First-time luxury consumers are shaping the “new luxury” in China.
The new luxury” in China
With their preference for self-rewarding consumption and sustainable pursuit, luxury newcomers are placing categories under further expansion. All categories face enormous development potential. Only international luxury brands that understand and respect the growth curve will be the ones to manage future opportunities in the Chinese market. What should you watch?
Fashion & Accessories in China
The clothing and accessories categories will be supported by the winter sports and outdoor clothing collections. With the Winter Olympics taking place in Beijing in February 2022, the winter sports market is booming. On Tmall, winter sports equipment sales were up 140% year-on-year during the first hour of Nov. 11 sales. Meanwhile, Moncler doubled sales in mainland China while Canada Goose increased direct sales by 86%.
Bags & Leather Goods in China
The bags and leather goods categories will be affected by the Chinese government's latest measures to protect endangered species and consumer interest in sustainable leather. A gradual shift opens towards exotic leathers such as crocodile, python, sturgeon, etc. While Chinese customers are looking for traditional leathers, others are turning more to vegan leathers like apple leather.
Watches and Jewelry in China
The watches and jewelry categories will be driven by Gen Z which accounts for 30% of consumption and +105% YoY GMV growth. In particular, men in Tier 2 and Tier 3 cities are reshaping the face of the market with new consumption habits and new trends. Consumer demand is mainly focused on style and design, with particular fondness for manga, anime, traditional Chinese style and outdoor extremes. The fine jewelry market is now changing its face with new disruptive designs.
Premium Cosmetics in China
The luxury cosmetics category will be boosted by perfume sales. According to Mintel's latest report, the fragrance industry in China is set to grow at an annual rate of +17% by 2025. Chinese luxury consumers are now seeking sensory experiences with interactive events to dive into the world of perfumery. Major market players are now investing in their fragrance portfolio in China. At the same time, Coty confirmed a +50% increase in prestige fragrance revenues in China.
