Luxury retail in China: top trends and challenges that you need to know
- Younger Millennials and Gen Z are driving luxury consumption growth in China, soon to be joined by Gen Alpha
- Think local through partnerships with Chinese social platforms and cultural awareness
- Live streaming continues to be an innovative sales channel for luxury retail
China is a force to be reckoned with in the luxury retail market, thanks to its vast consumer base and rising high-networth population.
Consumer spending on luxury goods in this market will continue to rise, with an annual growth of 4.15% from 2023 to 2027. Chinese consumers will likely make up 40 percent of all luxury consumers by the end of this decade, according to a study by Bain & Company.
In a recent report by the global consultancy, luxury sales in China skewed towards Very Important Clients (VIC) in 2022. A number of Chinese luxury brands even recorded higher VIC sales than the global average of 40%.
Read further as David Liu, Cegid Practice Manager at VISEO APJ and Chennan Zhang, Head of Business Development APAC at Cegid explore the luxury retail sector in China and the key trends and challenges emerging from this space.