More Money: Chinese People Actually Bought The Luxury Of Global 1/3.

In March 19th, the China luxury market research published by Bain showed that China's luxury goods market increased by 20% in 2018 and 33% of the global market share of luxury goods.

The overall prosperity of the market, the size of the cake separated by the brands is uneven, the growth rate of the leading brands is higher than 25%, and the slower growth rate is less than 10%.

Among them, the more successful brands are good at using younger and more casual products to attract the millennial generation. They will also use WeChat and other social platforms to identify targeted customers and sell them online and offline. In addition, they will work harder to speed up the renewal of new and shop windows and actively cater for young people's pursuit of trendy things.

"The purchase price of the millennial generation is not necessarily high, but it is frequent. The new window helps to get them into the shop."

Bain global partners Bruno (Bruno Lannes) said.

Because women spend more money on luxuries than men, this has led to huge differences in the performance of different categories. For example, traditional women products such as cosmetics have grown by more than 25%, while male consumer dominated watches have grown by less than 10%.

China's luxury consumption has achieved 20% growth in two consecutive times, and Bruno attributed the prosperity to the four growth engines: the millennial generation, consumption reflux, digital development and the fast growing middle class.

Among them, the 23-38 year old Chinese millennial generation has a housing ownership rate of 70%, which is two times that of the United States.

It is worth mentioning that young consumers are scramble for innovation such as cross border cooperation between high-class fashion and sportswear, which makes luxury brands increasingly produce sports and leisure products. "In Europe, people have the impression of luxury goods, represent their identities, even consider inheriting, speaking of buying Gucci sports shoes, will you feel serious inside?" Bruno said, "while Chinese consumers are young, they are more open to brands and products and are willing to accept new things."

At the same time, more and more consumers choose to buy luxury goods in the mainland instead of going to cities such as Hongkong, Singapore, New York and London for cheaper prices. The Chinese government has cut tariffs, strengthened the regulation of the gray market, and adjusted the price gap between luxury brands at home and abroad, which has also accelerated the trend of reflux.

According to reports, the proportion of Chinese luxury consumers in the mainland has risen to 27% in 2018, and the proportion is expected to reach 50% in 2025.

Digital development has boosted the purchase of luxury goods, including e-commerce and consumer interaction based on digital platforms.

In 2018, online sales of luxury goods increased by 27%, and digital marketing accounted for more than 50% of the marketing budget of luxury brands in China.

Since 2015, the number of digital marketing budgets for the top 40 luxury brands has almost doubled, of which 40%-70% is used for WeChat.

In addition, per capita income is still rising. In 2027, the middle class in China will account for 65% of the total family income.

Bruno personally predicted that China's luxury market growth in 2019 10% to 15%, will continue to maintain a strong driving force.