China luxury product marketing: key facts and trends

Hi there,

While this post focuses on China luxury product marketing, it is part of a series about China that I have been writing in 2019. You can find more of them below:

China OTT subscription landscape: 8 key facts and trend

China influencer marketing – 8 key facts you need to know

China mobile games : 8 key facts and trends

China (the largest retail market in the world): key facts and trends

8 Key facts about china advertising landscape

9 key facts about China digital landscape

1. China is the largest luxury product market in the world

luxury product sales in china us europe japan 2017 2024

A similar report by McKinsey points to the same direction. In 2020, China luxury good spending will be one third of the whole world.

luxury good sales in china vs worldwide 2020 - 2025

2. Affluent consumers in China are relatively younger than those in the US or Japan

According to BCG and eMarketer, 80% of affluent consumers in China are under 45.

3. Personal care and beauty products and Jewelry lead the growth in sales

luxury good sales by product category in china 2018

4. Chinese affluent consumers increasingly buy luxury goods at home vs overseas

Report from BCG and Altagamma indicates this trend below

luxury items being bought in china from chinese affluent consumers

This graph will tell you a bit more about the context behind this shift

where chinese affluent consumers buy luxury items from 2013 - 2016

Daigou is an overseas surrogate shopper who buys goods overseas for mainland Chinese customers and send them back.

5. More than 90% of luxury good sales happens offline

luxury good sales in china digital vs offline

6. More than 60% of luxury good media ad spend is on digital channel

digital ad spend share for luxury good ad spend in china v2
luxury ad spend in china by channel 2019

7. Digital channels are heavily used to research for luxury goods in China

8. Key opinion leaders (KOL) have as much impact on opinion and decision of affluent consumers in China as brand websites or other channels

key channels impacting opinion and decision of affluent consumers in china 2018

Cheers,

Chandler

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