Ruder Finn and Ipsos Group Release China Luxury Forecast
In a release from Ruder Finn and Ipsos Group, the China Luxury Forecast analyzes luxury purchasing trends in China. According to this latest report, consumers in mainland China and Hong Kong will actually level out their consumption of luxury goods over the course of this next year. Seeking more unique products, looking past brands, the expectations of these consumers is now focused on a higher level of professional support and a consumer experience. The report also suggests these trends mean more eCommerce in the region as well.
The findings demonstrate that mainland Chinese consumers are spending more on fashion and beauty, and predicts consumption of items like luxury watches, shoes, fine wine, and so on, will remain constant. Essentially, the demand for luxury goods in this region is constant, even growing.
Also included in the report is the trend for China consumers to shop overseas for purchases where service quality in China are not up to par. Chinese consumers shop watches and wine from Europe, beauty and jewelry from Hong Kong, and they found service at home for luxury items poor. Elan Shou at right), managing director and senior vice president of Ruder Finn China, commented:
“The change we see here is not surprising. As the market matures, Chinese consumers are becoming more and more knowledgeable about the different luxury categories and offerings, and are looking for experiences that truly reflect their discerning expectations. For now, they are finding these luxurious shopping experiences overseas.”
Building brand trust through regional service support was discussed, as well as mobile marketing, brand education, and other key data and improvement factors. The list below shows some highlights of the report.
- Consumer tastes are becoming more sophisticated, as consumers care less about the brand name and more about the uniqueness of the product.
- Customer service is also increasingly important to Chinese consumers.
- 92 percent of consumers from China are dissatisfied with luxury brands’ services at home, creating a shift in purchases overseas.
- 36 percent of mainland Chinese and 34 percent of Hong Kong respondents prefer to shop for luxury online – a 22 percent and 24 percent increase respectively, compared to 2012.
- Consumers in mainland China are connecting with brands on mobile platforms, as 80 percent are willing to receive push notifications from brands. Hong Kong consumers in are more selective, as 43 percent are willing to receive push notifications only from brands to which they are loyal.
- Mainland Chinese consumers are willing to spend more money on fashion and beauty, a trend that will likely increase in 2014 and aid in narrowing the purchasing power gap with Hong Kong.