This week in news, Bain & Co. and Redburn’s study on luxury consumers sheds light on the Chinese luxury consumer, international brands are bringing culturally-targeted advertising campaigns to China, WeChat is the hottest mobile app in China, and a policy change is allowing Chinese urbanites to shop internationally online.
There are an estimated 300 million luxury consumers worldwide spending US$295 billion in 2013, according to Bain & Co. Chinese luxury consumers were the third largest consumer group at 14 percent, behind the US (27 percent) and Europe (24 percent), but they were the second highest spenders at US$1.7 billion, after the Middle Eastern consumers (US$1.9 billion).
China’s 2013 policy change allowing third-party payment platforms to offer their customers cross-border consignments has generated a booming international e-commerce, and international brands, including Zara, Uniqlo, and The Gap, are taking notice. According to the Bain & Co. consultancy, almost 60 percent of consumers have done at least some luxury shopping via these domestic platforms.
China’s social media app WeChat, or Weixin, is now the most popular service of its kind in the country, judging by the explosive consumer reaction to its Chinese New Year promotion. More than 5 million WeChat users sent more than 75 million e-hongbao to each other between Chinese New Year’s Eve and 4pm on January 31st. The app’s success has attracted international brands to its platform, including Pepsi and British Airways.
Beijing-based China Investment Network has published a list of China’s richest cities based on government revenues in 2013.
China’s strong Confucian and Daoist cultural roots have created a consumer mindset that is distinct from that of Western countries. Although China’s luxury market is lucrative, luxury brands often lack effective marketing campaigns on the mainland.
Image source: myretailmedia.com