Chinese consumers have purchased up to 47% of the world’s luxury goods in 2013, representing $102 billion.
Travelling is the main luxury category to Chinese consumers, followed by wine and spirits.
In China, the demand for luxury experiences by China’s rich consumers still increasing. As reported by a Chinese survey, two of the top luxury categories for them are wine and spirits, however travel is their first choice in regards to luxury experience.
A survey carried out by PR firm Ruder Finn which is called “Annual China Luxury Forecast”, was replied by 1.933 Chinese high-end consumers and incorporated a significant number of question about their luxury purchasing habits. The selected interviewees had an incomes average of RMB774,876 (US$125,247) and they were from 14 different cities including Hong Kong.
The survey reveals that respondents chose “travel” as their first answer when asked what kind of luxury gift they would choose for themselves or others.
According to data, around 61 percent of Chinese interviewees would select the travel for themselves, the 42 percent of them said they would select it for their spouse whereas 43 percent would choose the travel for family.
Chinese wealthy love travel above all
Chinese well-heeled consumers are disposed to spend a bigger amount of money on their trips in the next year than in any other high-end category. The survey indicates that 50 percent of Chinese rich travelers foresee to spend more on their trips while 45 of the respondents expect spend the same quantity of money than previous years.
On the other hand, related to wine and spirits (the other main luxury categories), around 41 percent of interviewees chose those products as a gift for themselves while 24 percent of them selected it for a spouse and 30 percent choose those categories as a present for family.
Despite Chinese consumers have chosen travel as their principal luxury experience category, they will earmark a significant amount of their money to other high-end products.
Besides, during their trip, more than 61 percent of Chinese consumers consider that purchase items with local features is the most important activity of their travels while shopping at luxury product destinations is in the second place with 54 percent of votes and shopping at luxury outlets occupied the third place with 47 percent of votes.
Duty free are very appealing to Chinese customers
Some of the reasons why Chinese consumers are more willing to buy luxury goods outside China is because they believe that high-end stores abroad offer better customer service and a greatest variety of products.
Another reason is that they can avoid taxes on duty-free stores which normally are located in airports. According to the survey 53% of interviewees have purchased products on duty-free shops the past year.
According to the data of last months, the luxury market in China is decreasing. However the majority of respondents have said they expect spend the same or even more amount of money on luxury categories such as watches, clothing, jewelry, shoes, handbags, accessories, beauty, cars, and wine during the next year.
Self-indulgence and presents are the two main reasons which boost the luxury purchases in China and the majority of purchases are for others. The survey shows that 48% of luxury purchases in China are for oneself and the 52% are for others.
It’s expected an increase of online luxury shopping, however most of the buyers prefer to see the product in the physical shop before purchasing.
Nonetheless, shoppers have some concerns about online shopping for luxury such as lack of trustful, the probability to purchase a product in poor condition and the incapacity to see the physical product.
Related to the customer services of physical stores, Chinese consumers believe that overseas shops offer a better service than stores in China. Their main complaints are the limited product selection and knowledgeable staff.
As conclusion, luxury goods sector continues being a potential market in China, however the offered services by brands have to fulfil the high expectations of the demanding Chinese consumers.
In order to reach to Chinese shoppers in an efficient way is vital develop a marketing strategy. Our agency understands the habits and behavior of Chinese consumers, that’s why we can help you to improve your business in China.