The dawn of a new era for Chinese luxury brands: 6 hypotheses on the future of luxury in China
In 2023, China’s luxury market made a significant rebound, surging by 12% year-on-year after a pandemic-induced dip the previous year, Chinese luxury market is on track to become the world’s largest, with Chinese luxury consumption estimated to account for 35%-40% of the global total by 2030. Alongside the development of the Chinese economy and its […]
Navigating China’s Daigou landscape: resilience, challenges, and novel avenues in post-pandemic luxury markets
The Daigou (代购) industry, referring to individuals or agents who purchase and import goods from overseas for resale in the Chinese market, faced substantial challenges amid the pandemic. Tightened regulations and pandemic-related disruptions led to a significant reduction in the industry. Despite some recovery, the industry is unlikely to return to its previous size. This […]
China’s luxury e-commerce market: Gen-Z and platforms revolutionizing luxury shopping
With more than 580 million active users, China has become the world’s largest e-commerce market, –driven by its sustainable growth and resilience. Despite the significant impact of the Covid-19 pandemic on various sectors, the market for small luxury goods in China proved to be relatively less affected. The luxury e-commerce industry has experienced rapid development […]
CHANEL Mission 1.5°: What Chinese consumers think about Chanel’s sustainability strategy
Chanel, one of the most famous fashion houses in the world, entered the Chinese market in 1999. Following the country’s economic growth, the firm also expanded and gained more and more popularity. By 2021, Chanel was the favorite brand of Chinese customers, according to Agility China Luxury Brand Affinity Rankings. In the Chinese market, Chanel […]
China’s luxury leather goods market remains resilient despite the pandemic
Chinese consumers were reported to spend 741 billion RMB on luxury goods in 2021, recording an increase of 36% compared to the previous year. Despite the impact of Covid-19, China’s luxury market has witnessed continuous growth. According to Bain & Company, China’s luxury market accounted for 21% of the global market in 2021, and it […]
Unpacking the challenges of the secondhand clothing market in China
In China, an estimated 26 million tons of clothes are thrown away every year, whereas less than 1% of that amount is reused or recycled. Due to association with poverty and the concept of mianzi (面子), many Chinese people are unwilling to buy and wear secondhand clothing, leading to mass production and waste accumulation in […]
China Chic: The Emergence of Chinese luxury brands
Nowadays Chinese consumers are a major driver of growth for the global luxury industry and their importance is bound to increase in the years to come. Indeed, mainland China is expected to become the world’s largest luxury goods market by 2025, thereby surpassing the regional share of the Americas and Europe. Covid-19 travel restrictions induced […]
China’s ‘Common Prosperity’ initiative and its potential economic impacts explained
In early 2021, Chinese President Xi Jinping made a speech emphasizing the importance of ‘Common Prosperity’, setting this concept as a tone in policy making for the next few years. As a policy-guided and increasingly modernized country, China’s ‘Common Prosperity’ campaign gathers momentum and impacts all aspects of society almost instantly. What’s China’s ‘Common Prosperity’ […]
Five steps to future-proofing for luxury brands in China
China’s luxury market accounted for 20% of the global luxury market in 2020 and it is expected to become the largest luxury market by 2025, thereby surpassing the regional share of the Americas and Europe. According to the report jointly released by Ruder Finn & Consumer Search Group, consumer confidence has been restored as 41% […]
Keeping up with the shifting Chinese luxury consumer demographics: What to expect when luxury embarks to lower-tier cities
The Chinese luxury market is a major source of revenue for many global brands and will become the largest in the world. However, Chinese luxury consumer demographics is changing. While it remains obvious for luxury brands to primarily target tier 1 cities in China first, there is much opportunity for growth and expansion in lower […]
More powerful than “I love you”: Gift giving culture among Chinese couples
Across many cultures, gift giving has stuck out as an important way to express love and commitment in a relationship. China’s gift giving culture expands far beyond romantic relationships to include family, friends and even business relationships, but gift giving in romantic relationships remains tradition during China’s six valentine’s days. Although feminism is gaining momentum […]
Personalization and customization in China: Is it worth the effort and how to create a campaign
China is on the path to becoming the largest luxury market in the world. According to a McKinsey report, China will contribute 40% of the world’s consumption of luxury goods by 2025, and it has already become the biggest market for many luxury brands. At the same time, foreign apparel brands have been expanding rapidly […]