Report: 88% of China’s Luxury Growth Driven By New Consumers
China’s luxury fashion market in 2021 is being propelled by a cohort of 1.5 million consumers who each spend more than 40,000 yuan ($6,255) per year on fashion-related luxury products. As a group, they are responsible for 81 percent of the sector’s total sales over the past 12 months, according to a new research report from consulting firm, Oliver Wyman. The report, compiled in October after surveying 3,000 mainland luxury fashion consumers, in addition to completing supplementary interviews with luxury brand sales associates working closely with them, also found that 50 percent of this group bought luxury fashion items (including ready-to-wear, footwear, leather goods and accessories) for the first time between October 2020 and September 2021. According to “The New Faces of Chinese Luxury Shoppers” report, it’s this surge in first-time luxury fashion consumers that will be responsible for 88 percent of China’s luxury fashion market growth in 2021. “A lot of consumers who might have spent [money] on travelling before other things, especially younger Gen-Z consumers, have instead entered the luxury category,” said Imke Wouters, retail and consumer goods partner at Oliver Wyman, adding that 40 percent of the first-time luxury consumers surveyed were under 25-years-old. These younger Chinese consumers differ from their predecessors in terms of how they first purchase luxury. Whereas a decade ago, Oliver Wyman retail and consumer goods principle, Katie Sham, says “99 percent” of Chinese luxury consumers would have first purchased leather goods, today’s Gen-Z consumers are more likely to first buy a ready-to-wear item. “We’re not talking about a very expensive jacket from Chanel or evening gown from Dior, we are talking about a signature T-shirt,” Sham explained, or other items in a price point below 10,000 yuan ($1,564). Chanel and Dior were the most desired brands among Gen-Z overall (cited by 45 percent and 38 percent of respondents respectively), though Chinese designer brands were also in the mix, and 11 percent of respondents named local brand Shushu/Tong as a desired option. Read More at https://www.businessoffashion.com/news/china/report-88-of-chinas-luxury-fashion-growth-driven-by-new-consumers?