Why China is Redefining Luxury

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Why China is Redefining Luxury WHY CHINA IS REDEFINING LUXURY BY

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Chinese consumers are spending more on luxury products than any other country. Having leapt past Japan, China has become the paramount driver of growth in this sector, accounting for over one-quarter of the global total. But how to capture the heart and soul of the Chinese consumer? THE WORLD’S LARGEST LUXURY MARKET

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While high earning Chinese consumers are known for their love of luxury items and the status they bring, new research reveals there is a new characteristic these consumers are looking for – craftsmanship. REDEFINING LUXURY

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‘Craftsmanship’ was claimed by 64% of urban Chinese consumers as the word most defining luxury – ahead of ‘expensive’ at 58% and ‘status’ at 53%. REDEFINING LUXURY (cntd)

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PROVIDING CRAFTSMANSHIP IN PRODUCTION & DESIGN In addition, a massive 94% agreed that they identify luxury brands as those providing craftsmanship in production and design. Respondents’ annual salary who agreed that luxury was defined as craftsmanship

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The Chinese consumer has become more sophisticated after just a few years’ experience as buyers of luxury products. This is driven by the recent austerity measures and means that consumers feel flashy logos and opulent luxury reflect badly on who they are. IT’S NOT ABOUT THE LOGOS

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Luxury brands also have an opportunity to appeal to an increasingly relevant group of consumers known as the HENRYs, or High-Earners-Not-Yet-Rich. HENRYs are important because they represent future ultra-affluent and wealthy consumers. By establishing a personal connection with these individuals, brands can guarantee that they will continue to make purchases when their income increases. MAKING A CONNECTION

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The future will herald customers for whom, all aspects of luxury are transparent and as such, will increase their expectations of luxury brands. The future will be about customers demanding more impact and quality for their money. An increasing significance of sustainability when considering purchasing decisions. Even luxury brands will have to demonstrate both environmental and social responsibility. As we move towards 2020 there will be a greater requirement for luxury brands to be exemplary citizens. It is also a natural return to the essence of luxury - the idea of the artisan hand crafting products with passion. THE FUTURE

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Contact us: Hello@positiveluxury.com REFERENCES: The McKinsey Chinese Luxury Consumer Survey Agility Research & Strategy Latest Luxury Trends Survey: Mintel & Unity Marketing Seymour Sloan