Luxury Consumers In Second Tier Cities In China

Although luxury consumption in China has only developed in less than 20 years, it has developed rapidly. The world's second largest consumer of luxury goods 。 The number of affluent people in China's three cities (Beijing, Shanghai and Guangzhou) accounts for 48% of the total number of affluent people in China, and the number of luxury goods outlets per capita has also been equal to that of New York and Chicago. The next wave of growth in luxury brands will appear in second line cities in China.

Gao Minqing, President of Shang Yang media China, said: "the major luxury brands have been aiming at the second tier city market and competing for the opening of brand boutiques. Therefore, the demand for luxury consumers in second tier cities is imminent." In the research data carried out by Shang Yang, we can find the following 7 points:

Because X is suitable

The traditional view is that Chinese luxury consumers are followers of big LOGO, but this survey negates this assertion. We find that many of them are no longer so blind. They are no longer limited to luxury goods. Their choice is behind the choice. Identity, social circle and age are the key factors affecting their consumption decisions.

The "circle" consumption under Confucianism

I always talk about the increasing personality of the Chinese, but the baptism of Confucianism for thousands of years has made the idea of "Baotuan" deep-rooted, and the Chinese people's inherent belief that what we are doing is always wrong. Therefore, "circle" consumption is particularly evident in luxury consumption. It is often a person who leads the consumption change of the whole group, because the Chinese do not like to start out, but do not want to lag behind them. In addition, because luxury consumption has only risen rapidly in China in recent years, consumers are not familiar with all kinds of related information, which results in their rapid learning through imitation.

　　 Popularization of luxury goods

Back LV crowded bus scenes in China's second tier cities have long been commonplace, students and white-collar workers have joined the ranks of luxury consumption. People's acceptance and preference for luxury goods are rising. The popularity of luxury goods seems to be at hand. In our research, we find that consumers are getting younger and younger in luxury goods, and they often get their first luxury when they are in University.

Increasing emphasis on service and brand experience

Chinese consumers are no longer satisfied with the products themselves, but start to pursue their additional non-material experience enjoyment. An interviewee described to us the quality service provided by salesmen in luxury boutiques: "neither do you become masters or grandchildren." It can be seen that the services involved in the purchase and use of products are getting more and more attention. Meanwhile, the data of China luxury forecasting agency in 2010 also show that 45% of the entity store consumers think that the attitude of salesmen has a great impact on their consumption decisions.

Diversification of purchasing channels

Relative to the domestic low price, wider choice, better service and unquestionable authenticity, overseas shopping has gained the favor of Chinese consumers at the very beginning. There are also some consumers who do not have the conditions to go abroad to buy. This is not only a matter of money, but also a restriction of time, family and other factors. But in the era of Web2.0, they have a new shopping channel: online shopping. One of our respondents bought a 80 thousand yuan for her husband through online shopping. Vacheron Constantin Watch 。

Individualization

As Chinese luxury consumers gradually improve their taste, they begin to wish to display their unique personality through luxury goods. Even those who consume luxury goods for social needs, they will reveal their desire to embody their individuality. In addition, with the rapid development of the economy and people's growing awareness of the luxury goods industry, the pursuit of Chinese individuality will inevitably become a major factor affecting its decision-making. {page_break}

Seeking the combination of brand story and oneself

Through this survey, we find that brand image, or image transmitted by brand, is very important to consumers, which is the carrier of their own stories. Some consumers regard this combination as the basis for choosing brands, and only those brands that match their experiences, dreams and temperament can get their favor.

Lu Weiyu, director of media planning and consumer insight in China media, said: "China's affluent people are different from other countries in the world. They are on average 20 years younger than the affluent Japanese and American counterparts. More than half of the existing Chinese luxury consumers have just started to get involved in this field since 2005, which means they are still in the initial stage of luxury consumption. This situation is a double-edged sword for luxury brands. On the one hand, some of the marketing methods that marketers are familiar with do not apply in the Chinese market; on the other hand, for experienced marketers, it also represents more opportunities to influence Chinese consumers' brand preference and purchase behavior.