This growth is attributed to the influx of young Gen Z consumers, the return of Chinese travelers post-Covid restrictions, and its significance to luxury, hospitality, and real estate sectors. Despite challenges in 2022 and concerns about China’s economy in 2023, luxury watchmakers and jewelry brands are cautiously optimistic about a sales rebound in China in 2024. To tap into this growing market, brands must understand China’s middle-class and affluent consumers, projected to expand by 80 million people by 2030, constituting approximately 40 percent of the country’s population.
This report is the first in Jing Daily’s New Chinese Consumer series that explores China’s evolving Hard Luxury industry, and provides a detailed analysis of the new Chinese consumer, focusing on emerging demographics and motivations. It also examines how the past three years have shaped consumer demand for hard luxury and what brands need to understand to lay the groundwork for a rebound in sales in 2024.
Table of Contents:
- Introduction
- What is Hard Luxury?
- How China molded the luxury industry
- Spotlight interview: Julien Tornare, CEO, Zenith
- What motivates China’s new Hard Luxury consumers?
- Spotlight interview: IWC Schaffhausen
- Evolving consumer preferences
- Risks and challenges
- Conclusions
Download now to unveil insights on the new Chinese consumers.