Top Report about Luxury China
KOL is a buzz word in China
A single buzzword is needed - digital ecosystem - to talk about the reality of Chinese applications. We now see smart brands using WeChat - and some very smart brands, such as Singapore Airlines (and recently Shangri-La Hotels and Resorts) partnering with key applications such as the Fliggy online travel platform, to help to better connect with their customers.
personalization
Real personalization, whether engraved names, the ability to choose and choose from a wide range of options, very limited editions, etc., are all tools to implement to build the finish luxury.
With Chinese consumers, there is an additional opportunity to "customize" something specifically to Chinese requirements: MAIA Active's customers, the Chinese fashion brand Athleisure, reacted very positively to the idea that their numbers differed from " Western numbers "and needed differently (specially). clothing designed. Other brands should take advantage of this opportunity and, judging it carefully, customize and specialize. A more realistic expectation of brands will be that KOLs not only use their channels, but their creativity. A real KOL has your finger on the pulse or any appendage of the part of the body that you like the most metaphorically. The KOL-brand collaborations that work best and which are KPIs (Key Performance Indicators) are those that are involved, cooperative and, unfortunately, with a buzzword, but with real synergy.
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CHINESE LUXURY SOCIETY
Luxury concierge clubs that deal with the extravagant demands of their guests, including renting a private island in the Maldives and offering a $ 2 million sports car at a sale to auctions in London, quickly become indispensable for the Chinese elite.
The British luxury club Quintessentially was founded in 2000 and serves 250,000 customers worldwide, making it one of the oldest and most important luxury lifestyle management services in the world. However, 10 years ago, there were no customers on the Chinese mainland.
However, their different consumer behavior vis-à-vis digital applications will certainly lead to a group of new marketing strategies in the Chinese industry. Each detail of the plan must apply numerically.
McKinsey & Company announced in a new report on April 26 that China's luxury spending does not seem to be running out of steam over the next few years. He predicted that Chinese buyers (domestic and foreign) would spend about $ 180 billion (RMB 1.2 trillion) in luxury goods by 2025, accounting for 40 percent of global consumption. The forecast almost doubled the country's current expenditures, which amounted to 115 billion dollars in 2018.
A change in ultra-rich Chinese consumer groups and behaviors occurred that 4 there are 6 trends are happening.
- Mobile super apps catch half of the attention of netizens.
- Influencers or KOLs is the main force to affect luxurious
- Wechat official account and mini program become the basic tool for communications to customers
- Research Online Purchase offline(ROPO) is the popular way of purchasing luxuries nowadays.
- Digital marketing covers all province of China, a chance to stimulate lower-tier cities conversion rate on luxuries purchasing.
- E-commerce takes a great proportion on online sales, but social media shopping rises abruptly. further readings
The new report by the global consulting firm, "How Young Chinese Consumers Restructure Global Luxury," examines the habits and behaviors of the world's largest luxury consumers. Despite the current economic uncertainty,
McKinsey is confident that China will play a decisive role in the global luxury goods market. According to the report, the growing number of middle-class households is one of the pillars of growth, indicating that 350 million Chinese people in China will earn between $ 2,600 and $ 3,900 per month and per household by 2025.
D&G in China
China's unique and ever-changing market creates exciting opportunities.
Rather than trying crystal ball predictions, here is my summary of what this year can show us next year and points to watch out for.
The Chinese asked questions about the Chinese
D & G - and the reactions to his promotional videos described as racist and sexist, as well as the anger provoked by the insulting words of his co-founder, Stefano Gabbana - should finally serve as a warning signal to any brand that "n ' do not listen to "his people.
- China.
And there was one last factor of differentiation: many larger and more established brands benefited from their scale advantage.
- With everything from rents to salaries, marketing events and the commitment of increasingly expensive thought leaders, transaction costs are rising in China. The trend has tended to favor major brands in 2018.
- Look forward
Turbocharged engines inevitably lose steam. China's economic growth is slowing down, albeit in a controlled manner.
- Real estate prices should stabilize, reducing the positive effect of wealth on Chinese households.
- Nevertheless, luxury brands can expect a promising year in China. Sales of luxury goods will remain healthy, although they can not keep up with growth of 20%. Growth among young people under 25 seems more likely in 2019.
This expansion will result from the same positive forces that made 2017 and 2018 so strong. The Chinese government should maintain the adjustment of import duties to encourage domestic consumption and reduce the VAT rate. It is also likely to continue to impose strict controls on passengers and parcels at
customs and to monitor more
closely the army of "daigou agents" who buy abroad for local consumers.
- And brands will continue to narrow the price gap with foreign markets.
Chinese millennia will not lose their taste for luxury goods, nor their willingness to buy.
- A recent UBS survey found that 71% of Millennials had a positive financial outlook and 81% expected an increase in their income. Meanwhile, the Chinese middle class will continue to grow.
- The drivers of luxury goods sales in China may not be unstoppable.
- But they show no sign of stall.
Overall, affluent Chinese consumers bode well for global luxury consumption in the coming years. Chinese consumers and global luxury brands will continue to form and reshape themselves. It is also likely that big hit brands like Hermes, Louis Vuitton, Dior and Gucci will continue to lead because of their fatal mistakes like Dolce & Gabbana.
According to McKinsey, about half of the consumers surveyed after the 1980s and 1990s believed that sales staff had to provide not only regular updates on product information, but also much more. This young generation expects a personalized service approach, which consists of choosing accessories based on an intimate knowledge of the client's personality, previous purchases or preferences, and helping them to
participate in fashion shows or parties. - more as a friend than as a salesman. .
In addition, sales staff is an important pillar in creating a seamless omni-channel shopping experience for consumers, the report says. While digital and e-commerce are becoming increasingly popular in luxury brands, Brink and Mortar Stores still play a critical role in customers' s
hopping decisions.
