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8 Trends to Watch in China's Luxury Sector

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8 Trends to Watch in China's Luxury Sector

  1. 1. OBSERVERSource:    KPMG  “Luxury  Experiences  in  China”  Study   May  2011 www.thechinaobserver.com  |  Data  &  Facts
  2. 2. OBSERVER China’s  luxury  industry  is  developing  at  a   rapid  pace.  China  is  the  world’s  second   largest  luxury  consumer  market  behind   Japan.  The  following  presentation   summarizes  the  key  Cindings  of  KPMG’s   recent  consumer  survey  entitled  “Luxury   Experiences  in  China.”   www.thechinaobserver.com  |  Data  &  Facts
  3. 3. OBSERVER Trend  1   China’s  luxury  buyers  are  basing  their   purchasing  decisions  upon  an   increasingly  wide  range  of  factors.   Emotive  factors  such  as  experience  and   self-­reward  have  now  emerged  alongside   status-­seeking  and  needs-­based  factors  as   key  drivers.   www.thechinaobserver.com  |  Data  &  Facts
  4. 4. OBSERVER Trend  2   There  is  a  new  wave  of  luxury  collecting  and   connoisseurship  which,  although  still  less   signiCicant  overall,  is  particularly  evident   among  the  wealthy  in  tier-­two  and  even  tier-­ three  cities.  While  the  past  year  has  seen  an   explosion  of  interest  in  Cine  wine,    the  KPMG   survey  suggests  that  jewelry,    Cine  art,  and   antiques  also  have  strong  growth  potential.   www.thechinaobserver.com  |  Data  &  Facts
  5. 5. OBSERVER Trend  3   Luxury  brands  are  spending  more  time   developing  digital  media  as  part  of  their   marketing  strategies.  Nearly  70%  of   KPMG’s  survey  respondents  said  they   search  for  information  about  luxury  brands   on  the  internet  at  least  once  a  month,  and   30%  do  so  at  least  once  a  week.   www.thechinaobserver.com  |  Data  &  Facts
  6. 6. OBSERVER Trend  4   While  ofCicial  websites  can  be  an  important   means  for  validation  and  comparison  of   products,  China  has  seen  a  growing  number   of  blogs  providing  coverage  of  luxury  goods   and  these  can  be  more  powerful  in  shifting   or  reinforcing  brand  perceptions.   www.thechinaobserver.com  |  Data  &  Facts
  7. 7. OBSERVER Trend  5   Although  becoming  more  open  to  online   sales,  consumers  continue  to  show  an   overwhelming  preference  to  purchase  big   ticket  items  such  as  watches  in  branded   stores.   www.thechinaobserver.com  |  Data  &  Facts
  8. 8. OBSERVER Trend  6   On  average,  Chinese  consumers  now   recognize  57  luxury  brands,  a  Cigure  that  has   risen  steadily  over  successive  KPMG  surveys.   Respondents  in  tier-­one  cities  recognize  61   brands  compared  with  an  average  of  53  in   tier-­two  cities.  The  market  is  becoming  ever-­ more  crowded.   www.thechinaobserver.com  |  Data  &  Facts
  9. 9. OBSERVER Trend  7   Chinese  consumers  also  distinguish  very   clearly  among  countries  of  origin,  and   associate  certain  countries  particularly   strongly  with  certain  products;  for  example   Switzerland  for  watches,  France  for   fashion,  accessories  and  cosmetics  and   Italy  for  footwear.   www.thechinaobserver.com  |  Data  &  Facts
  10. 10. OBSERVER Trend  8   There  continues  to  be  an  extremely  strong   association  with  European  brands  at  the   expense  of  brands  from  other  regions,   suggesting  that  brands  of  other  origins  need   to  consider  how  to  distinguish  themselves,   or  create  a  niche.   www.thechinaobserver.com  |  Data  &  Facts
  11. 11. OBSERVER About  The  China  Observer   The  China  Observer  is  the  premier  source  for  actionable   insight  into  marketing  and  consumer  trends  in  China.     Visit  The  China  Observer  (http://thechinaobserver.com)   for  consumer  data,  case  studies  and  senior  marketing   executive  interviews.   For  a  copy  of  the  full  KPMG  report  visit  this  link  .   www.thechinaobserver.com  |  Data  &  Facts

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