China's millennials want luxury brands which speak for themselves
Today's younger generation in China tends to choose online channels when it comes to shopping, even for luxury brands with relatively high prices.
Some 91% of luxury brands in China had launched online sales by June 2016, more than double the 43% selling online 12 months earlier in 2015, according to the 'Luxury China' report released by L2, a Chinese digital marketing company, this year.
According to the additional 2017 Chinese Luxury E-Commerce Whitebook report from Secoo, Asia's largest high-end e-commerce platform, and Tencent, the largest data company in China, Chinese millennials and Generation Z are set to become the dominant driver of luxury consumption over the next decade.
The average age of the online shopper of luxury in China is now 25, 15 years younger than the average age of European luxury consumers, and 20 years younger than those in the US. These young consumers are stepping up their buying of minority brands – as opposed to famous and high-profile logos – as they seek more personalized and less mainstream experiences. For example, as streetwear trend has gradually become more mainstream this has led to more young people embracing and becoming fans of brands, such as Supreme and Vetements.
This finding was echoed by Deloitte in one of its recent global luxury consumption surveys about millennium-generation consumers: “The consumers are no longer too loyal to one specific brand. They want luxury brands which speak for themselves. They are more willing to pay attention to trendy brands with stories.”
Chinese luxury e-tail giants have recognized this trend too. Recently, Secoo announced partnerships with a number of popular and niche brands, including Mr&Mrs Italy, Corto Moltedo and Maison Kistune.
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