BEIJING, May 29 (Xinhua) -- China's young consumers present a promising prospect for the world's designer brands, China Daily reported Wednesday.
By 2026, Chinese luxury spending is expected to double to 1.2 trillion yuan (173.6 billion U.S. dollars), accounting for almost two-thirds of global growth in luxury spending, a new luxury report by consulting firm McKinsey&Co was quoted as saying by the paper.
Young Chinese consumers in particular are eager to tap luxury as a means of social advancement and self-differentiation. They view ownership and affiliation with designer brands as a form of social capital, not just something to wear, but a lifestyle choice that marks them as part of a distinct and exclusive community, the report found.
Last year, Chinese consumers spent 770 billion yuan on luxury items, with each luxury-consuming household spending an average of 80,000 yuan per year, based on transaction data of UnionPay.
Promoting iconic style is key for brands, including developing a Chinese nickname to increase the possibility of going viral on social media. While discovery comes from multiple channels, purchases are mostly made in store. Brands should also team up with key opinion leaders (KOLs) to help stimulate excitement for product launches, the report found. Enditem
