According to luxury experts, Chinese customers are changing their shopping habits.
China has the largest number of luxury goods consumers in the world.
Chinese people bought up to 47% of the world’s luxury goods in 2013, as reported by Fortune Character Institute. That means that an amount of $102 billion was spent on high-end items.
In 2013, the consumption of luxury products increased to 3% or in other words, in China has been spent around $28 billion in 2013.
The desire to consume luxury goods is due to the necessity of Chinese population to show their high level to others. The rise of purchasing power and the influence of Western lifestyle have boosted the luxury consumption and therefore many high-end brands have increasing their presence in China in order to take advantage of that situation.
Social media and e-commerce have a strong influence over Chinese luxury buyers. According to the Nielsen survey, around 60% of respondents seek information for purchases through social media platforms. A big number of Chinese consumers know exactly what they’ll purchase before they arrive to the store due to the 90% of respondents have planned their purchases in advance.
Due to the high price of luxury goods in China, luxury shoppers prefer traveling to buy those items.
Despite that a big amount of Chinese use the trip to visit far away countries,most of Chinese luxury shoppers prefer nearby countries such as Hong Kong, South Korea and Japan. Nonetheless, France,Italy, United Kingdom and United States are their favorite destinations to their shopping tourism.
During their travelings, Chinese tourists consider shopping as their main activity and therefore spend big amounts of time and money in purchase luxury items.
There are some reasons why Chinese consumers decide travel abroad to purchase luxury goods.
- Luxury products are up to 40 % cheaper outside China.
- Buy high-end goods in the origin country of the brand confer status and prestige.
- Chinese population believe that quality is better outsideChina.
Quality and design are the imperative features for Chinese consumers when they are buying luxury goods.
Despite the e-commerce popularity, majority of customers still prefer buy luxury items through the physical retail stores. The most popular luxury brands in China are Burberry, Gucci, Louis Vuitton, Prada and Dior, due its quality, design and heritage.
Niche luxury brands such as Tory Burch, Celine or Michael Kors are the new trend of Chinese shoppers. They are shunning traditional big brands and instead they are seeking new luxury brands due to their desire of individuality and self-expression. Shoppers that are interested in this kind of products are sophisticates, knowledgeable and have a clear personal style. They no longer shop at popular shopping locations, now they prefer smaller shops because they feel more exclusive.
Brand’s heritage is an important aspect for Chinese shoppers to make their purchasing decisions. They expect an unique story around the brand focused in the brand’s heritage, story, provenance and craftsmanship. Brands with a fascinating story to tell are able to fulfill with the consumer’s expectations.
Nowadays, Chinese luxury consumers are changing their purchasing habits and now they are seeking niche luxury goods.The reason why shoppers are exploring the niche luxury is because they are looking of brands that better reflect their style, taste and personality.
If you are interested to understand Chinese purchasing habits in order to reach better to consumers in China, don’t hesitate to contact us, we can help you with your communication.