Luxury brands in China are bouncing back through their online sales. The latest 618 Shopping Carnival has revealed that luxury brands in China again have hit the record. Luxury brands such as Burberry, Chloé, Miumiu, DeBeers, etc., have seen their sales in the first 30 minutes at the end of May exceed the sales during the shopping festival a year ago. Apparel brands like Moncler and LEMAIRE participated in this year’s 618 Event for the first time. According to JD.com, luxury apparel brands like Max Mara and Valentino have seen a 200% increase in sales compared to the year before. (The Video example shows Valentino promoting its AW23-collection through their official Weibo account to the JD flagship store during the 618 shopping festival)
By 2025, Millennials and Generation Z will account for 55% of the global personal luxury goods market (Bain & Company). In China, the post-1980s generation has accounted for more than half of the luxury consumers. The future generations have shaped the luxury industry, and luxury brands progressively evolved to the younger target group through products, branding, and communications. The younger Chinese generation has been more open to trying new products than their international "peers".
When it comes to communication, the luxury brand must present itself as both unique and incorporate the growing awareness into its Storytelling:
- A strong brand image and value proposition, especially to demonstrate the brand’s social responsibility.
- Value personalized experiences and in-store environment.
- Not only relying on celebrities but also leveraging the power of KOCs (micro-influencers) which the younger customers can easily relate to themselves.
- A strong brand WOM (word-of-mouth) establishment to cater to the digital natives actively browsing through all channels.
Source:
https://jingdaily.com/marketing-china-gen-z-millennials/
https://www.sohu.com/a/687171170_339728
