2021-12-03-腾讯营销-中国数字奢侈品报告（英）_53页_7mb

Summary of the 2021 Tencent X BCG China Digital Luxury Report

Core Content

The 2021 Tencent X BCG China Digital Luxury Report highlights the significant transformation in the Chinese luxury market, driven by the rise of a new generation of consumers—primarily the post-90s generation. This demographic shift is reshaping consumer behavior, preferences, and market dynamics, creating new opportunities for luxury brands to grow and adapt.

Main Points

1. Demographic Shift and Market Growth

• The post-90s generation now represents 50% of the total luxury consumer base and contributes 46% of luxury sales, becoming the backbone of the market.
• The market is expected to grow by 23–25% in 2021, with the post-90s generation as a key driver.
• Heavy-spending consumers (annual spending > RMB 300K) make up 11% of the consumer base but contribute 40% of total sales, showing strong growth potential.

2. Consumer Mindset and Behavior

• The post-90s generation values self-rewarding and personal expression over traditional gift-giving.
• They are less brand loyal, with less than 40% claiming to be loyal to specific brands.
• Social influence plays a crucial role in their purchasing decisions, especially through friends and KOLs.
• Digital engagement is increasing, with online channels accounting for 1/3 of total transactions in 2021, and expected to grow further.

3. Category Preferences and Penetration

• Ready-to-wear and footwear are the fastest-growing categories, reflecting a preference for expressive and versatile items.
• Handbags, jewelry, and watches remain popular, with expensive and exotic leather as premium subcategories.
• Accessories show a slight dip in penetration, suggesting a shift in consumer interest.

4. Channel Preferences

• Offline stores remain the most important sales channel, contributing the largest share of sales.
• Online channels, especially brand-operated WeChat Mini Programs, are gaining traction and expected to see nearly 30% sales growth in the next year.
• E-commerce platforms are preferred by post-90s light-spending consumers, while WeChat is favored by medium-spending ones.

5. Segment Insights

Segment 1: Post-90s Light & Medium-Spending Consumers

• 45% of the total consumer base, with the fastest growth rate.
• Prefer novel and trendy offline experiences, celebrity marketing, and creative content.
• Self-expression is key; they are more influenced by fashion trends and social media.
• Online shopping is becoming more prevalent due to stressful in-store experiences and the need for convenience.

Segment 2: Heavy-Spending Consumers

• 11% of the consumer base, but 40% of total sales.
• Highly brand-aware and knowledgeable, often acting as brand ambassadors.
• Value design, brand culture, and personalized service.
• Store service is a top priority, with a preference for smaller stores that offer better service and a more personalized experience.

Key Insights

• Experience over promotion: Consumers prioritize brand experiences and personalized interactions over traditional promotions.
• Digital ecosystem: Brands must build a strong digital presence to engage the younger, tech-savvy post-90s generation.
• Social media influence: WeChat and short-video platforms are powerful tools for reaching and engaging consumers.
• Brand loyalty is evolving: While pre-90s consumers value brand loyalty, post-90s consumers are more likely to switch brands based on experience and trends.
• Resale value is an important factor for post-90s consumers, especially when making high-value purchases.
• Aesthetic shift: The post-90s generation places more emphasis on artistic value and personal style compared to previous generations.

Strategic Recommendations

• Enhance brand experience: Offer exclusive and personalized services to retain and grow both segments.
• Leverage digital channels: Focus on WeChat Mini Programs and online flash sales to engage the post-90s generation.
• Strengthen brand culture: Develop deep connections with consumers through fashion shows, exhibitions, and celebrity collaborations.
• Optimize omnichannel integration: Provide seamless and integrated services across online and offline channels to meet the diverse needs of consumers.

Conclusion

The Chinese luxury market is undergoing a significant transformation as the post-90s generation becomes a dominant force. Brands must adapt their strategies to cater to the individualistic and socially driven nature of this segment, emphasizing personalized service, digital engagement, and experiential marketing. Simultaneously, heavy-spending consumers remain a crucial segment, requiring consistent brand interaction and superior service to maintain loyalty and drive sales. The future of the luxury market in China depends on effectively understanding and addressing the evolving needs of these two priority segments.