China's Millennial Generation Is The Mainstream Of Luxury Goods "Paying Customers".

With the rise of China's millennial generation, they also have a huge desire to buy luxury goods.

Unlike the old generation, the millennials no longer buy the classic luxury goods. They prefer to pursue products that match their tastes and styles.

In order to curry favor with the new and dynamic millennials, luxury brands are constantly exploring pformation.

Recently, Ogilvy China released a new white paper on luxury brand consumer research in China: "making luxury brands more meaningful".

The report points out that the Chinese millennials now have a huge desire to buy luxury goods. The report stresses that the total consumption share of Chinese people aged 19 to 30 will increase from 45% in 2016 to 53% in 2020.

In addition, in the next six to seven years, 70% of the growth of luxury goods will come from China.

By 2024, China's luxury consumers will account for 40% of the total global luxury goods consumption, compared with 32% in 2017.

2/3 of the luxury consumers are between 18 and 30 years old.

The millennial generation has changed a lot in terms of consumption habits, which has made it impossible for the luxury goods to develop step by step.

If we do not keep up with the trend, we can only be eliminated by the market.

Ogilvy China has proposed that luxury brands need to meet several aspects of consumer behavior in order to establish long-term contacts with them.

For example, Chinese prefer custom made goods and unique products, rather than "drift with the tide".

To meet the needs of consumers, the report suggests that a brand's product portfolio needs to reflect a variety of consumers' styles.

Personalization and customization can help luxury brands win consumers' favor.

In terms of product mix innovation, Gucci (Gucci), Louis Weedon (Louis Vuitton) and other brands are in the right direction, and actively cooperate with tide brands.

In terms of product design, luxury brands are mainly diversified, and this style can meet the needs of different consumers.

Kering, Gucci's parent company, said its organic sales increased 23% to 3 billion 700 million euros in the fourth quarter of last year.

Louis Weedon, the owner of Dior brand (Dior), France luxury group LVMH, said revenue grew 16% to 12 billion 500 million euros in the first quarter of this year.

Last year, the group's profit reached 6 billion 400 million euros.

Ogilvy China pointed out that creating rarity is also the key to establishing contacts with consumers.

For example, luxury brands can regularly launch limited money or related series that match different interests and interests of consumers.

In addition, personalization or customization can also create rarity.

For example, Louis Weedon had previously co operated with Supreme, a street wave brand big brother, and was widely praised by young people.

Compared with Kai Yun group and Lu Wei Ming Xuan group, about 1/4 of sales from China's Prada (Prada) performance is not so good-looking.

Prada's revenue grew 2.8% last year to 3 billion 140 million euros, lagging behind its peers.

As for how to build relationships with customers faster, Ogilvy China suggests that luxury brands offer popular or entry-level products to attract younger consumers.

In addition, a full range of customer experience is also a way to attract consumers.

It is worth noting that the application of social commerce in luxury marketing is booming because social media has become the most influential form of media in all the factors that may affect the purchase of luxury goods.

Ogilvy China said that the brand can adopt some "friendly" ways to attract consumers, rather than holding a high cold mentality.

Mickey Chak, chief strategy officer of Greater China in Ogilvy, said that luxury brands entering the Chinese market have known that today's consumer market is quite different from before.

Compared with Western consumers, China's new generation of middle class is more complex, diverse and excellent, and their decisions affect the global luxury consumer market.

In the face of changes in China's luxury market, the industry believes that those with bigger scale and higher brand awareness will have better development in the future.

Author: Chen Qing