The Chinese luxury market is currently undergoing major shifts, from the migration of customers from offline to online to the increasing percentage of consumers buying directly from mainland China.
According to Forbes, 98% of all active internet users in China are mobile users. Adding on the fact, there is no age barrier for mobile penetration in China. This maximizes the brand’s potential e-commerce market value, and the ability to reach everyone from 8-80 years old. Although the 18-25 – year old still holds the main purchasing power. Hence Chinese luxury spending surpassed $115 billion last year and is expected to deliver over 65% of total growth from now until 2025, driven by trends set from the new generation of consumers.
Overview of users the domestic and overseas luxury brands
Chinese millennia and female spenders are the biggest users of luxury goods. They prefer products and brands that speak to their personal interests, whether they are personalized goods, endorsed by their favorite KOL influencer or celebrity.
Therefore, the main marketer´s focusing on luxury brands for this period are the following:
- the growth of
- female consumers
- KOL influencer marketing
- nationalism, personalization
Although this data can seem abstract, it is nonetheless essential in order for brands to understand who their target customers are and what they want. Quantitative data, combined with practical operational insights, is essential in order to craft a relevant marketing and distribution strategy in the fast-moving Chinese luxury market.
However, because these e-commerce platforms are very popular in China, it’s not easy to sell on these platforms. Most of them only accept brands that have already a significant presence and realized high sales in China. That’s why some of the luxury brands failed to sell on the giants’ platforms, Tmall, Taobao or JD.
Why is a smart idea to book a first consultation about Luxury Market in China
Most businesses lack strategic and effective leadership. Without real experience in the Chinese market, most newcomers to the entrepreneurial fray struggle with the overwhelming amount of demands placed on them. When problems do arise, which they often do, navigating those murky waters becomes an impossible task. That’s why businesses, big or small, need to build up their board of seasoned counselors and find trusted mentors if they’re serious about longevity.
To prevent the problem, of not having a suitable e-commerce platform, or having a right KOL influencer for your brand, we would be happy to consult these important tasks with you. We will explain to you, what are the latest luxury marketing trends – which are shaping the future of luxury brands – and also, how your brand can stay on top of their China game for 2020.
Gentlemen Marketing Agency is an agency’s success.
We believe in brands; we love them. We collaborate closely with International Luxury brands to understand their roots and offer everlasting digital vision through Concept, Branding, User experience, Website Design, Communications & Advertising.
We are the most visible Digital Marketing Agency for China you will find on the web.
- Baidu Search Engine Optimization,
- Native Advertising,
- WeChat & WeChat Store
- KOL & PR.
For more information get in touch with us today.