Contrary to the nascent recovery of the world economy, the luxury industry has been thriving since 2010 and is reaching an increasingly large public.
The new middle classes in emerging countries, who now have the purchasing power to indulge in exceptional products and services, are joining the ranks of traditional luxury consumers. Although these new consumers share the same expectations in terms of quality, motivations differ according to their countries and cultures. Many luxury brands are, therefore, devoting themselves to understanding these new consumers - their aspirations, expectations, buying habits and motivations.
In order to appeal to the increasingly younger profile of luxury consumers, luxury goods makers have pulled out all the stops to demonstrate innovation and originality on top of value creation, while at the same time increasingly tailoring the shopping experience to the diversity of luxury shoppers. Two key factors have also come to the fore in recent years: the growing combination of tourism and consumerism, and rising Internet sales.
For these reasons, major luxury players are especially conscientious about examining the specificities of their sector, region by region. China, which alone generated one-quarter of the world’s luxury purchases in 2012, is a key market for them1.
1 Study elaborated in 2012 by Fondazione Altagamma and Bain & Co Italy
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1/ According to a study published by KPMG in 2011, Chinese consumers associate luxury goods with certain countries and are strongly attached to European brands, especially French brands. In fact, France ranks first for cosmetics and fragrance (mentioned by 76% of respondents), fashion (37%) and handbags (33%).
2/ As the world’s leading luxury consumers, Chinese shoppers alone now purchase 25% of all luxury goods in the world, making them the biggest consumers in this sector, ahead of the Americans (Bain & Company, December 2012).
3/ Chinese shoppers mainly buy their cosmetics in Hong Kong, Taiwan and Macao (60%), then in continental China (51%) and in Europe (20%) – where France is a market reference (KPMG study, March 2013).