Millennials spend a lot of time online versus other age groups. Being exposed to fashions and trends from all over the world has led to greater sophistication and independence when purchasing luxury products. They overwhelming choose products for themselves, rather than choose based on the opinions of friends or the media.
Chinese Millennials Spend the Most Time on Digital Per Week
Millennials spend an average of 21 hours online on the internet and social media than all other age groups combined. Digital is the best way to connect with a Chinese Millennial audience.
Chinese Millennials Get Luxury Info from Digital
Millennials tend to get their luxury information from digital channels such as social media and online websites and news sources.
When Purchasing Luxury Goods, Only Millennial Opinions Matter
Millennials are less likely to follow the opinion of others, and rather form their own opinion of what to buy and what to wear. This is a continuation of a trend of purchase sophistication.
Tier-1 cities like Shanghai Beijing and Guangzhou on average have citizens with greater than average wealth vs. the rest of China. However the most wealthy Chinese tend to live in Tier-2 cities, and growth of netizens able to afford luxury products is higher in Tier-2 and below cities as well. Since many brands do not have physical retail presence in these cities, it makes adoption of ecommerce and scalable education through digital platforms critical to sales growth.
Growth of Luxury Consumers Mostly Outside Tier-1
The vast majority of growth for consumers is outside Tier-1 cities like Shanghai, Beijing, Guangzhou and Shenzhen.
Growth in Luxury Search Terms Highest in 3rd Tier Cities
While total volume of luxury goods sales in 1st tier cities is higher, the growth in luxury demand is happening in 2nd and 3rd tier cities. Reaching these cities via ecommerce is key.
Luxury Consumers Prefer In-Store Purchase
Customers still prefer to purchase products from luxury stores. Luxury brands should consider a “trunk show” solution to regions that they do now have a physical retail presence.