China's post-90s (those born after 1990) are expected to contribute to 46% of China’s luxury purchases in 2021, according to joint research by Tencent Marketing Insight (TMI) and Boston Consulting Group (BCG).
China's post-90s already make up 50% of the luxury goods buyers in the country, with a fast growth rate of between 25-35 percent in the past year.
Younger consumers were likely to buy luxury items as a way to express or reward themselves, as well as to experience the brand. They also valued new shopping experiences such as more interactive online shopping or newly launching brands’ pop-up stores.
Heavy-spending consumers who spend more than 300,000 yuan (US$47,000) annually on luxury items represent 40% of the total luxury sales. The number of people in this category will grow at least 28% in the coming year and brands should focus on driving repeat purchases and brand loyalty to continue the momentum according to the Tencent report.
Consumers at large tend to switch ...
Already subscribed? Sign in.
Don't Miss Out.
Invest with as little as one bottle of water per week.
Join other top analysts and business executives and navigate the unique market with China Internet Watch.
Cancel at any time