Embrace the New Luxury Era in Post-Pandemic China Market
The COVID-19 pandemic has transformed the Chinese consumer landscape, and it’s time for brands to adapt to this new reality. Consumers are now more rational and value-based in their purchasing decisions, with a heightened focus on health and wellness. And as a result, the luxury market in China has undergone a significant shift, with consumers redefining what they consider to be a true luxury.
Here’s the new definition of luxury with a focus on the below 3 KEYS:
1. Health and Sustainability
According to a study from Nielsen, 81 percent of Millennials expect the brands that they buy into to be transparent in their marketing and actively talk about their sustainability impact.
2. Localization of Luxury Brands
A survey by McKinsey & Company proves that fact: 75% of Chinese consumers expressed a preference for products that incorporate Chinese cultural elements.
3. Experiential Luxury
Despite the Chinese market’s enthusiasm for luxury brands, with personal luxury goods sales increasing by 22% annually, experiential luxury goods still dominate, with an annual sales growth of 28%.
Business leaders must recognize that consumer and market insights are not static but constantly evolving. Crafting a business strategy that integrates consumer and market insights and embraces cultural adaptation is a critical imperative. It requires a combination of data-driven analysis, critical thinking, and a willingness to adapt to changing consumer behaviors and shifts in cultural dynamics.
Ready to seize the opportunity and embrace the change? We offer an immersive Learn-Do approach that is practiced here at SpringPillar, combining expert knowledge sharing, site visits, ideation, and content capture, facilitated by New Luxury experts. The approach is designed to open discussions in internal teams to cultivate innovative mindset and turn initiatives into measurable success for those who work with luxury.
DOWNLOAD our full China Consumer Market Insight to read more about all 4 topics (She-conomy, New Luxury, Gen-Z, Omnichannel Experience) we‘ve covered about the post-pandemic Chinese market and how to navigate through the ever-changing business landscape with an innovative spirit.