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    2019 China Luxury Products Report Brand, Please Don'T Just Please The Millennial Generation.

    2019/1/17 9:06:00 31

    Millennials

    In January 15, 2019, Rhodes's public relations and market research firm's precision Market Research Center jointly released the "2019 China luxury goods report" in Beijing. After 2009, it announced the eighth important indicators of the luxury market in mainland China and Hongkong.

    The survey is based on 1385 consumers from mainland China and Hongkong, covering more than 130 cities and regions in the country. 1075 of them are from mainland cities and 310 from Hongkong, China.

    The average annual household income of mainland respondents was 1400930 yuan, while Hongkong area was 975286 Hong Kong dollars.

    Consumer confidence is optimistic

    Taking a look at the overall consumption situation, mainland Chinese consumers spent nearly 230 thousand on luxury goods in 2018. In Hongkong, 176 thousand Hong Kong dollars per month, including jewellery watches, clothing slopes, leather accessories, beauty cosmetics, electronic products, automobile alcohol and tourism, were purchased in mainland China.

    Among them, mainland consumers prefer to buy clothes and jewellery while the Hongkong area will spend more money on high-end travel.

    This trend will also affect the next 12 months.

    In the coming year, both respondents expressed confidence in consumption.

    Despite the impact of the macroeconomic environment in 2018, 46% of mainland Chinese consumers and 32% of Hongkong consumers said they would increase their spending on luxury purchases in the coming year.

    More than 5 of mainland Chinese consumers will increase their consumption of electronic products, beauty products and cosmetics and clothing, while Hongkong consumers will spend more than 4 of them on electronic products.

    In mainland China, consumers over the age of 46 are most optimistic about the outlook. Hongkong has the strongest confidence in the Z generation from 21 to 25 years old.

    This means that luxury brands should work for a wider group of people, not just for the millennial generation.

    The millennial generation has become the main force of global luxury brand competition in recent years.

    In the 2019 China luxury goods report, the millennial generation between 26 and 35 years old is the most comprehensive consumer group in Hongkong and the mainland of China. However, in terms of single category purchases, the Z generation in mainland China between 21 and 25 years old and those aged 46 or above in Hongkong showed stronger strength. Most of the spending was ranked first, indicating a totally different consumption pattern in the two markets.

    People over the age of 46 in Hongkong, who are the highest average income in the region, naturally have higher purchasing power.

    The strong consumption performance of the Z generation once again proves that the luxury consumption crowd in mainland China is further younger and the young people are willing and willing to spend.

    .

    As for the reasons for purchasing luxury goods, Hongkong consumers value quality of life, while mainland Chinese consumers will pay equal attention to personal taste and quality of life.

    Compared with the previous report on luxury goods in China, the mainland Chinese consumers have changed from the outward oriented "displaying social status and expressing their personal tastes" to "improving their quality of life", reflecting the growing maturity of consumer attitudes in mainland China.

    Chinese consumers are still keen on traveling and shopping. Hongkong is the most popular destination.

    At the same time, the report also shows that travel still leads to strong luxury consumption.

    Mainland Chinese consumers travelled 2.8 times overseas in 2018 and 3.3 in Hongkong.

    When making travel plans, nearly 30% of the budgets of mainland consumers are left for shopping, while Hongkong consumers have an average budget allocation for hotels, restaurants, pportation and shopping.

    Japan has become the preferred country for Hongkong consumers to travel abroad and shopping, while consumers in mainland China regard Hongkong as the preferred area for overseas tourism and shopping.

    Among the factors that drive overseas shopping, Hongkong consumers are most concerned about prices. Chinese consumers value the popularity of products and their better quality abroad. This further shows that brand building and promotion in the Chinese mainland market will also benefit brand global sales.

    The price factor is only mentioned by 23% of mainland Chinese consumers.

    According to Simon Tye, executive director of the center for precision marketing research, "Hongkong consumers are more concerned about the convenience of pportation while choosing their destinations. The mainland consumers are more concerned about their local culture and history. Because they like to travel with their families, they also care about the convenience of paternity activities on the ground, but this is not so important for Hongkong."

    The influence of digitalization is increasing, and traditional media is still effective.

    This means that today's brand operators should be more global thinking, which is also driven by the popularity of the Internet.

    With the full development and maturity of the digital channels, the online shopping crowd has expanded further, reaching 84% in mainland China and 71% in Hongkong. The millennial generation has become the most frequently purchased online luxury group.

    Compared with Hongkong, mainland Chinese consumers are more willing to buy luxury goods online, and over 7 of them are willing to consume online all kinds except cars.

    Hongkong consumers pay more attention to price concessions when choosing online consumption, and choose to buy on the brand official e-commerce website. Consumers in mainland China care more about browsing product information, and are more willing to buy on Jingdong and Tmall, reflecting the leading position of comprehensive e-commerce platform on the mainland China's shopping market.

    Digitalization has already affected about 70% of luxury sales in mainland China and 60% Hongkong. Among them, online shopping is the main shopping mode.

    At the same time, the vast majority of luxury purchases actually still take place online, so the establishment of innovative, high-quality brand full channel shopping experience has become an inevitable trend.

    Digital channels have become the most important channel for Chinese luxury consumers to get brand information. The top four consumers in mainland China are from digital channels, but newspapers and magazines are still important to Hongkong. They are ranked third in brand name official website and Facebook social platform.

    Traditional media TV and print ads are the most effective drivers of luxury purchase decisions, while Hongkong consumers are most concerned about word of mouth and print advertising.

    What is the focus of the luxury industry in 2019?

    Based on this, in 2018, many brands performed well, not only in the channel development, but also in the establishment of a more diversified brand image.

    The best performance of the watch industry is Rolex and Cartire. The jewelry industry is different in the performance of Hongkong and the mainland. Cartire, Tiffany and Chanel are the three most famous brands in Hongkong, while the mainland is Cartire, Dior and Dior.

    In the fashion industry, Chanel, Gucci, Dior and Louis Weedon rank the top four in the Hongkong area. The mainland is Hermes's top ranking, followed by Gucci, Dior and Chanel.

    Over the past 12 months, Chanel, Gucci and Dior are also the most popular brands visited by consumers.

    In bags and leather products, Gucci, Louis Weedon and Chanel ranked the top three in Hongkong, while Hermes, Gucci and cardot in mainland China.

    Over the past 12 months, Gucci, Louis Weedon and Hermes are the most popular brands visited by consumers.

    In terms of cosmetology and cosmetics, Hongkong consumers recognize Chanel most and Estee Lauder in mainland China.

    Over the past 12 months, the most popular brands visited by consumers in Hongkong were SKII, Chanel and Shiseido, while Estee Lauder, Chanel and Lancome in mainland China.

    Estee Lauder has performed well in the mainland market and has taken the lead in recognition and consumer buying.

    The experience of these brands is to keep innovating basically in the market changing situation, and build a flexible and diversified brand system.

    Simon Tye, executive director of the center for precision marketing research, said: "as digital technology brings consumers unprecedented information, brands must constantly innovate in products R & D, marketing and other fields, and continue to lead the trend.

    At the same time, luxury goods must be the best in every detail, especially online and offline experience.

    Rhodes, senior vice president of Asia and general manager of luxury business in China, also said to the interface fashion: "nowadays in this era of great change, it is hard to say that brands can rely on a single strategy to succeed. They need to grasp multiple opportunities in time, and need to know more about the Chinese market, with more diversified strategies and adjusting measures to local conditions.

    In 2019, the luxury industry will continue to strengthen the marketing work for the precise crowd, especially for those brands that are emerging into the Chinese market. This environment is challenging. How to find effective ways in the situation of increasing the cost of communication, and how to create and serve consumers well in the mainstream value system of China is a matter for the brand to consider.


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