Jing Daily: luxury brands should do more to target Chinese consumers
According to a report on Jing Daily, the leading digital publication on luxury consumer trends in China, luxury brands worldwide should be doing more to target Chinese consumers. They cite media company Kinetic, which analysed the global luxury shopping market in an effort to discover the “largest demographics in international luxury shopping”. The result? Undoubtedly, the biggest bloc is Chinese travelers, who account for almost a third of global luxury purchases worldwide.
Forecast for Mainland Chinese demand for luxury goods, 2010 – 2020
Benjamin Bourinat, global director of social media at Kinetic, said: “Culturally, most European marketers still see location as a retail or franchise technique. We think location data is a core variable that delivers context (location, time, emotion) and greater value.”
Discussing the report’s findings with Jing, he added:
“With 64 percent of affluent Chinese buying luxury brands while traveling, which is 11 percent higher than the 53 percent who purchase luxury online, luxury retailers need to create more contextual experiences to suit the tastes and preferences of Chinese customers, such as personalizing content interactions via the platforms they use and travel with, using native-language specific copy, or portray diverse talent in their ads. For example, whether at Charles de Gaulle airport or on Avenue Montaigne, European luxury brands need to create location-based, geofenced programs leveraging the mobile-social platforms Chinese travelers use, such as WeChat or Weibo, in the moment.”
Luxury is already a hugely internationalized sector; but it often still wears a European or American face. With 30% of all luxury purchases globally being made by Chinese on the move in 2016, that may well be about to change.
Dominion holds a number of luxury companies in its Global Trends Luxury Fund that are highly exposed to Chinese consumers, both at home and abroad. Additionally, it holds Tencent, the owner of WeChat. In its Global Trends Ecommerce Fund.
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