Drafting the new Chinese luxury consumer
by Miriam Fritz, Berners Consulting Stuttgart
Chinese luxury consumers are clearly on the rise. A recent study by Roland Berger Consultants estimates a CAGR of 25% between 2010 and 2015 and expects that Chinese consumers to account for 40% of the global new luxury market consumption by 2015. But what is their purchase decision based upon? Brand awareness is certainly among the most decisive factors, and its significance is increasing. The most important source for brand awareness, however, is not advertisement or commercials, but rather social networks and friends. This, on one hand, shows the continuous importance to align decision-making with the social peer group one identifies with. On the other hand, luxury consumption behavior is projected to become more individualistic and focused on unique brands.
Apart from increasing brand awareness, another noticeable feature of Chinese luxury consumers is their age, distinguishing them from the average luxury buyers in developed countries. As an example, Chinese Dollar millionaires are 39 years old on average. Even Chinese “Super Rich” are only 41 years on average. These are also called the “Wealthy Second Generation” of Chinese entrepreneurs and Chinese private enterprises, who e.g. inherited or will inherit a business led, owned and often founded by their parents.
Source: Roland Berger
For further information, please contact info@berners-consulting.net.