Age of Ambition: Chasing Fortune, Truth, and Faith in The New China

Introduction

Chinese shoppers have been dominating the luxury goods industry lately. These luxuries were previously exclusive to China’s socialites, but are now a commodity donned by those of all social classes. It was not always like this though; two years ago, the purchases of luxury goods dropped by 2% after Chinese consumers became weary after government crackdowns and new regulations. As the Chinese economy has risen, so has the amount of luxury goods being purchased. According to The Wall Street Journal, consumers were slightly older and less attuned to fashion trends. They also did not have as much disposable income to spend on luxury goods.

Resurgence in Luxury Goods

As of today, Chinese consumers have certainly resurged in purchasing luxury items, so much that China has risen to the top, taking place as the world’s largest consumer. According to The Wall Street Journal, “Analysts said the pickup in spending could even accelerate this year” (The Wall Street Journal, 2023). Technology also plays a part in why luxury goods have been doing so well in terms of sales. With an increase of technology in Chinese consumers, more people spend time looking at the profiles and pictures of those in their luxurious lives. This creates a want for luxury goods and creates sales, perpetuating a pricey cycle. Moreover, the rise of social media platforms like WeChat and Weibo has significantly contributed to this phenomenon, as they allow users to share and showcase their luxury experiences, further fueling the desire for such goods.

Factors Contributing to the Trend

There are a number of reasons as to why Chinese luxury consumers are resurging. For one, many Chinese millennials have an increased amount of disposable income because they were born after China’s one-child policy ended in the late seventies. In my local shopping center, managers are requiring that prospective employees are able to speak Mandarin. This is because of the influx of Chinese immigrants in Nassau County. “Nassau attracted 40,000 more Asians between 2000 and 2010, a 62 percent jump” (U.S. Census Bureau, 2011). In order to attract Chinese consumers, luxury-goods brands need to have employees that speak Asian languages, like Mandarin and other major category dialects. As far as products, luxury brands should focus on what products currently do well with the target market. After, their marketing teams can cater to designers and continue to create products that will appeal to Chinese consumers. In terms of retail strategy, brands can make shopping a more seamless experience by participating in omnichannel retailing.

Technological Influence and Brand Strategy

An ever-increasing presence of technology will help drive sales by making their products available on multiple platforms. Brands can assure consumers that no matter when or where, their products are available. In addition, 24/7 access to a concierge would serve luxury brand consumers well. With current fashion trends in mind, Chinese consumers purchase a lot of stylish products involving logos. This trend is known as logomania. Today, Chinese millennials can be seen in labels like Off-White, Supreme, Gucci, and Fendi. These brands are the top sellers in the high-end fashion industry and their logos can be seen almost everywhere. While these trendy logos do well with Chinese consumers, timeless styles do just as well. Many of these consumers indulge in Parisian products like Louis Vuitton, Celine, and Hermès, who has seen the biggest increase in sales in recorded history, thanks to Chinese consumers. This dual preference for both trendy and timeless styles demonstrates the complexity and diversity of consumer preferences within this market.

Conclusion

In conclusion, the Chinese luxury market continues to expand, driven by a combination of increased disposable income, cultural shifts, and technological advancements. Brands that can effectively cater to the unique preferences of Chinese consumers, while also leveraging modern technology and retail strategies, are likely to see continued success. As the market evolves, staying attuned to these changes will be crucial for maintaining a competitive edge in the luxury goods industry.

References:

• The Wall Street Journal. (2023). Analysts predict rise in luxury spending. The Wall Street Journal.
• U.S. Census Bureau. (2011). Asian population in Nassau County. U.S. Census Bureau.