Why luxury must cater to young Chinese

McKinsey's "China Luxury Report 2019 - How young Chinese consumers are reshaping global luxury" is the latest in line, focusing on the wants and wishes of the country's thirty-somethings The McKinsey report reveals that by 2025, Chinese consumers will make up 40% of the global personal luxury goods market and deliver 65% of additional spending In value terms this means that in six years' time, Chinese shoppers will be spending EUR 160 billion on luxury compared with EUR 102 billion today.

Until now, the market has been driven by the generation born in the 1980s, whose 10.2 million luxury consumers were the main beneficiaries of China's rise to economic superpower For these young Chinese consumers, many of whom are new to luxury, prestige purchases are both social capital and a way of distinguishing themselves from others; a means of "Feeling different rather than fit in." Unsurprisingly, brands hold sway over these consumers, and foreign brands in particular exert huge appeal According to McKinsey, offline is expected to remain the preferred luxury sales channel, with stores still accounting for 88% of Chinese luxury spending in 2025 - hence the importance of sales assistants who are expected to make recommendations based on their understanding of customers' personality and preferences, and keep in touch through social media or by email.

For them to win the attention of China's young luxury consumers with their shifting zeitgeist, more driven by aspiration than heritage, they must develop what McKinsey calls an "Always on approach", built around a rapid cycle of product launches, modernised stories, collaborations with influencers, and engagement through online and offline touchpoints. . Source