Anyone who covers business news knows that China has become ‘controversial’. When it comes to luxury, China was once the key primary market that brands would invest in. Opening a boutique in Shanghai was essentially a license to print money. Recently, Louis Vuitton made the rare announcement that they were closing some of their stores in tier 2 cities in the Mainland and other brands have also hinted to closures amidst a slowdown in spending.
Blame it on China’s austerity campaign? Don’t even think about it. It’s statically proven that Chinese people still consume luxury goods at a high rate. The only difference is where they consume it. What about store closures and brands pulling out of the Mainland? Is there an actual cash shortage among consumers? Try again! The luxury Chinese consumer is evolving at a rapid pace and 2 words sum up how to approach the the complexity of the market: global and online.
Some numbers to consider:
- China accounts for 1/3 of total worldwide luxury spending so even a bad year is an important year to luxury brands
- Luxury spenders in China ballooned from 140 million in 2000 to 350 million in 2015 meaning even a down tick in individual spending could be made up with new spenders coming to market
- Analysts estimate 100 million new luxury spenders in the waiting which is 100 million potential new customers for luxury brands Source
Digital Luxury Group specializes in luxury marketing and will be hosting its Luxury Society Keynote for the first time in Shanghai on December 8th. Titled “Reaching the Global Chinese Luxury Consumer‘, the event brings together 150 worldwide luxury experts to discuss the very issues facing luxury brands in connecting and selling more to the complex yet extremely valuable Chinese consumer.
Affluent Chinese have shown an affinity to spending more on luxury travel and experiences. Those trips are combined with shopping excursions and junkets that are driving luxury spending overseas. Affluent Chinese are also early adopters of technology and are quick to take their luxury spending online. Sites like Alibaba and 5LUX.com are experiencing robust business in luxury goods while chat apps like WeChat have become important marketing outlets for luxury brands.
DLG’s upcoming keynote will address the need for specific strategies when selling in China, out of China and online in China.
By Doron Levy Courtesy TheTopTier Digital Media
Read DLG’s official press release:
GENEVA, NOVEMBER 26 2015 – Luxury Society, a division of Digital Luxury Group, will debut its first Keynote event in China, on Tuesday 8th December 2015, at the Four Seasons Shanghai Pudong. Entitled, “Reaching the Global Chinese Luxury Consumer,” the event will bring together an exclusive group of 150 luxury professionals in the Asia Pacific region, to identify digital strategies to connect with Chinese luxury consumers at home and abroad.
David Sadigh, Founder & CEO, Digital Luxury Group parent company of Luxury Society, comments: “It’s astounding to think that as much as 30% of consumption – within a €1 trillion luxury industry – is accounted for by Chinese nationals. Yet there are so few global luxury brands with compelling digital communications & distribution strategies in China. The ability of luxury brands to connect with Chinese consumers locally, serve them internationally and continue to engage them wherever they may be, will be a key factor in the future success of brands on a global scale.”
The region’s local luxury market is undergoing a fundamental shift, brought on by evolving customer dynamics, an influx of new, emerging luxury labels, and an economic slow-down (Bain 2015). Luxury brands in China will need to step up their game to match new customer expectations and market conditions, which are both changing rapidly at the hands of connected Chinese luxury consumers.
The afternoon event – Luxury Society’s 11th Keynote event – will debate the merits of China’s KOL’s in the luxury brand marketing plan, whilst evaluating local eCommerce opportunities, and identifying the link between Chinese social media and CRM.
Confirmed Speakers Include:
- Claire Chung, General Manager China, The Net-a-Porter Group
- Pierre Delfosse, Director of Consumer Intelligence, Pernod Ricard China
- Sophie Doran, Managing Director, Luxury Society
- Josh Gardner, Founder & CEO, Kung Fu Data
- John Hamilton, Director, Marketing Communications, Asia-Pacific, Four Seasons
- Penny Li, General Manager China, Farfetch
- Pablo Mauron, General Manager China, Digital Luxury Group
- Michelle Ye, Blogger & Stylist, Chez Mintvanilla
- Rekko Zuo, New Media Editor in Chief, Grazia
Sophie Doran, Managing Director of Luxury Society, commented, “Since 2013, Luxury Society has connected more than 2000 luxury professionals in Paris, New York, London and Hong Kong. We are thrilled that our Digital Luxury Group’s growing Shanghai bureau can support Luxury Society’s first keynote event in China, and provide a platform for local and international executives to connect and debate the most pressing questions posed by Chinese consumers today.”
Keep up to date with further speaker announcements and crucial industry insights on Twitter by following: lskdigital-shanghai.com