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1. Agility Research Presents The
US vs. China Affluent Consumer
Does the way the affluent Chinese consumer think about and buy luxury products truly differ from their US counterparts? – We at Agility Research & Strategy take a deeper look into the psyche and luxury brand consumption patterns of the top 25% (based on household income) of the two populations in both markets.
There has been much focus on the Chinese luxury market in recent years; however, the US is no less important, with multiple news sources, such as the Wall Street Journal and Reuters indicating that luxury consumption there is picking up again.
All findings presented are extracted from the Agility Affluent Insights study conducted by Agility Research & Strategy, which is administered online among 1500 (equally distributed) affluent respondents in 5 countries - China, Hong Kong, Singapore, Indonesia and the US.
The World’s Leading Research and
Intelligence Platform on Affluent Consumers
"Girl" by Francesco is licensed under CC BY 2.0 / "Nut 3" by Jonathan Kos-Read is licensed under CC BY-ND 2.0

2. 2014, Issue 11
Generally, affluent consumers in the US are more engaged with brands in their daily lives than their Chinese counterparts. In fact, it is hard to imagine a product or a service that does not have a carefully designed brand on it. In this hugely competitive environment it is not surprising that US consumers do not view luxury as much in terms of individual brands, but rather think about luxury being expensive, high price purchases in general. In China, the affluent population tends to be younger and more eager to show off their status in society by flaunting fashion items from the top European fashion houses. Overall, for the affluent Chinese, quality is actually seen as defining luxury more than the price of purchase.
What does luxury mean in the US?
For the affluent US consumers, luxury is expected to be ‘expensive’, but also high quality. Some brands associated with a high price, like cars (e.g., BMW, Mercedes Benz, Cadillac), come up when asked ‘what comes to mind when someone says luxury?’ However, associations are mostly related to expensive categories, e.g., jewellery, a house, a vacation, or car (see word cloud below). Besides quality, many expect comfort and pampering from luxury products and services.
What does luxury mean in China?
In contrast to the US, in today’s China, luxury is best defined by quality. Luxury is expressed in one’s style and taste in high-end branded products that work as status symbols. Many individual fashion brands, such as Chanel, LV, and Hermes get mentioned, but similar to the US, some car brands surface, such as, Ferrari and BMW. Being expensive alone does not define luxury as it does in the US.
The World’s Leading Research and
Intelligence Platform on Affluent Consumers

3. 2014, Issue 11
What drives luxury product purchases in each market?
Something that we already referred to is that affluent consumers in China are more likely than in the US to go for luxury brands that are recognizable. 56% of Chinese consumers say that they agree (completely or somewhat) that it is important to them that people recognize the brand they are using.
Luxury brands in both markets are purchased because they are of higher quality. However, quality is a notably bigger motivator for purchasing luxury in China than in the US. In fact, only 4% in China disagree with the statement that they buy luxury brands because of the higher quality that they provide.
23%
22%
33%
21%
26%
19%
12%
17%
5%
22%
China
US
It is important to me that people recognize the brand I am using
Completely Agree
Somewhat Agree
Neutral
Somewhat Disagree
Do not agree at all
49%
39%
37%
33%
10%
12%
2%
4%
1%
11%
China
US
I buy luxury brands because of the higher quality they provide
Completely Agree
Somewhat Agree
Neutral
Somewhat Disagree
Do not agree at all
The World’s Leading Research and
Intelligence Platform on Affluent Consumers

4. 2014, Issue 11
There is an even bigger discrepancy between the markets in terms of exclusivity driving luxury brand purchasing. In China 86% of affluent consumers agree that they buy luxury brands because of their exclusivity, while only 51% say the same in the US.
Price on the other hand is a much bigger consideration in the US that in China. Almost 3 out of 4 US affluent consumers say that it is important for them to get the best possible price when buying luxury brands. This compares to less than 1 in 2 in China saying the same.
Despite their interest in getting the best possible bargain for their luxury purchase, US affluent consumers somewhat lag behind their Chinese counterparts in terms of purchasing luxury products online, with only 50% agreeing that they purchase luxury products online, versus 59% in China.
44%
25%
42%
26%
10%
19%
3%
12%
2%
18%
China
US
I buy luxury brands because of their exclusivity
Completely Agree
Somewhat Agree
Neutral
Somewhat Disagree
Do not agree at all
15%
47%
34%
26%
33%
13%
15%
5%
3%
10%
China
US
It is important to get the best possible price when buying luxury brands
Completely Agree
Somewhat Agree
Neutral
Somewhat Disagree
Do not agree at all
19%
24%
40%
26%
27%
19%
11%
13%
4%
18%
China
US
I purchase luxury products online
Completely Agree
Somewhat Agree
Neutral
Somewhat Disagree
Do not agree at all
The World’s Leading Research and
Intelligence Platform on Affluent Consumers

5. 2014, Issue 11
Chinese affluent consumers have been much faster to adopt the internet as a channel for purchasing, and over 80% agree when asked if they research luxury products online. This compares to only 65% in the US.
What brands do affluent consumer own and plan to purchase in each market?
Top fashion brands owned by the Chinese affluent are more upscale than those in the US and include Chanel, Gucci, and Burberry, while in the US it is more common to own more affordable luxury brands, such as, Coach, Ralph Lauren, and Calvin Klein.
The top watch & jewellery brands that Chinese and US affluent consumers own are both upscale, with more local support shown by US affluent consumers in owning pieces from Tiffany & Co. and Guess.
39%
33%
42%
32%
15%
12%
3%
9%
2%
14%
China
US
I research luxury products online
Completely Agree
Somewhat Agree
Neutral
Somewhat Disagree
Do not agree at all
China (n=303)
USA (n=302)
Top 1
Chanel
Coach
Top 2
Gucci
Ralph Lauren
Top 3
Burberry
Calvin Klein
China (n=303)
USA (n=302)
Top 1
Dior
Tiffany & Co.
Top 2
Gucci
Guess
Top 3
Chanel
Gucci
The World’s Leading Research and
Intelligence Platform on Affluent Consumers

6. 2014, Issue 11
When it comes to top cosmetics brands on the shopping list of affluent consumers, French names are in the top three. However, you also see a lot of regional influence - in China you see Japanese brands, Shiseido and SK-II also on the list, while in the US, local brands Olay and Clinique top the list.
It is key to understand how luxury consumers in one market differ from their counterparts in other countries. In order to maximize the return on investment from marketing efforts, you need a research partner who has its finger on the pulse of the affluent consumer across the globe. One size does not fit all.
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China (n=303)
USA (n=302)
Top 1
Dior
Olay
Top 2
Shiseido
Clinique
Top 3
SKII
L'Oreal
The World’s Leading Research and
Intelligence Platform on Affluent Consumers