China Chic:
The Emergence of Chinese Luxury Brands
February 2022
1CONTENT OUTLINE
1. How Chinese consumers define luxury in China 3
2. Chinese luxury brands are gaining momentum 7
3. The impact of Guochao on China’s luxury industry 14
4. Hypotheses for the emergence of Chinese luxury 20
brands
5. About us42
2 1.
How Chinese consumers
define luxury in ChinaToday in China, luxury means self-expression, self-actualization and community-building
Younger Millennials and Gen Z are changing the definition of luxury in China, making luxury goods shift from being signals of social
status to becoming instruments of self-actualization, self-expression and community-building.
Chinese Gen Z’s main reasons for purchasing luxury
Elder generations used to consider luxury as mainly a symbol of
high social status and opulence. However, as younger generationsSelf-fulfillment
impose themselves as the main drivers of luxury consumption, the 68% purposeEsteem-related reasons
definition of luxury in China is gradually evolving.61%
45%
24%
Top 3 defining features of luxury goods by age group 20%
6%
Baby Boomers Millennials Gen-Z
1. Price1. Price1. PriceReward for Pursuit of Uplift of Identity Gift Signaling
2. Signaling a high- 2. Profound history 2. Unique design myself fashion confidence statement social status
end lifestyle 3. Unique designaestheticsSource: Tmall (2020), N= 3,000
3. Profound history aesthetics3. Profound history
Today, young Chinese consumers regard luxury as a means to
Source: Mazars (2019), N=3,235
reward and express themselves in a more elevated and upscale
way. Even though luxury goods are likely to be still important in
signaling a high-end lifestyle, Gen Z are more eager to share, talk
about and discover their luxury experience, thereby building a
community of kindred spirits.
(c) 2022 DAXUE CONSULTING 4
ALL RIGHTS INCLUDED In the eyes of modern Chinese, luxury has become an experience, not a product
As luxury transforms into a method of self-care, the key elements of China’s new concept of luxury become experience, innovation,
customization and cultural sensitivity. Chinese consumers want more than just a product, they want an immersive luxury experience.
What additional service would you like to have in
According to BCG, experiential luxury
physical stores?
grew by 9% in China in 2017, imposing
itself as one of the main drivers of growth
of the luxury industry. Customization20%
个性化定制
Nowadays young Chinese consumers Styling service18%
want to pamper themselves through 造型服务
luxury experiences.
Coffee/snacks 12%
咖啡/轻食
Art exhibition 11%
艺术品展示
Young consumers crave a digital experience
Smart experience 10%
智能/科技体验
New technologies and the integration of
Source: Luxe.co x Peacebird, N= 3,000
offline and online elements have become key
features of China’s new concept of luxury: For Millennial and Gen Z consumers, customization is not just a nice option, but a
young Chinese consumers do not want just to must-have, since customization allows them to express cultural identity.
enjoy luxury experiences, they want to be able Therefore, it is an important driver of purchase.
to share them on social media.
(c) 2022 DAXUE CONSULTING 5
ALL RIGHTS INCLUDED