Chinese Luxury Consumers
In spite of the slowing growth in the Chinese economy, the huge and classy group of luxury shoppers in China is becoming more global and more demanding. According to McKinsey and Company, to keep these consumers interested in their brands, marketers will need to take a new approach.
Evolving Chinese consumers
For more than eight years, McKinsey has been monitoring Chinese luxury consumers and their increasing influence on the global luxury-goods market. Their latest research focused on understanding the fundamental attitudes and behaviors of Chinese luxury consumers.
A trillion renminbi* opportunity
This Herman Trend Alert covers a few of their most recent findings. We look at how their buying behaviors have evolved, and their shopping patterns. Finally, we will look at some of what the luxury players will need to do to capitalize on this market.
A huge and growing luxury market
By 2018, the number of Chinese millionaires is expected to surpass that of any other nation, and by 2021, China is expected to have more affluent households than any other country on the planet. Moreover, their annual spending, represents almost a third of the entire global luxury market. In the eight years following the Beijing Olympics, McKinsey estimates that more than 75 percent of the total growth in global luxury spending, could be attributed to purchases made by Chinese consumers.
Two recent shifts in Chinese luxury
Because Chinese consumers are no longer making their first purchases, luxury marketers need to invest more in building loyalty among these existing customers, rather than recruiting new ones---a move from customer recruitment to customer retention. Second, McKinsey has observed an increasing importance of super wealthy Chinese consumers, due to the fact that they represent more of the market.
What Chinese consumers are looking for
Wealthy Chinese consumers are looking for global product and price consistency, a high level of customer service, including being recognized as return customers, and "locally tailored products that [can] serve as luxury souvenirs".
Looking forward: even more spending coming
Moreover, unlike average Chinese consumers, wealthy Chinese consumers expect to spend more in 2017. By 2025, McKinsey forecasts the value of the global luxury-goods market to climb to RMB 2.7 trillion or USD$410 billion. As they have in the past, Chinese consumers will account for a majority of this growth, and by 2025 will account for 44 percent of the total global market. Luxury brands that ignore the luxury Chinese do so at their own peril.
* The renminbi is the monetary currency of China.
To read this entire very detailed report, visit https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/chinese-luxury-consumers-more-global-more-demanding-still-spending
?********
The Herman Group is a firm of Strategic Business Futurists concentrating on workforce and workplace issues. We forecast the future and advise clients regarding relevant trends and how those trends may affect their lives. Applying our expertise as Certified Management Consultants, we advise corporate leaders regarding employee retention and organizational development to help them build workforce stability. We help organizations become Employers of Choice®. We also work with Employer of Choice, Inc. to formally recognize employers that meet the stringent standards dictated by the labor marketplace. As authors of management books and as active professional speakers, we inform and inspire people to make a positive difference in the world of work.
You did really get the ball rolling with our retention presentation, overall we have seen a move in the right direction with our turnover.
In practice since 1980, we have served a wide variety of clients throughout the United States and in other countries. Our global affiliates assist us in sharing our expertise and advice with clients internationally. Our team of professional consultants and trainers is supported by an administrative staff that gets things done. We also have consultants certified to deliver our programs in your local area.
Delivering to both small and large groups across 100 industries, The Herman Group has provided over 2,500 educational and informative keynote speeches and training seminars worldwide.
Based in Greensboro, North Carolina, we travel extensively to meet the needs of our clients. We can always be reached through the support team in our office at (800) 227-3566. Overseas callers may reach us through 336-210-3547.
Should you have any questions after touring our website, please call or e-mail us at info@hermangroup.com.
Get started now on improving the stability and performance of your workforce and increase your chances for success in the future.