Retail marketing, brand experiences and consumer engagement specialist CircleSquare has released a new 50-page report on the Chinese luxury market, titled China: Defining the new luxury. It carries a wide variety of insights into reaching a new generation of Chinese consumers.
The study covers the key cultural trends that are influencing the way Chinese luxury customers think, shop and buy, and highlights them using case studies featuring worldwide luxury and home-grown Chinese brands.
The report – which has a particular focus on targeting the Gen Z shopper, the young and affluent demographic which is set to become the dominant luxury consumer group in China by 2025 – focuses on four key cultural trends identified by CircleSquare.
These are GuoChao (literally ‘national pride’ and a growing trend across the China), Shoppertainment (and the search for escapism), Conscious Luxury (the rising impact of environmentalism, sustainability, diversity and empowerment) and Seamless Experiences (the expectation of a personal relationship with brands).
The report concludes with a set of takeaways, including guiding thoughts around disruption, innovation, storytelling, experience, loyalty and personalisation.
CircleSquare Managing Partner Stephane Zermatten said: “Despite what we are told, the brand experiences that appear to work in Paris, New York or Milan are actually lagging way behind the zeitgeist of what the fast-evolving Chinese customers expect from luxury brands.
“Brands need to be ready to serve their customers where they are across a multitude of touchpoints in a proactive, consistent and personalised manner to build relationships and long-lasting loyalty. Only the brands that have replaced their universal approaches with personalised experiences and customised products for the Chinese market will succeed in the next five years.
“With our report, we have set out to investigate the key trends which are shaping the luxury market in China and offer insights on how brands can succeed in engaging with and ultimately capturing the business of China’s new generation of luxury shopper.”