China's young consumers to drive global luxury market growth: report

Source: Xinhua| 2019-07-31 19:28:14|Editor: Xiaoxia
Video PlayerClose

BEIJING, July 31 (Xinhua) -- Chinese young people are expected to be robust drivers of domestic and global personal luxury goods sales thanks to solid consumer confidence and purchase willingness, an industrial report showed.

The global personal luxury products market is likely to expand 4 percent to 6 percent this year with the Chinese mainland as one major contributor, according to a report released by global management consulting firm Bain & Company and Italian luxury goods manufacturers' industry foundation Fondazione Altagamma.

China might continue its dominance in the global luxury scene, said Bruno Lannes, a partner with Bain & Company, adding that Chinese consumers show a strong preference for buying luxury goods at home thanks to price adjustments, consumer-centered strategies and government initiatives.

The young generations, in particular, post robust consumer confidence and purchase willingness, which might help drive year-on-year market growth of 18 percent to 20 percent at a constant exchange rate in China, the report showed.

Chinese born after the late 1990s, also known as the Generation Z, will be one of the factors shaping the future luxury market as they "have significant spending force as proud and empowered impulsive buyers," according to the report.

A previous Bain report showed that Chinese expenditure on luxury goods jumped 20 percent last year, accounting for one-third of the global market.