The growth of the middle and upper classes, and urbanization, remain strong and are also expected to improve jewelry market conditions in the next few years. However, complications advance in a constantly changing market and with a culture and use of communication channels completely different from ours. Therefore, a thorough analysis of the opportunities, and an understanding of the Chinese world, especially the increasingly growing Chinese digital world, is necessary before going to invest in this market.

New Chinese jewelry consumers: from Millennials to Children

With demand in the first-tier cities reaching maturity, second and third-tier cities become a more important driver of growth and contribute more to the Chinese jewelry market.

Read: China Jewelry Market Guide

Anyway, the market in the first-tier cities is obviously not shrinking, so companies should continue to improve their positioning and branding to satisfy sophisticated customers in these cities.

Currently, the Chinese jewelry market has a wider target market which includes:

• Women
• Millennials
• Men
• Children

Women are more likely to buy jewelry for themselves

Consumption of the Chinese jewelry market is dominated by women. 63% of jewelry products are purchased by women. Looking at the opportunities for companies, brands should know that this is a highly competitive market.

However, a new trend is spreading: while many Chinese still wish to receive diamonds as a symbol of a future marriage, many others are more likely to buy diamonds for themselves. This is due to the growing number of working women (25% of women in China are already earning more than their spouses).

• For Chinese women who wish to receive diamonds as a symbol of future marriage, emotional drivers that let people buy jewelry are particularly powerful. Therefore, creating an emotional marketing campaign, especially during some Chinese festivals (520 Day, the Chinese Valentine’s Day) is a good option to sell jewelry to women.

• For women who buy diamonds for themselves, brands should adapt their product line, keeping away from the promotion based on love and showing images of women and not just couples.

Millennials a strong consumer group

The growing attention to consumption and personal decoration as self-expression in millennials is exerting an increasing influence on the demand for jewelry.

Millennials increasingly appreciate the jewels to wear every day, they also value the experience of things. For example, Pandora is very popular in China because, by launching new products on various holidays, its Moment series bracelets offer different options for Chinese customers.

Men are a flourishing target market for Jewelry brands in China

The men’s market products in China include rings, tie clips, cufflinks, and belt buckles. In addition, among Chinese males in the 30-44 age group, 67% wish to own diamonds.

The male jewelry market is still in the early stage of its development, therefore, opportunities for brands are many. Furthermore, their demand is not well satisfied as, for example, brand’s male products lack of innovation about design and most of them are gold rings or bracelets and not diamonds.

Jewelry for children as a way of wishing them a happy life

In accordance with Chinese traditions, people give bracelets and necklaces to children as goodwill tokes and as a way of wishing them a healthy and happy life.

In response to this demand, many companies have introduced a variety of kids’ products. For example, Chow Tai Fook, the Hong Kong company, also cooperated with Disney, Line, and Marvel, attracting parents to buy for their children.

In response to changing marketing conditions, jewelry players are increasingly targeting younger consumers and trying to build a presence in second and third-tier cities mainly because the Internet penetration rate in these cities is taller than before and people are more easily influenced by KOLs when making a purchase decision.

The first-tier cities are changing the shape of consumerism in China

In the jewelry industry in China, gold products have always been the most popular category and accounted for more than half of the industry’s revenue, followed by diamonds, jade, and silver.

In recent years, gold jewelry has faced stiff competition from gems or other jewelry products in top-tier cities. However, this competition is not present in lower-tier cities, where consumers flock to buy high-caliber gold jewelry for wealth conservation purposes.

What are the opportunities for foreign brands in China’s jewelry market?

The jewelry market in China is still dominated by foreign brands. Chinese consumers greatly appreciate the personalization of the products, the history of the brands and are involved in the design of the jewelry.

In China, the products of foreign brands such as Cartier, Bulgari, Tiffany, and Swarovski are priced higher than national brands for their long history. While most Chinese jewelry brands have no more than one hundred years of history and the price is of course cheaper. Therefore, the products of foreigners and locals are positioned on two different levels which lead to a specific selection of consumers.

In 2018 Chow Tai Fook Jewelry Group maintained the lead in jewelry in China. Chow Tai Fook Group implemented a multi-brand strategy, building a high-end jewelry brand image. The company provides a prominent example of a jewelry player who has tried to follow new trends by developing both offline and online.

The most important trend in China’s jewelry market is the digitization

The rapid increase in e-commerce in China has forced traditional retailers to focus on the unique qualities of shopping, leading to the development of integrated multi-channel sales strategies, in which online stores and platforms complement each other.

Online shopping has actually become the best national pastime in China with around 77% of respondents choosing it as their favorite recreational activity. 80% of consumers look for and learn about jewelry products and 60% of them buy on the Internet.

Almost all the main players in the jewelry industry in China have their own store on Tmall or/and JD.com. I addition, Pinduoduo could be another good option to sell your products on the internet.

If you want to know how to open a store on Tmall/JD and how to manage it, contact GMA, we offer services like:

• Shop Design (We make your shop attractive to Chinese buyers, putting your products on the best possible light)
• In-platform Advertising (Tmall is a more than a store. It is a product Search Engine. We use Tmall promotion tools and Ads to help you Sell)
• Off-platform Marketing (KOL, e-reputation, Banner ads, we have experts for each of these promotional strategies)
• Reporting & Analysis (We monitor your shops & ads results, optimize them to get you the best ROI. Then we provide you with easy-to-digest reports).

However, both for big and small companies, with or without a presence in the Chinese market, what is necessary for China is BRANDING. Before opening an online store on this platform, brands should focus on branding and e-reputation as it is essential in China to sell products.

Brands can use Wechat, Weibo, Xiaohongshu, and Douyin to:

• reach Chinese consumers,
• create branding,
• increase brand awareness,
• increase e-reputation,
• promote jewelry products,
• sell products.

The importance of Branding for jewelry brands

The rising of millennials, a highly branded demographic as a key consumer group for jewelry in China, has greatly strengthened the brand’s role in jewelry.

While some high-end jewelry brands attract customers by telling brand stories, such as Cartier, other young brands without such a long history should strengthen their visibility and promotion on Chinese digital channels such as Baidu, social media, forums, etc.

How to communicate with Chinese consumers and create branding?

Creating a Chinese website on Baidu to strengthen your Jewelry brand visibility

Create a Chinese website to be visible among Chinese consumers is essential for branding in China. Of course, it should be created on Baidu, the Chinese Search engine.

In addition, to be visible, your Mandarin website should be hosted in China because Baidu knows only Mandarin and gives priorities to websites hosted in China, so they are extremely important for your SEO ranking.

Opening accounts on social media to promote jewelry products

WeChat: an efficient channel to communicate with Chinese consumers

WeChat is the most used Chinese social media, with its 1.165 billion monthly active users.

It allows companies a complete CRM through:

• The ability to create Wechat official accounts (Subscription, Service)
• Interact with followers and keep them updated on brand news
• Use mini-programs, small apps inside the WeChat system that cover various functions, such as e-commerce, games and much more.
• Use wechat pay
• Use wechat advertising (Wechat moment ads, wechat account promotion, wechat mini program ads, wechat article banner ads).

Cartier was the first luxury jewelry brand to use WeChat moments ads. Thanks to its effort on marketing campaign on this platform, Cartier’s WeChat account gain a huge following. Cartier marketing resulted in raised brand awareness and increased desire from consumers.

Besides WeChat, Weibo and Douyin are also witness a joining of jewelry brands. Domestic jewelry brand I DO has 38 thousand fans on Douyin and is one of the most popular jewelry brands on it. Recently, Chanel cooperated with Douyin, posting videos about its watch, gaining up to 73 thousand views.

RED Xiaohongshu: The social-eCommerce platform to promote and sell jewelry in China

Xiaohongshu is an incredible platform to sell jewelry products in China because thanks to its characteristic of being social e-commerce, consumers can both receive advice from KOL and trusted people and at the same time, they can directly purchase products on this platform.

In addition, live streaming on this platform is very important because, in the online market, the biggest challenge for jewelry companies is to inspire trust in customers. Through these videos and thanks to the collaboration with the KOLs, companies can obtain reliability from consumers who see in real-time what they are buying.

In addition, recent regulations on improving the reliability of these platforms will increase the possibility of selling your products very easily on the platform.

Use Q&A platforms like Zhihu to interact with your community

Recommendations in China are fundamental for people in their pre-purchase decision, the Q&A platform Zhihu is an amazing option where consumers gain recommendations from other consumers that already tried products.

In addition, companies should build a positive brand image on Zhihu through:

• Opening a professional official account which allows you to interact and communicate with users or even act as an industry representative to provide useful answers to questions on the platform.
• Managing the Zhihu community asking questions or posting answers. This helps improve credibility and provide a professional brand image by providing high-quality content.
• Producing learning materials through live streaming
• Leveraging KOLs. Whether you are interested in boosting awareness or generating leads, a KOL can do wonders for reaching your ideal audience.

For jewelry brands looking to expand or strengthen their presence in this vast market, it is crucial to address specific business-related questions to tailor strategies effectively. Here are five pertinent business questions that jewelry brands should consider:

1. What consumer trends are currently shaping the jewelry market in China?
   • Understanding the latest trends in consumer preferences, such as the growing interest in sustainable and ethically sourced materials or the popularity of certain styles (e.g., minimalist jewelry, traditional designs, or luxury statement pieces), is crucial.
2. How does the cultural significance of jewelry vary within different regions of China?
   • Jewelry often holds significant cultural and symbolic meanings in Chinese culture, such as in wedding traditions or gift-giving.
3. What is the competitive landscape for jewelry in China, and how can a brand differentiate itself?
   • Identifying key competitors and their market positioning is essential in China!
   • What unique selling propositions do these competitors have, and what gaps are there in the market that your brand could potentially fill?
   • How can your brand differentiate itself through product offerings, customer service, or marketing strategies? an agency can guide you .
4. How can a jewelry brand leverage digital marketing and e-commerce platforms effectively in China?
   • With China’s digital ecosystem being unique and dynamic, which platforms are most effective for jewelry marketing? Consider the role of platforms like WeChat, Tmall, and JD.com in e-commerce sales, or Weibo and Douyin for marketing. What digital strategies can be employed to maximize visibility and sales online?
5. What are the logistical considerations for distributing jewelry in China?
   • Logistics in China is not challenging, especially for luxury goods that require reliable handling. What are the best practices for inventory management, shipping, and handling?

GMA can help you to open and manage accounts on Chinese social platforms, Contact us for additional information!

In order to promote your brand and if you have any questions related to how to enter the Chinese Jewelry market, contact GMA now!

Read also:

• CHINESE INFLUENCERS (KOL) CAN MAKE A LOT OF MONEY !
• WHAT IS THE DIFFERENCE BETWEEN BAIDU SEO AND SEM?
• PINDUODUO ECOMMERCE: AN OPPORTUNITY FOR SMALL BRANDS IN CHINA

The middle class is growing and so is the will of Chinese people to spoil themselves and spend money on luxury goods and services. But the Chinese luxury goods market is a demanding one and the competition is growing, as domestic luxury brands are joining the table. In this blog post, we will see what is the best way for foreign brands to reach out to Chinese shoppers and sell luxury goods in Mainland China.

Actionable GMA tips for New Luxury Brands in China

New Brands aiming to establish a strong presence in China’s luxury market must adapt to the unique communication landscape and consumer expectations. Here are five tips for luxury brand communication in China, each accompanied by an elegant quote and relevant brand references to illustrate these strategies:

1. Leverage Key Opinion Leaders (KOLs):
   • “Influence is not about elevating self, but about lifting others.” – Sheri Dew
   • Example: Brands like Gucci and Chanel have effectively used KOLs to reach affluent audiences. These KOLs, often celebrities or well-known fashion influencers, create aspirational content that resonates with their followers, amplifying brand prestige and desirability.
2. Engage on Douyin for Visual Impact:
   • “A picture is a poem without words.” – Horace
   • Example: Burberry has utilized Douyin by creating visually stunning short videos that showcase their latest collections through artistic storytelling, thus engaging a younger, tech-savvy demographic that appreciates both luxury and creativity.
3. Host Interactive Live Shows:
   • “The art of communication is the language of leadership.” – James Humes
   • Louis Vuitton has embraced live shows on platforms like Douyin and Weibo, where they not only showcase products but also engage directly with consumers through real-time interactions, offering a personalized shopping experience that enhances brand loyalty.
4. Master RED (Xiaohongshu) for Community Engagement:
   • “Engaging the hearts, minds, and hands of talent is the most sustainable source of competitive advantage.” – Greg Harris
   • Dior effectively uses RED, a social media platform that combines lifestyle blogging with e-commerce, to inspire and engage with a community interested in fashion, beauty, and luxury lifestyle. They encourage users to share their own content related to Dior products, fostering a participatory brand culture.
5. Develop Content That Resonates with Cultural Preferences:
   • “Culture eats strategy for breakfast.” – Peter Drucker
   • Burberry has tailored its content to reflect Chinese aesthetics and cultural elements, resonating deeply with local values and tastes. By integrating elements of Chinese art and culture into their campaigns, they create a sense of cultural respect and relevance that appeals to Chinese luxury consumers.

Luxury brands can cultivate a strong presence in China, engaging sophisticated consumers through culturally nuanced, digitally savvy, and visually appealing communication approaches.

Can you succeed for a luxury brands without Marketing ?

No. it never has been done

Little Red Book, the Chinese instagram favorite social media for Luxury brands 2024

Little Red Book, also known as Xiaohongshu, is a crucial platform for luxury brands aiming to succeed in the Chinese market for several reasons.

key factors that underscore its importance:

1. Targeted Consumer Base: Little Red Book has a predominantly young, urban, and predominantly female user base that is highly interested in luxury goods, beauty products, and lifestyle trends. These consumers are trend-sensitive and have considerable spending power, making them an ideal audience for luxury brands.
2. Authentic User-Generated Content: The platform is known for its genuine user-generated content and reviews, which lend credibility and authenticity. Luxury brands benefit greatly from this environment as consumers often trust peer recommendations over traditional advertising. When users share positive experiences with luxury products, it bolsters the brand’s image and appeal.
3. Seamless Blend of Content and Commerce: Little Red Book uniquely combines social media and e-commerce functionalities, allowing users to post content and directly link to product pages where viewers can make purchases. This integration makes it an effective sales tool for luxury brands, facilitating a smooth transition from discovery to purchase.
4. Influencer Collaborations and KOLs: Collaborating with Key Opinion Leaders (KOLs) on Little Red Book can significantly amplify a brand’s reach and influence. KOLs can create aspirational content that resonates with their followers, driving both brand awareness and conversions through their trusted endorsements.
5. Market Insights and Consumer Feedback: The platform provides valuable insights into consumer preferences and behaviors. Brands can monitor feedback and discussions about their products, gaining real-time insights into market trends and consumer expectations. This data is invaluable for adapting marketing strategies, product offerings, and customer service practices to better meet the needs of Chinese consumers.

Overview of the luxury sector in China 2024

China is the greatest place for luxury brands, as Chinese consumers are craving luxury goods, checking the trendiest brands and products in the West. In China, luxury shopping is considered a lifestyle, and many Chinese with a growing purchasing power want to spend money on luxury items and services, to show off their wealth.

As you can see on the chart from Statista above, the Chinese luxury market is registering tremendous growth over recent years and is predicted to account for 188 billion dollars in 2025. Although the COVID-19 pandemic slowed China’s economy, China is still aiming to be the world’s largest luxury market, with many new customers joining the sector, as their incomes are growing significantly.

Although the Chinese government is trying to mitigate ostentatious displays of wealth and does everything to convince people to buy from local brands (you can check the latest Guochao trend), consumers are still seeking luxury goods from foreign brands. The difference is, is that apart from competing with top luxury brands around the world, companies now also need to compete with emerging local players.

Who are Chinese luxury consumers? Understand your audience

The number of Chinese consumers that chose luxury products and can afford them is growing. Many luxury shoppers come from China’s growing middle class, which is expected to reach 75% by 2030. One of the most important things luxury brands need to consider is offering affordable luxury goods, that will be attractive to these newcomers to the luxury market in China.

Millennials are the biggest drivers of the global luxury market

The biggest groups of luxury shoppers are Millennials. According to a recent survey, they should account for 40% of global luxury sales in 2024. They represent the largest Chinese consumer group with over 350 million people. Those people go for fashion and jewelry, but they actually help all kinds of industries grow. It’s predicted that they will also be the main driving force of the baby market, so all companies selling toys, skincare products and luxury items for kids have a chance on the market.

Gen Z is next in line

Gen Z is the generation most open to new trends, but they are also the least loyal to brands, looking rather for quality and experience, rather than logos and names. They have different shopping habits than other generations, and they also use different online channels, like Douyin and Xiaohongshu, so you need to be familiar with those if you want to seduce Gen Z. According to McKinsey, the Chinese Gen Z will account for 20% of the total spending growth in China by 2030.

Chinese Gen Z is also more aware of the climate, and environment, they are the first to embrace sustainable fashion, protesting against animal testing and the negative impact of some products on the environment and their health. They are looking to improve the quality of their lives, by buying good quality luxury goods, taking care of their diet, doing sports, and using natural cosmetics.

Chinese independent women

According to customer data in China, women are spending more than ever before (Their annual spending is expected to rise from RMB3.3 trillion in 2017 to RMB8.6 trillion by 2022). They have a high education, and they decide not to have kids and focus on careers, so they earn a lot of money that they are willing to spend on themselves.

Chinese independent women are particularly sensitive to brand reputation and storytelling. Their shopping habits are very similar; they go through social media, recommendations from the community, discussions with friends, content, and products comparison to motivate their purchases.

How to enter China’s luxury market?

The Chinese backlash against local fakes and counterfeits is one of the reasons international luxury offerings are thriving in China. To be a ‘foreign brand’ has become a byword for quality, thus lending itself to such luxury branding and marketing. It’s important to be aware of this context as it also heightens the importance of an intelligent branding strategy on the most effective, targeted platforms to high-net-worth individuals.

Targeted Visibility & Reputation are a luxury brand’s greatest asset

Targeted visibility & reputation are a luxury brand’s greatest asset in a ‘digital-centric’ market. As a luxury brand, you need to build this strong brand reputation by focusing on particular platforms and communities.

A quality website in Mandarin visible on Baidu

It’s not as simple as it sounds to build a great website in China. Avoid the typical Chinese web formats and opt for a sleek, clean-cut aesthetic akin to your pre-existing site. You cannot simply just create a bi-lingual Chinese add-on as it is best to host the site on a local server with a .cn domain. This involves building the site locally, in addition when it comes to visibility on Baidu (China’s Google), the sites need to be a ‘vehicle for visibility’, that is optimized for Mandarin keyword searches. 75% of all online research is conducted via Baidu.

Content should also be re-adapted for this market with local search terms and keywords in mind, this allows you to place your content in front of the most qualified search traffic in the luxury sphere.

Leverage Baidu’s ecosystem to build brands’ reputation

Chinese consumers are extraordinarily active on forums. In Western digital markets they are old news, but in China remain a powerful way of influencing sentiment & building a positive reputation. There are a host of platforms to consider, with the most important being Baidu Zhidao, Baidu Tieba, Zhihu, & Tianya. Consumers are active in threads devoted to luxury products, they will share recommendations, images, shopping experiences, and thoughts on brands.

From exposure on such forums links to those on Baidu, forums rank highly in the search results so it’s vital to cultivate a positive reputation here. Comments, posts & discussions will be seen.

Social media platforms presence is essential when it comes to Chinese luxury consumers

In China, social media are essential for luxury brands because this is where most of the recognition and word-of-mouth marketing comes from. They allow you to promote your brand, engage with potential consumers, follow the trends, and attract the audience with influencer collaborations and interesting content. The most popular platforms among luxury shoppers are WeChat, Weibo, Little Red Book, and Douyin.

Wechat

WeChat now boasts over 1.356 billion monthly active users, a new record for China’s number-one social tool. WeChat is a ‘swiss army knife’ for brands when it comes to pushing content, branding, and engaging with followers.

Data 2024

Wechat allows brands to create Official Accounts, where they can post news and promotional materials and keep in touch with their audience. Apart from that, brands can create mini-programs within the app, where they can show their brand and products in an H5 Brochure, which is an interactive way for companies to present their brands.

On top of that, there is also a possibility to use WeChat as an e-commerce platform, by creating a WeChat Store. In fact, more than 95% of brands available on WeChat have their own stores in the app.

Use Weibo: “China’s Twitter”

Weibo is China’s most ‘open social network’, users can see posts from anyone and do not have to be connected first. Weibo is akin to Twitter, it’s a microblog so focus on short posts, and pages can once again be customized with branded content as a backdrop.

On Weibo, you can promote sales by re-posting consumers’ comments, or by collaborating with influencers, organizing discounts, and so on.

Xiaohongshu is the best app for luxury shoppers

Xiaohongshu is a social e-commerce platform, originally created to allow users to share experiences about products/services bought abroad. Xiaohongshu targets Millennial women from first to third tiers cities, interested in luxury foreign brands. It is, therefore, a very useful platform for high-end/luxury brands that is willing to launch their products on the Chinese market.

Moreover, the main advantage of it is that it lays on UGC (user-generated content) meaning that this platform is considered a very reliable platform for getting information prior to purchasing a product.

Key Opinion Leaders (KOL’s)

KOLs, which are Chinese influencers, are all the rage currently, and for good reason. They offer a powerful infrastructure for luxury to reach Chinese consumers. The key is to target the right KOLs that reach the high-net-worth demographic, it’s a case of focused exposure.

Key Opinion Leaders are usually specialists in their niche markets, like skincare, jewelry, parenting, fashion, etc. They can help you reach a bigger audience for your products while working as ‘word-of-mouth’ marketing, convincing their followers about products they use by posting photos, and videos or engaging in live-streaming sessions.

Key Opinion Leaders are the best marketing tool when it comes to luxury goods, especially when targeting Millennials and Gen Z. 

Cross Border E-Commerce For Luxury Brands

Alibaba’s flagship e-commerce platform Tmall is reserved only the for most successful players, 85% of brands are rejected from Tmall, Why? Because Tmall tends to select brands that already have a large following, a strong image, a reputation, and significant sales evidence from China. Jingdong (JD) is not dissimilar to a strict application procedure.

The end goal for luxury is to open e-commerce online stores on Tmall & JD as these are the most reputable cross-border platforms. The budget must also be in place for the more expensive setup and associated costs, as well as offline stores in the future, which is usually the biggest challenge.

The alternative route for new luxury products in China is to build up to these largest e-commerce displays on more niche, yet highly valued e-commerce platforms such as WeChat Stores, Little Red Book, Hupu, T Global E-Luxury & more.

In addition, you can follow the following steps to start selling online without such a huge outlay that still yields a significant return on investment. Validation of your luxury concept in this marketplace should be a priority.

Need help entering China’s luxury market?

Contact us!

It’s important to understand your target consumer and how they behave online in a very different digital sphere. Online sales are the priority however click-through rates, impressions, and views all amount to establishing a brand that can sell well to local consumers, this does not happen overnight & requires intelligent strategy.

We are a China marketing agency with over 10 years of experience. We worked with many luxury brands over the years, so we have the experience and specific know-how needed in the industry.

GMA
We help companies wishing to sell on the Chinese market. We are specialists in:

E-REPUTATION: Primordial before launching, we work together on your unique selling point, then on the social networks, and with the help of PR, we make sure that your image on the networks is totally clean and reliable for the Chinese users.

Website – Search: The optimization of your referencing will be essential, our team of specialists will take care of your e-reputation, and the management of your social networks while setting up an SEO / SEM campaign allowing you to gain places in the ranking of the Baidu Chinese search engine and wechat search

ECOMMERCE: Our teams are professionals in ecommerce. To optimize it, your e-reputation must be irreproachable. Investing in online advertising and creating quality content will help you develop your e-commerce.

DIGITAL SOLUTIONS: Website creation, development, and audit; social media marketing (including WeChat & Weibo); PR; monthly reports and analyses by our team of experts.

And if it was you clearly haven’t watched Crazy Rich Asians!

According to Bain & Company, the Chinese should account for around half of the worldwide luxury consumption in 2025. China is evolving fast; and even the lower-tier cities are booming.

The potential audience for the luxury sector became even wider and you have to understand the preferences, habits, and expectations of Chinese luxury consumers.

Quick Summary

• Rapid Growth of China’s Luxury Market: China is projected to account for about half of the worldwide luxury consumption by 2025, driven by its fast-evolving economy, the rise of the middle class, and booming lower-tier cities.
• Middle-Class Expansion: China’s middle class, which represented 57% of the economy in 2015, is expected to reach 75% by 2030, indicating a growing audience for luxury goods, particularly in fashion and jewelry.
• Rise of Lower-Tier Cities: Economic growth has led to the development of lower-tier cities, where Gen Z’s high disposable income is contributing significantly to the luxury market through social marketplaces and e-commerce platforms.
• Online and Offline Shopping Integration: The concept of “New Retail” in China highlights the interdependence of online and offline shopping, with 80% of Chinese consumers preferring to buy luxury goods online.
• Emergence of Local Chinese Luxury Brands: Local brands are increasingly competing in the luxury market, leveraging their deep understanding of Chinese consumers and cultural nuances.
• Increasing Wealth and Luxury Lifestyle: With China ranking second in the billionaires count, there’s a significant increase in wealth, leading to a quest for luxury lifestyles that symbolize prestige, social status, and accumulated wealth.
• Focus on Women and Millennials: Empowered and independent Chinese women, along with Millennials, are key segments driving luxury consumption, emphasizing the need for brands to engage with these demographics through social media and community recommendations.
• Gen Z’s Influence: Generation Z, open to new trends and shopping habits, is changing the face of luxury consumption with their concerns for sustainability and social impact.
• Profitable Luxury Sectors: The most profitable luxury sectors in China include fashion, bags & leather goods, jewelry & watches, fragrances & cosmetics, premium wines & spirits, luxury cars & yachts, and luxury tourism.
• Marketing Strategies for Success: To succeed in China’s luxury market, brands need to focus on strong branding, localized marketing campaigns, and building a positive e-reputation, catering to the unique preferences and cultural sensitivities of Chinese consumers.

China is the Best Country to Sell Luxury Goods 

In the Western mind, China is a land of opportunities. People are looking for the trendiest brand in Europe, the last best-selling luxury bag, and the last trend to catch on. In China, the figures are totally crazy and overpass anyone’s dream.

A shift in luxury consumption habits in China

Since the majority of luxury sales will be generated in China in the coming years, luxury brands are taking care of their Chinese consumers. Today, luxury brands cannot neglect their Asian audience if they want to maintain growth. During the Covid-19 pandemic, many brands from the luxury sector maintained sales thanks to Chinese luxury consumers. 

How do Chinese consumers purchase then? Chinese luxury consumers used to travel a lot to benefit from low taxes in duty-free shops and unique client service. Due to Covid-19 international travel restrictions, they switched from overseas purchases to domestic purchases.

Any luxury brand looking to perform in China needs to seduce and attract Chinese consumers there. To do so, it is essential to understand Chinese culture and national pride.

China’s middle-class expansion

Chinese customers who can afford luxury products are growing. In 2015, China’s middle class represented 57% of the economy, which was already more than half. They are expected to reach 75% by 2030. These figures indicate that there will be no slowdown in this market as the Chinese avidly embrace a new lifestyle and new consumption habits.

According to a recent survey, the majority of Chinese luxury consumers are going to favor fashion and jewelry over leather goods or bags. These two categories will drive the expansion and growth rate of the personal luxury goods market in China.

More and more Chinese consumers will show interest in the luxury sector and affordable luxury goods market, as their purchasing power is growing. Having a low-price entry point in a luxury assortment is key to targeting these newcomers with disposable income in the luxury market. It is essential to target, seduce, and engage with them to build a strong audience in the future.

The rise of Chinese lower-tier cities

Constant economic growth favored the development of lower-tier cities in China. Luxury brands used to head towards Shanghai, Beijing, Guangzhou, etc… The first-tier cities were swamped by luxury online and offline stores, popups, and events. While the lower-tier cities were taken out of the picture with limited access to luxury brands and luxury products unless they travel to Shanghai or Beijing.

Gen Z from Tier 2, 3, and 4 cities will contribute a lot to the luxury market through social marketplaces and e-commerce platforms. Young people in these lower-tier cities are often the only child in their families and benefit from a high revenue to upgrade their consumption of luxury products. 

Combination of online and offline shopping

Digital is everywhere in China. Alibaba Group even created the term “New Retail” to designate how online and offline are becoming interdependent to offer a unique experience to Chinese consumers. Only 4% of Chinese e-commerce customers will have an “offline only” purchasing journey.

Basically, they search for information online, interact with the luxury brand through social media and purchase the product online or offline. The Chinese Gen Z favours integrated e-commerce platforms and online channels to do their shopping. 

Today, 80% of the Chinese consumers prefer to buy online when it comes to luxury goods market. All the luxury brands understood this well and decided to set up online flagship stores, live streaming sessions, online and offline events, gaming, etc. The boundaries do not exist anymore between you and your client in Asia.  

Chinese Luxury Consumers: an Opportunity for International Brands

There are more and more local Chinese luxury brands emerging across different categories to take on China’s luxury market. What is their main asset? They know everything about China and the Chinese luxury shoppers. They have figured everything out while international brands are still trying to get it right. 

Fast growing wealth

China is the second country in the billionaires ranking, accounting for 607 billionaires, right after US with 735 billionaires. When we talk about an increase in wealth among Chinese people, we do not talk about a couple of RMB, we talk about hundreds or thousands of dollars that are ready to be spent on luxury goods.

According to Equité, 400 million additional Chinese will have the means to purchase personal luxury goods in the next 20 years. This evolution is key for luxury brands. It is more than the total population of the US, having all the financial stability to drive luxury consumption growth in each and every category. 

Quest for a luxury lifestyle to “show off”

In China, the cultural concept of “Mianzi” is essential to understanding the consumption of personal luxury goods. The term mianzi literally means “face”. In other words, it is essential for any Chinese to keep his/her face and his/her honour in any situation (you are also supposed to be giving face). This is tightly linked to reputation and prestige in Asia.

Purchasing luxury goods is a symbol of prestige, social status and accumulated wealth. The more you take care of your appearance and lifestyle, the more you show to the world you succeeded.

In the coming years, we should see a shift from a way to show off to personal pleasure. The purchasing factors for the Chinese luxury consumers are now well-being, happiness, and experience. They will probably no longer want to own a luxury item for the sake of it but look for a unique experience and social impact.  

Target empowered and independents women

Chinese women are spending more than ever before. They represent a significant segment of luxury consumption. The main structural change that occurred is the higher education and greater participation of Chinese women in the workforce in recent years.

Today, they have the financial autonomy to support their purchasing power. By comparison, more than half (56%) of women completed secondary school compared to 46% of men. For the luxury goods market, the modern Chinese woman is key to making the luxury consumption growth rate rocket.

Chinese independent women are particularly sensitive to brand reputation and storytelling. Their shopping habits are very similar; they go through social media, recommendations from the community, discussions with friends, content, and products comparison to motivate their purchases.

But reputation is different from mass recognition. They are looking for niche brands with distinctive styles rather than global giants to act like everyone else. Understand your target and make a difference. 

Engage with Chinese Millenials

Born between 1980 – 1995, Millennials are the leading force in the luxury goods market in China. According to a recent survey, they should account for 40% of global luxury sales by 2024. They represent the largest Chinese consumer group with over 350 million people. Millennials are driving the digital explosion in China through live streaming and disruptive content. 

Chinese Millennials are sensitive to luxury brands’ content and experience. They expect inspiring stories and insightful official accounts to engage with. International brands often make the mistake to use their social media to sell and collect customer data rather than to engage in discussion.

Millennials rely on community recommendations and word-of-mouth. They will always favour a retail brand they can interact with over a sophisticated luxury goods brand that remains distant. Any luxury brand should favour WeChat, Weibo, Little Red Book, Douyin, live streaming, and mobile games to engage with Chinese Millennials.  

Seduce the Chinese Gen Z

Born between 1996 – 2010, Generation Z is the generation most open to new trends and shopping habits coming from Europe and the US. They are always looking for new, disruptive, and imported luxury goods. With new concerns and expectations after the pandemic, Gen Z is changing the face of luxury consumption. They are the first group to stand out against animal testing, fur, negative impact on the environment etc.

According to McKinsey, the Chinese Gen Z will account for 20% of the total spending growth in China by 2030. It is essential for luxury companies to understand their opinions and expectations to avoid any backlash.

They love to discover new luxury brands, try new products, and purchase the same luxury goods as celebrities and KOLs. The best strategy to target the Chinese Gen Z is to select KOLs and KOCs to promote your brand to Chinese luxury consumers.

What are the Most Profitable Luxury Sectors in China?

In the world of luxury goods, each segment is facing its own opportunities and challenges. Each luxury sector is thriving with a strong growth rate and solid customer base.

The luxury fashion market in China

In China, the annual revenue of luxury fashion reached 10.54 billion USD in 2023 and is expected to grow up to 13.31 billion USD by 2028. The annual growth rate of the market is expected to be +6% for the coming years.

In 2023, the face of luxury fashion will evolve. China is entering the era of secondhand with dedicated mobile apps like Plum and influencers’ endorsements. The top KOL Viya shared with her community her last purchase of a secondhand luxury bag saying, “who will see the difference between a brand new Louis Vuitton bag and a secondhand one”.

Chinese Gen Z and Millennials are more sensitive to the impact of the fashion industry on the planet and look after new shopping habits. Secondhand is definitely a trend to watch.

Today, people want to differentiate by their consumption. For the average Chinese luxury shopper, purchasing a Chanel tweed jacket is not enough to differentiate from 1.4 billion people anymore. You need to have a unique style and be ahead of trends. The key is now to “mix and match” their style by incorporating fashion into luxury, which explains the success of Off White in China. 

Luxury bags & leather goods

The annual revenue of luxury leather goods in China is expected to reach 9 billion USD in 2023. The market is expected to grow by an annual rate of 7%. The top 5 bags and leather goods brands are Hermès, Chanel, Louis Vuitton, Gucci, and Dior.

By far, Hermès has the most important brand awareness for the leather goods category. This is mainly due to the unique item design and brand reputation in China. For Chinese consumers, design and materials are the main information they are interested in, but design and brand will finally affect their decision. 

68% of Chinese shoppers purchase at least a handbag once a season. Even 36% purchase a new bag per season. You definitely need to anticipate the tastes and expectations of Chinese handbag lovers to seduce and engage with them.

In the meantime, you definitely need to look after the trend of Chinese nicknames. Especially for bags and cosmetics, the Chinese give nicknames based on pop culture, translation, or overall design to talk about a specific item.

The majority of Chinese can encounter difficulties saying an international name. So, they come up with the original nicknames on Weibo or WeChat. For instance, the famous Longchamp bag called “Le Pliage” is named “The Dumpling Bag” in China. Any luxury brand needs to stay aware of these Chinese cultural habits and could turn this trend into a key marketing strategy.

China’s jewellery & watches market

In China, the annual revenue of luxury jewellery and watches should reach almost 24.5 billion USD in 2023. The annual growth is expected to reach 6% and most revenue will be generated in China in the coming year. The opportunities for the luxury jewellery sector are huge.

The market is dominated by luxury giants like Cartier, Chanel, Tiffany & Co, Dior, and Bvlgari. Chinese are sensitive to craftsmanship, material, design, and brand when they look for jewellery. In a word, storytelling is everything when you want to build your jewellery brand in China. 

In 2023, the success of gold and diamond among the Chinese is still accurate. In the coming months and years, we should see a soaring success of rose gold over white gold and yellow gold. The new trendsetters are younger consumers and especially post-1980s consumers who contributed to 80% of China’s diamond sales a couple of years ago.

For the coming year, it is important to stand ahead of trends since the market is evolving fast. Luxury jewellery is moving towards a gender-fluid approach. Chinese are looking for diversification and men often complain about the lack of finesse and sophistication in male jewellery. The available items often include rapper chains, cufflinks, belt buckles, and gothic rings.

Luxury watches in China

Chinese have a great taste for materials and are always looking for unique designs. Today, the top brands with higher brand awareness in China are Rolex, Cartier, Omega, Longines, and Bvlgari.

Most Chinese prefer to purchase Swiss luxury watch brands since it is proof of quality for them. Craftmanship, brand, and design are the most important criteria before purchasing a luxury watch. Chinese will always favor a simple everyday watch compared to an overly complicated design with tons of jewels. 

In 2023, the keyword for jewellery watches is timeless. Luxury brands need to embrace Chinese preferences for elegance over time. Indeed, 50% of people wear a watch to bring out their personal taste and image. It is not about convenience, but about social status. In such a case, the branding will be as important as the design since brands will need to prove to their Chinese consumers they discover a timeless piece. But in China, timeless does not mean boring.

In the meantime, the Chinese will look for watches that embed Chinese elements in the design or limited edition in partnership with local influencers. The limited-edition L.U.C QF Jubilee proposed by Chopard in April 2021 was only counting 25 models. Such a limited production is key to seducing and engaging with Chinese luxury shoppers who could sell it out in only a couple of minutes. 

High-end fragrances & cosmetics

In China, luxury cosmetics and fragrances should reach annual revenue of 8.5 billion USD in 2023. The expected annual growth rate of the category is about 8% for the coming years.

Makeup and skincare are the best-selling categories among cosmetics. For a brand looking for selling opportunities in China, it is necessary to favour floral and light scents. Today, the top best-known cosmetics brands in China are Chanel, Estée Lauder, Dior, Lancôme, and Shiseido. Chinese consumers give importance to effects and ingredients over any other criteria.  

In 2023, clean beauty is the leading trend of the market in China. Chinese women are more environmentally and health-conscious. They will avoid animal testing on cosmetics and dirty components. Today, 90% of Chinese expressed the importance to purchase clean or healthy beauty products. It is driven by Millennials and Gen Z who assess the value of plant-based skincare and are more open-minded to international beauty standards. 

The same evolution is taking place in the makeup segment since Chinese men are more and more interested in putting some make-up on. The luxury brand Chanel noticed the opportunity and decided to launch the franchise BOY including lotion, cream, eyebrows pencil, mascara, and nail polish. Stay up to date, be bold and dare disruptive campaigns to talk to Chinese consumers. In cosmetics, sustainability and inclusivity are key. 

Premium wines & spirits

In China, the spirits market should reach annual revenue of 341.55 billion USD in 2023. For the Chinese, the main wine and spirits brands are Rémy martin, Moutai, Wuliang Yi, Louis XIII, and Hennessy.

The majority of Hong Kong consumers would prefer to purchase premium red wine while Mainland China consumers favour premium whiskey. Chinese will always favour the taste, the brand, and the limited edition before purchasing a wine or spirit bottle. Before purchasing these items, they will look after information and recommendation from friends with similar interests. WeChat private groups are particularly important for Chinese who want to get access to the best-imported wines. 

Chinese are more educated about wine-tasting since wine bars or “bar à vins” are opening in Tier Cities 1 and 2. In Hangzhou, you can enter a wine bar to taste different imported wines and participate in special tasting nights. Today, distributors are very tough, and margins are decreasing.

The key is to invest in branding and storytelling. More than ever before, luxury brands share the story of their castle, broadcast videos of founders, and propose beautiful pictures of vineyards. The competition is tough, and brands are even more innovative. Fancy Cellar launched a video game called “Drink different – Drink Smart” to make wine more appealing and fun while educating Chinese consumers.  

Luxury cars & yachts

In China, luxury is essential to show off. Having a car or a yacht is a symbol of social status and personal success. In the West, you demonstrate your success by taking cabs or having a personal driver who has his own car. In China, you are successful if you have the financial capacity to purchase your own car, especially a luxury car.

The wealthiest Chinese will purchase their own luxury car and hire a personal driver. Even during the Covid-19 pandemic, luxury vehicles rebounded strongly in China. Local consumers always favour German brands and now turn more and more into luxury electric cars. Work on your branding and create high-quality content to seduce Chinese wealthy men and women. 

When it comes to luxury yachts, the market is more problematic. There are no large marina slips in Mainland China, and a lucky owner of a yacht will need to dock it in Hong Kong, Singapore, or Thailand.

The Chinese government restrictions are extremely strict regarding yachts since they created a limitation of 12 people aboard a yacht, including the crew. Basically, the Chinese will face more drawbacks than benefits by acquiring a yacht. Luxury yachts brands who want to target the Chinese should attract them and offer them yachts tours while they travel abroad. 

Luxury tourism

When the Chinese are travelling abroad, they tend to favour luxury and upscale hotels. The majority of Chinese do not have sufficient wealth to afford a journey abroad. When Chinese luxury lovers travel abroad, they always book their leisure trips through Ctrip, Qunar, or Booking. Luxury brands who want to market their luxury offer from hotels to trips should definitely invest in Trip promotion and advertising. 

In January 2023, China finally reopened after almost 3 years of closed borders. Chinese tourists are slowly coming back, so it’s time to adapt to the new type of travellers. Today, they prefer smaller groups and more personalised trips, having in mind unique experiences and outdoor activities.

How to Market Your Luxury Brand in China

China is evolving fast, which is the biggest challenge for foreign companies. You need to stay up-to-date with trends and innovations if you do not want to be left behind. The moment you decide to enter the Chinese market, a dozen of other premium and top luxury brands have already entered it. So it’s important to do it right!

To sell luxury goods in China there is a need for strong branding

In China when we talk about your “branding” we talk about your brand image. Even if you benefit from small notoriety in your home country or internationally, people in China do not necessarily know who you are. Chinese netizens do not use Google, Facebook, Instagram, or Twitter. They do not have access to your existing content and advertising campaign. Basically, when you want to enter China, you have to start again… from scratch. 

To do so, it is essential to have quality content. Chinese are sensitive to premium photography and video. Every day, they get access to tons of high-quality content. Your content definitely needs to be appealing and stand out from the crowd.

We often recommend doing some additional shooting to boost your publications on Chinese social media or on your Chinese website. For leading brands, a step further would be to integrate Chinese and Asian models in your photoshoot to enable the Chinese to identify themselves with your brand. 

Localize your marketing campaigns for the Chinese market

The campaign localization is key in China. It is essential to understand the Chinese culture and aesthetics to avoid any “faux pas”. A bad buzz can happen fast in China if you do not play by the rules. It does not mean you have to spread your image out and remove your specificities. It just means you need to know and respect the local values, culture, and expectations. 

The most interesting example in last years was given by Burberry. The luxury brand localized well its campaign by creating clothes for the video game Honor of Kings. In brief, these are the most profitable online games of all time, and virtual clothes contribute in a large part to luxury brands’ sales. This strategy is key if you want to target young and wealthy Chinese through the digital world.

Burberry signed a partnership with Tencent to be embodied in Honor of Kings. In the meantime, the brand declared it is no longer using cotton from the Chinese Xinjiang where Uyghurs are and supports the “Better Cotton Initiative”. Burberry learned at its expense that cultural sensitivity also applies to the virtual world. All the clothes from this brand are removed from the online game and Tencent suspended their partnership. 

If you know a little about China, you should have noticed that what is happening to Burberry is a double penalty. Why? Because Tencent also owns QQ, WeChat, and Weibo. The leaders of social media and online Q&A in China.

Focus on building a positive e-reputation on the Chinese Internet

When we say that your reputation precedes you, it is even more true in China. It is vital to develop your online reputation on forums, blogs, and Q&A sessions to instil trust among your potential customers. They always go on this type of platform to look for testimonials, references, and topics linked to recommendations.

The main two threats that your brand should fear are having negative comments or no comments. In China, having no existence is as worst as having a bad reputation. And you need to take care of that. 

It is essential to work on your community management by posting regular content about your brand and controlling the online comments. You need to post massive positive comments and manage any potential negative comments about your product.

In China, as we mentioned, you will enter the most competitive market in the world and the competition is fierce. Your local competitors will not hesitate to post negative comments or posts about your products to take back their market share. You should better have a local partner to monitor and control your online reputation on a daily basis. 

Gain exposure through Chinese social media

In China, social media are essential to target, reach, and engage with potential customers. You will have tons of possibilities to create interaction and instil a sense of belonging among Chinese who will discover your brand.

The most popular platforms among luxury shoppers are WeChat, Weibo, Little Red Book, and Douyin. They are at the centre of luxury brands’ marketing strategies to gain visibility and develop a closer relationship with their local followers. 

WeChat is a great communication channel for luxury brands in China

With 1.26 billion users, WeChat is the most used social media platform. Every Chinese has a WeChat account. It is key to be and stay connected with everyone: family, friends, colleagues, clients, suppliers, and brands.

For a better understanding, we often compare WeChat to a mix of WhatsApp and Facebook. Basically, the only difference is you can do anything with your WeChat account. You can send messages, have called, pay for products, read news, book train tickets, order a cab, post content, and follow brands. 

Compared to other social media, WeChat is a very private social media. For luxury brands, it is key to develop great interactions and a deeper sense of belonging. Why? Because brands need to search for your brand to connect with you and see your content. Every follower you gain on WeChat is gold because they made the decision to search for you and engage with you. 

Weibo: perfect for increased visibility

Weibo is the second most used social media in China with 580 monthly active users. Weibo is popular among Chinese Millennials and Gen Z because it is the best place to express themselves. They share their thoughts, pictures, and visions. It is often compared to Facebook and Twitter because people do not fear that much censorship on social media.

This platform is essential for luxury brands not only because they will have freedom of publication but because 82% of Weibo users purchase online. In a word, you will maximize your e-commerce stores or online distributors. 

We often recommend the opening of a Weibo official account when you open a Tmall flagship store. It is a great drive-to-store strategy to increase your traffic and sales. The main asset of Weibo after the pandemic is the strong development of live streaming sessions. In 2020, Weibo recorded a +50% increase in live streaming sessions on its platform. 

Little Red Book: The Chinese social media luxury fashion and cosmetic brands

Little Red Book is the literal translation of Xiaohongshu. It is considered to be the Chinese Instagram with the regular quality content posted and the influence of key opinion leaders and influencers on the platform. This social media benefits from a lower user base but a better-targeted audience.

On average, there are more than 200 million monthly active users. Among them, 50% are from Generation Z. From what we said previously, Gen Z is the leading force of luxury in China and you definitely need to link into RED if you want to target them effectively. 

The other great asset of Little Red Book is the gender user base since more than 80% of the users are women. This information is gold for women’s fashion, cosmetics, and women’s jewellery brands that want to reach Chinese women.

If you want to perform on this social media you need to post quality content, share fans’ posts, engage with KOLs, and open a Little Red Book store. There are tons of results-driven features you need to look into before opening and managing your RED account. 

Connect with Gen Z, the main luxury consumers segment on Douyin

Douyin is the first video platform in China. Basically, if you know TikTok you know Douyin since it is only the Chinese given to the same platform. On average there are 800 million monthly active users and 600 million daily active users.

Especially due to the pandemic, short-form video platforms faced immense success among Millennials and Gen Z with even older users in China. The daily active users increased by +200% in only 2 years. This growth is essential to keep in mind when you want to digitally perform in China. 

Chinese people always favour short and insightful content over long-form videos. They watch videos during transportation or while they are waiting in line. Brands decided to take advantage of these habits to target the Chinese with dense short-form videos that will remain in people’s minds.

Luxury brands benefit from the double asset of promoting their products easily and making them accessible to their audience. In March 2021, Douyin launched store features to enable brands to open their own stores on social media. More than 220 brands are already registered including the premium cosmetics brand Perfect Diary. 

Luxury brands should collaborate with Chinese KOLs

Key Opinion Leaders (KOLs) are extremely important in China. They set trends and drive traffic to brands’ stores. Fashion, cosmetics, and jewellery are the two main categories in which KOLs will have the highest level of influence. But in any category, you will have your own leading KOL who has the power to increase your conversion rate and double your sales within minutes.

For the bags and leather goods, you definitely need to link into Mr Bags who generated 460K USD in only 6 minutes for the brand Tods. For cosmetics, you need to take a look at Lipstick King, who can try 380 lipstick shades during a live streaming session and can decide whether a shade will be sold out or a bad buzz. 

By order of importance, Weibo, Little Red Book, Douyin, and WeChat are the key social media platforms for KOL endorsement. 60% of Chinese go on Weibo to obtain recommendations from KOLs or bloggers. If you want to reach a wider audience and increase your conversion rate, you definitely need to invest in KOL or KOC. From small influencers to celebrities, you can give a unique aura to your brand in China.

Luxury and e-commerce are tightly linked in China

In China, e-commerce is the quintessence of business. If you have ambition for your brand, you definitely need to open a store on e-commerce platforms like Tmall or Jingdong to generate higher sales. These two platforms only accept high-quality brands with a good image and a positive reputation.

In China, the e-commerce decision is not only yours, but platforms will also decide whether they want to sell your products and make you appear on their website. If you want to get ahead, you need to show sales opportunities and the brand’s success. 

Tmall & Tmall Luxury Pavillion

Tmall is the first go-to e-commerce platform for luxury brands in China. This is the most performant platform for luxury and premium brands that want to offer a unique consumer experience through digital features.

There are 780 million consumers in China who purchase through Tmall, and the number of new overseas brands joining Tmall Global increased by 64% year on year in 2020. All the luxury and international brands get to know this e-commerce leader and do not want to miss the opportunity to generate tons of sales, especially for key shopping dates like Chinese New Year or 11.11. 

Brands have access to Tmall, Tmall Global, and even Tmall Luxury Pavilion. This pavilion is an “app within an app” that enables top selected clients to get access to the most premium and luxury brands with dedicated flagship stores and unique experiences including AI and AR. For instance, Estée Lauder used Augmented Reality (AR) on Tmall and the Chinese spent 70 seconds instead of 30 seconds on their product pages per visit. 

Tmall is key for luxury brands who have ambition in the Chinese market. With strong branding and advertising, you can generate millions of sales and level up your brand. 

JD.com welcomes luxury and high-end brands

Luxury brands also use Jingdong or JD.com since it is the most trustworthy e-commerce platform in China. On average, luxury brands will be available on Tmall only or on Tmall and JD depending on their size and marketing strategy.

Compared to Tmall, JD is more pertinent for brands’ in-home appliances and technology devices. The luxury brands like Prada that decided to go along with JD in addition to Tmall are playing an “image strategy” rather than a “sales strategy”. They want to show their striking force on the Chinese market by taking over all the e-commerce platforms of the country. 

If you want to enter JD, you will also have to prove your brand awareness and potential sales in China. You will manage your store and advertise with key drive-to-store strategies. 

China is a complex ecosystem mixing word-of-mouth, reputation, social media, influence, and e-commerce. If you want to enter the first market in the world, you need to be prepared. To do so, you need to build a local team in China to help you through all these operations or select the local agency with the most expertise and results. 

About us: The Best Mareting Agency for Luxury Brands in China

Finding the right partner before entering China is key. We are a specialist agency with almost 10 years of experience in the development of fashion and luxury brands in China. We worked with a lot of international brands to help them build their brand, develop their audience, and double their sales. At Gentlemen Marketing Agency, we fight for cost-effective strategies to achieve great results. 

How can we help you grow your Luxury Brand in China?

Our focus is to promote your brand with your target and objectives closely in mind. We will hold several meetings with you to understand your history and potential for the Chinese market. Then, we will manage the campaign and assure its optimization and success. In a word, you have found your local partner to achieve your growth in China. 

An International Team

We are a team of Chinese and foreign experts passionate about digital and China. Each member of the team is specialized in a field (design, web development, business analyst, etc.) with a long experience and proven efficiency. We benefit from a multicultural background. This is our key success factor: we understand the Chinese culture and consumers while we respect your international brand DNA.  

An ROI focused Agency

The commitment to success and results is essential. We are a results-oriented agency, which means we thrive for success. We are committed to the results we will achieve for you in the most competitive, dynamic, and challenging market in the world. The solution is to seduce, attract, and re-target the most qualified audience for your brand to increase your conversion rate. 

Professionals of Branding & eCommerce in China

We are professionals in branding and e-commerce. We guide you through your journey in China by taking care of all your operations: website, social media, community management, KOL, PR, undercover marketing, e-commerce setup, customer service, etc. In a word, you are not our client but our partner. We always build long-term relationships to achieve success.

Bonus…

We are a friendly team, we offer coffee if you book a meeting with our consultants to discuss your project in China. We have already worked on fashion, jewelry, watch, wine, and tons of luxury projects. If you’re interested in being part of the Chinese market and want to reach your Chinese target, you need to adopt the most intelligent strategy. 

Our luxury division is directed by an LVMH former talent. She worked for the two luxury Houses of Givenchy and Guerlain and will provide you with the best insights on luxury strategy and operations to implement. Our dedicated team can offer a China digital strategy adapted to your brand universe, products, and target. Don’t hesitate to reach out for more information. 

Are you ambitious enough to enter the first market in the world for luxury? We can help you achieve your goal!

Over the years we’ve worked with many luxury brands, introducing them to the world’s largest luxury goods market and making their brands grow. We provide many services that are suitable for companies of all industries.

If you’re interested in getting to know your possibilities on the Chinese market, leave us a comment or contact us to discuss your project!

This insightful blog post will take you on an interesting ride showing how Louis Vuitton penetrated China’s market successfully. Brace yourself; by diving deeper into our story, we stand to uncover some indulging secrets of the fascinating luxury world in China!

Key Takeaways

• Louis Vuitton is a big hit in China. They have lots of stores and plan to open even more.
• Young Chinese people love this brand! They like the fancy look and top quality.
• The brand uses clever ways to sell its goods. This includes fun ads, social media chats, and partnering with popular stars.
• Prices for their items are going up in China but people still buy them!
• Even though other brands are there too, Louis Vuitton stays at the top by knowing what customers want.

Brief History of Louis Vuitton

Louis Vuitton first set up shop in 1854. He started his work as a trunk-maker in Paris. His unique and high-quality trunks caught the attention of people all over the city. This helped him turn Louis Vuitton into a respected brand name.

Then, his son Georges Vuitton took the company to new heights during his time leading it. In 1918, they made their big move outside France and opened their store in Japan. They kept growing strong for many years after that too! The year 1992 was an important one because this is when LV came to China’s market.

Now, people know them as “LV” in China and love them for their style!

Importance of the Chinese Market for Luxury Brands

China is the big jackpot for luxury brands like Louis Vuitton. Here’s why: growth chances are high in this market. Many young Chinese people love designer labels such as ours. Owning our items lifts their status in society, it’s a win-win! Now here’s an eye-opener.

Using elements from China in design and marketing works wonders for us here too! Relationships with shoppers increase sales and make more money for the brand. Fact check: Experts say that Chinese luxury spending will grow 7% each year! So, it’s clear to see how important smart advertising can be when selling top-tier goods like ours in China.

Through great ideas, we could thrive better than others out there.

Louis Vuitton’s Presence in China

Over time, Louis Vuitton has significantly expanded its presence in China by opening more stores in major cities. The brand strategically raised its prices in the Chinese market as a business tactic to further defy its luxury status.

The brand precisely tailored its products for young Chinese consumers, which allows it to stand out amongst other competitive luxury brands. Lastly, the enduring popularity and excellent positioning of Louis Vuitton have highly contributed to its large share in China’s booming luxury fashion market.

Expansion of Stores in China

Louis Vuitton is growing big in China. Here is how:

• The brand started out in five-star hotels like the Peninsula in Beijing and the Hilton in Chengdu.
• It then moved on to open more shops in city spaces.
• Now, it has locations all over China’s big cities.
• Each store offers high-end goods for shoppers looking for quality.
• The prices are higher here than in other places.
• But that didn’t stop the consumers from shopping, showing their love for luxury fashion.
• The brand also plans to grow even bigger with a new kind of store – the duty-free shop.
• This first one may be on Hainan island, which is famous for tourism.

Opening of New Locations in Major Cities

I’ve been tracking Louis Vuitton’s growth across China. Let me share it with you.

1. Back in 2015, they opened a grand site. Making their mark in Beijing, they set up a Maison at China World Mall on February 5.
2. Fast forward to 2022, and even more locations showed up. One is at Taiyang Taikoo Li in Chengdu and the other stands tall at The Mixc in Fuzhou.
3. Not to forget, Chengdu didn’t just get a store. A bonus came – Louis Vuitton’s very first restaurant in China was added here!
4. Right in the heart of Sino-Ocean Taikoo Li shopping mall sits the restaurant. It’s housed within the freshly-opened Louis Vuitton Chengdu Maison, adding to its pull for customers.
5. But wait, Chengdu isn’t carrying all milestone moments alone! Over at Plaza 66 center in Shanghai rises Louis Vuitton’s biggest Chinese flagship store yet.

What makes this expansion exciting? Well, consider this fact: Chinese consumers love Louis Vuitton! They’re now the largest customer base ever! It promises so much ahead as we watch Yue Taiyang Taikoo Li turn into a favorite spot for fashion folks on their travels.

Increase in Prices in China

Louis Vuitton is adding more cost to its goods in China. They plan a big price jump of up to 20% soon. The prices are shooting up fast too. In the past year, costs went up by 4%.

You may wonder why Louis Vuitton’s goods cost much more in Shanghai than in Paris! Goods are about 35% pricier there, but many people still buy them.

Online, people search to know when the next price increase will come. Despite high costs and more expected rises, Chinese consumers still want these luxury goods.

Target Demographics in China

Louis Vuitton is going after young shoppers in China. It is the number one luxury brand there because it knows its target audience well. A big part of its success comes from reading customer tastes and understanding what they want.

Youngsters in China love to shop at fancy places when traveling overseas, and Louis Vuitton often tops their list. As a result, the Chinese have become their largest customer base ever!

Customization of Products for the Chinese Market

Louis Vuitton makes special items for Chinese buyers. They create pieces that have parts of China’s story in them. This helps the brand feel closer to its fans in China. It also shows their love for Chinese arts and ideas.

Tailoring goods to fit the tastes of local people is key too. Louis Vuitton thinks about what things are popular in China before they make anything new. And, making a product just right can take time! But this means each piece ends up with its own unique flavor that fits perfectly within the culture it was made for.

Comparison with other luxury brands in China

As a marketing manager, it’s crucial to compare Louis Vuitton’s position with other luxury brands in China. Let’s take a look at some key aspects:

Clearly, each luxury brand has its unique strengths and appeal in the Chinese market. As a marketing manager, understanding these nuances can help tailor strategies to maximize brand impact and resonance with target consumers.

Cultural and Social Impact

Influence of Chinese Culture on Louis Vuitton’s Designs and Marketing

Louis Vuitton’s marketing is a great mix. It combines fashion with Chinese culture, using both in its designs and ads. The key? Young shoppers love it! They feel connected to the brand because they see elements of their own culture in its products.

Social media plays a big part as well. Louis Vuitton uses popular platforms to reach out to its customers. This way, people learn about the brand and what sets it apart from others.

Louis Vuitton uses China’s favorite platforms like Xiaohongshu, Douyin, Weibo, and WeChat. They show off new items there and talk with fans too. This helps give a secure footing in the market.

The brand is doing well in China compared to some other brands like Chanel which are hard to reach out to or find for many Chinese people.

Celebrity Endorsements and Collaborations in China

In China, they picked Gong Jun as their brand icon. He’s well-known and his star power boosts both Louis Vuitton and other big names like Armani Beauty. His fans adore him so much! They keep tabs on his every move through social media.

Sports stars also work magic for them in China. To stay ahead of the curve, they partner with top athletes. This hits a sweet spot with younger folks who admire their skills and styles.

The goal is to create more online buzz around their brand while lifting that luxury feel higher than ever before too. The mix between local celebs and sports icons works great for this!

It doesn’t end there though! It goes beyond just showing them off wearing Louis Vuitton clothes or using their products – they want fans to copy those looks at home too.

What is their next step? Taking things up a notch by making even better use of digital platforms across China! That way, they can reach out directly to key customers themselves without any interference trapped between them.

Louis Vuitton’s Pop-Up Store in Xiamen

The pop-up store in Xiamen was a significant asset in their past offline marketing endeavors from 5-12th June 2023. It played a pivotal role in engaging their audience in a unique and memorable way.

During this event, they proudly featured the exclusive “LV by the Pool” collection, specially curated to captivate Chinese travelers and fashion enthusiasts alike. This collection embodied a perfect blend of sophistication and leisure, designed to resonate with those who appreciated both luxury and relaxation.

The highlight of the past event was undoubtedly the exclusive gatherings held for their most valued customers. These private leather goods show and VIP events at the pop-up store provided an opportunity for them to personally connect with their top-tier clientele. It allowed them to be among the first to lay eyes on their latest creations, creating an aura of exclusivity and excitement.

Visitors to their temporary boutique during this limited-time event were treated to special deals and enticing offers, making their Louis Vuitton experience even more extraordinary. It was their way of expressing gratitude for their loyalty and patronage.

Perhaps the crowning moment of this past event was the fashion exhibition hosted at the exclusive shop. Here, they unveiled more of Louis Vuitton’s creative prowess, showcasing their innovations and artistry in the world of fashion. It was a glimpse into the future of style, and they were thrilled to share it with their esteemed customers.

As they reminisce about this extraordinary past event, they are reminded of the connections they forged and the experiences they created with those who share their passion for excellence in fashion. It serves as a testament to their dedication to providing unforgettable experiences and celebrating the art of fashion.

Louis Vuitton’s First Restaurant in China

Louis Vuitton opened its first restaurant in China. The Hall sits in Chengdu, China. This Louis Vuitton restaurant is inside a building over 100 years old. The eatery stands next to the new Chengdu Maison luxury store. Both take up space in Sino-Ocean Taikoo Li, a big center for mixed-use development.

You’ll find much style and history here. The vintage building adds charm to your dining experience at The Hall. So it’s more than just food; there’s an ambiance that goes along with it too!

Business Strategy: How the Restaurant Complements the Brand

I noticed Louis Vuitton is making a bold move. The brand opened its first restaurant in China, named “The Hall.” It sits in Chengdu. This city doesn’t have as many people as others do.

But the people there love to spend on nice things.

Louis Vuitton’s choice of spot adds an interesting twist. “The Hall” is tucked away inside an old city spot that once served Cantonese traders. By using a piece of history, the brand speaks with a local voice.

The dining place plays two main roles for Louis Vuitton. First, it makes buying their stuff fun and special by giving buyers something new to enjoy – great meals at “The Hall”. Even more important though, opening up so far from big cities lets them reach rich folks with money to spare who live further out.

As well as this dine-and-shop idea growing their earnings within China hugely, this also goes hand in hand with how they sell online by sparking conversations among clients around food-tasting moments on social media channels which helps boost traffic and consumer engagement across other platforms like WeChat or Little Red Book shopping apps leading eventually to increase purchases of luxury goods.

Business Strategy: Revenue and Performance Metrics

It’s worth noting that Louis Vuitton has experienced remarkable success in terms of revenue and performance in the Chinese market. In 2022, the Fashion & Leather Goods business group of Louis Vuitton recorded a significant revenue growth of 25%. Moreover, the brand’s profitability has been impressively strong, with a positive performance in recurring operations.

The data shows that Louis Vuitton’s business strategy and performance metrics in China have been successful. This information should be useful in understanding the market conditions and developing your strategies.

Challenges and Opportunities

Regulatory Hurdles and Import Duties

China has a big rule for luxury items. It says they must pay import taxes. Some goods like fancy bags have to pay 20% tax. Others, like makeup, even need to pay half of their worth in tax! Local taxes pile on top of the import ones too.

These rules can trip up high-class brands like Louis Vuitton selling in China. Even so, there is hope. The Chinese government made a new plan to make prices lower on costly things by cutting the import duties or fees that one needs to bring an item into a country not its own – also known as tariffs – that are slapped onto consumer products when they enter China from another country.

To help this along, Louis Vuitton lowered their prices in mainland China which is where Beijing and Shanghai are located. This happened around the same time that China decided itself also to cut its own set of import tariffs on incoming stuff or goods—another way it tried making sure luxury brands could offer better rates within its borders.

Now you see how major law changes and duty costs shape our business plans and pricing strategy!

Counterfeit Products and Brand Protection

Fake goods are a big problem. I’ve seen counterfeit Louis Vuitton bags in many parts of China. These knockoff products look very much like the real thing. But they steal our designs and hurt our brand image.

They also cut into their sales and harm the trust that customers have in them. This is part of an even bigger problem as $30.3 billion gets lost every year because of online fake goods trading, not only in fashion but in other areas too! A huge part of this illegal trade – around 60% to 70% – is fake luxury items, just like ours! To fight against these copycat sellers we need good brand protection methods, so people choose authentic Louis Vuitton products.

Opportunities for Further Expansion and Diversification

I see a lot of room for Louis Vuitton to grow in China. Here are some chances for more growth and change:

1. New Stores: They have successfully opened numerous stores in China this year, indicating that this approach is yielding positive results.
2. Home Market: Many Chinese consumers prefer purchasing high-end products when traveling abroad. This consumer behavior suggests that there is still significant potential to expand their sales within the domestic market.
3. High Spending: Chinese consumers have a penchant for spending generously on luxury items. Given this strong market demand, brands like theirs are positioned to thrive in this environment.
4. US and Europe Spending: In contrast, consumers in the US and Europe have been scaling back their purchases of luxury goods. Consequently, they recognize the need to redouble their efforts in promoting their products within China.
5. Online Sales: Exploring the potential to increase online sales is on their radar as a means to reach a wider audience and tap into the digital marketplace.
6. Partner with Others: They are considering collaborations and partnerships with other businesses to facilitate their growth and market presence.
7. Try New Places: Exploring the possibility of opening stores in emerging Chinese cities is under consideration as part of their expansion strategy.

We are Experts in the Chinese Luxury Market, Contact Us!

In conclusion, Louis Vuitton’s impressive success in the Chinese market serves as a testament to its deep understanding of the local culture and its innovative marketing strategies. Their ability to make Chinese consumers feel special and connected to their brand has resulted in significant achievements.

Louis Vuitton has effectively expanded its reach in China through innovative and captivating marketing initiatives. The brand’s storytelling approach resonates with Chinese consumers, who see Louis Vuitton products as symbols of status and refinement.

Overcoming challenges, such as entering the restaurant industry with “The Hall,” has contributed to the brand’s multifaceted success in the Chinese market. The recent pop-up shop in Xiamen showcased Louis Vuitton’s commitment to engaging with their Chinese fanbase and understanding their desires.

For business owners or executives considering entering the Chinese market, it is advisable to adopt a similar customer-centric approach. Leveraging online platforms like Alibaba and JD.com, along with staying attuned to social media trends, can help you connect with Chinese consumers effectively. Continual learning and adaptation are keys to success in this dynamic market.

To explore opportunities in the Chinese market, reach out to our agency, and we can guide you through the process.

This blog post digs into this emerging trend, showcasing top brands, discussing reasons for their popularity, and offering tips to successfully sell such products in China’s booming market.

Ready for a scent-sational journey through the Land of Dragons?

Key Takeaways

• The demand for high-end home fragrances is on the rise in China, particularly following the COVID-19 pandemic, as a greater number of individuals dedicated more time to being at home.
• Chinese consumers are drawn to high-end scents that not only make their homes smell good but also enhance the overall decor.
• The demand for luxury home fragrances is driven by the desire for scented spaces, which provide a sense of comfort and relaxation while offering health benefits.

Rising Demand for Luxury Home Fragrances in China

There’s big money in the luxury home scent market right now. More and more Chinese shoppers are drawn to these high-end smells. They make their homes smell like a dream while adding to the decor at the same time.

Scents for the home are not just nice to have but they’re turning into must-haves in China. This trend is making bucketloads of money! It’s set to grow even bigger too – we could see an increase of 9.4 billion USD over five years! That’s a lot of scented candles, essential oils, and aromatherapy diffusers being sold!

Health Benefits of Home Fragrances for Chinese Consumers

More and more Chinese homes love smells. They like light, fresh scents. It makes the rooms feel clean and nice. People also buy these posh smells for health reasons. Nice smells can help you relax or get rid of bad thoughts after a long day at work. It eases stress and helps them feel good.

I see this trend getting bigger every day in China. Young people have money to spend on pretty things for their houses, and they choose sweet-smelling goods often now. It has led to steady growth in the market size of home fragrances from 2011 to 2016.

I think this rise will keep going up as more young people start shopping for high-end fragrances for their spaces.

Successful Home Fragrance Brands in China

The Beast: A Popular Home Fragrance Brand in China

The Beast is a well-known brand of home fragrances in China. It has gained popularity by opening successful concept shops and offering a wide range of products. Since its launch on Weibo in 2011, The Beast has expanded its product line to include various options such as spar home fragrances, home fragrance candles, fire-free home fragrances, and perfume.

With its focus on quality and innovation, The Beast has become a go-to choice for Chinese consumers looking to enhance their living spaces with beautiful scents.

Vant Kevin: Best-Selling Scented Stones in the Market

Vant Kevin is a famous brand in China known for its best-selling scented stones. These scented stones have become quite a hit among Chinese consumers who are looking to create a pleasant and inviting atmosphere in their homes.

Vant Kevin’s scented stones are not only beautifully designed but also release captivating fragrances that can instantly transform any space. The success of Vant Kevin can be attributed to the high-quality materials used in their home fragrance products, as well as the wide range of scents available.

From calming lavender to refreshing citrus, there is a scent for everyone’s preference. Chinese consumers love how these scented stones provide long-lasting fragrance without the need for constant maintenance or open flames like traditional candles.

How to Sell Home Fragrances in China

Partnering with Local Distributors and Experts

A critical strategy for selling home fragrances in China is partnering with local distributors and experts. This allows companies to tap into their knowledge of the market and gain a competitive advantage. Here are some reasons why this approach is crucial:

• Access to the local network: Local distributors have established relationships with retailers, wholesalers, and e-commerce platforms in China. Partnering with them helps companies navigate the complex distribution landscape and reach a wider audience.
• Cultural understanding: Chinese consumer preferences can be different from those in other markets. Local experts understand these nuances and can provide valuable insights on fragrance trends, packaging design, and marketing strategies that appeal to Chinese consumers.
• Regulatory compliance: Selling products in China requires adherence to specific regulations and standards. Local distributors are familiar with these requirements and can guide companies through the necessary processes, ensuring legal compliance.
• Market intelligence: Local distributors have their finger on the pulse of the market, keeping track of emerging trends, competitor activities, and consumer behavior. This knowledge can help companies make informed decisions about product assortment, pricing strategies, and promotional activities.
• Supply chain efficiency: Working with local partners reduces logistics costs and streamlines the supply chain. They have expertise in navigating customs procedures, transportation networks, and warehousing facilities in China.

Utilizing Digital-Oriented Strategies for Promotion

I understand the importance of utilizing digital-oriented strategies to promote home fragrances in China. The fragrance market in China is driven by digitally savvy Gen Z consumers, which makes it crucial for companies to develop effective online marketing tactics. Here are some key strategies to consider:

Embrace social media

Leverage popular social media platforms like WeChat and Weibo to create engaging content and connect with potential Chinese customers. Utilize influencer marketing campaigns to increase brand visibility and reach.

Optimize for Chinese search engines

Tailor your website and online content to rank high on Chinese search engines like Baidu. Conduct keyword research specific to the Chinese market to drive organic traffic and improve visibility.

Implement targeted advertising campaigns

Utilize data-driven targeting techniques to reach your desired audience segments effectively. Invest in paid advertising on platforms such as WeChat Moments or Douyin (TikTok) where you can specifically target users interested in luxury goods or home decor.

Collaborate with local influencers

Partner with influential bloggers, vloggers, or KOLs (Key Opinion Leaders) who have a strong following in the Chinese luxury goods or home lifestyle niche. Their endorsements can greatly impact brand perception and increase product awareness.

Utilize e-commerce platforms

Sell your fragrance products on popular Chinese e-commerce platforms like Tmall, JD.com, or Kaola.com, which have a large user base already searching for luxury goods purchases.

Leverage user-generated content

Encourage users to share their experiences with your home fragrances on social media using branded hashtags or contests. This can help create buzz around your brand and generate authentic user testimonials.

Embrace the Scented Success: A Flourishing Market Awaits Your Entry!

Luxury home fragrances are gaining significant traction in China, driven by rising demand for delightful aromas in living spaces and a growing emphasis on self-care. Brands such as The Beast and Vant Kevin have achieved remarkable success in this market by teaming up with local distributors and leveraging digital strategies for effective promotion.

With the increasing popularity of upscale scents among Chinese consumers, it’s evident that the trend of home fragrances is firmly established in China’s market. If you’re interested in tapping into this lucrative market in China, please don’t hesitate to contact us.

We’re here to assist you every step of the way, from market entry to product sales. Feel free to reach out to us at any time – we’re just a message away!

China has experienced tremendous growth in the luxury goods market over the past decade, and luxury bags and leather goods are no exception. Today, China is the world’s largest luxury market, with the highest luxury consumption among Chinese shoppers.

Ready to unravel the secrets behind the thriving Luxury Bags And Leather Goods Market In China? Let’s get started.

Key Takeaways

• Despite the challenges brought by the pandemic, China’s luxury bags and leather goods market has shown resilience, with domestic sales of personal luxury goods increasing by 48% in 2020.
• Chinese female consumers play a significant role in driving the market, showcasing a strong preference for trend-oriented products such as handbags and shoes.
• LVMH holds a strong position in the Chinese market, capitalizing on increased spending by Chinese consumers on luxury handbags and jewelry.

Overview of the Luxury Bags and Leather Goods Market in China

Despite the global uncertainty caused by the Covid-19 pandemic, China’s luxury leather goods market remains strong.

LVMH, a leading luxury brand, has maintained its dominance and shown resilience during these challenging times. The pandemic has accelerated retail trends worldwide, but it has had an even more positive impact on China’s luxury sector.

In 2020, domestic sales of personal luxury goods in China increased by 48% despite economic turmoil. This demonstrates the potential for growth in the high-end accessories and leather goods sector in China, even in difficult circumstances.

Trend-oriented preferences of Chinese female consumers

Chinese female luxury consumers in the luxury goods market have a strong fashion-forward mindset and are highly influenced by current trends.

They prefer luxury leather goods from designer labels, driven by their personal style-conscious nature and the influence of key opinion leaders or influencers they follow. Brand recognition among their social circles is important to them. Chinese women now make up about three-fifths of the luxury goods market in China, particularly those who earn more than their male counterparts.

They view high-end fashion items as investments and symbols of social status, highlighting the appeal of luxury brands to this demographic.

Main segments of the market (handbags, shoes)

The main segments of the luxury fashion market in Mainland China are primarily driven by handbags and shoes, which are popular among fashion-conscious luxury shoppers of all ages. Top designer brands like Hermès, Chanel, and Louis Vuitton dominate China’s luxury market.

The handbag market alone reached a value of USD 49.12 billion last year and is expected to continue growing at a rate of 5.8% annually in the coming years. Similarly, designer shoes are also experiencing steady progress in this thriving industry.

The strong market position of LVMH in China

LVMH has established a strong presence in the Chinese market, successfully catering to the preferences and purchasing power of Chinese consumers.

This is evident from the significant increase in sales experienced by LVMH’s leather goods division, which includes renowned luxury brands such as Louis Vuitton and Dior. LVMH has capitalized on the growing demand for luxury handbags and jewelry in China, achieving a revenue growth of 21%.

The Chinese market’s importance in the luxury bags and leather goods industry is further highlighted by LVMH’s exceptional sales growth, with the resurgence of the Chinese market playing a significant role.

With the market projected to continue growing at an annual rate of 7%, it reaffirms LVMH’s strong market position in China and the continued demand for luxury bags in the country.

Latest Trends and Insights in the Luxury Bags Market

Embracing urban charms and captivating Generation Z

The luxury bags market in China is shifting towards trendy and stylish designs that appeal to Generation Z. With 31.2% of Chinese Gen Z consumers preferring luxury leather handbags, brands are adapting to cater to this growing segment.

Gen Z shoppers are drawn to premium leather goods that reflect their personal style and make a fashion-forward statement. Younger consumers also have a strong influence on social media platforms, where they engage with influencers showcasing the latest fashion accessories.

Luxury brands can connect with Gen Z Chinese customers on a personalized level through digital platforms, showcasing exclusive collections and limited-edition luxury items releases.

To appeal to this influential demographic, brands must understand their preferences such as minimalism, sustainability, and embracing individuality, and create innovative designs that align with these values.

The key is to strike a balance between offering timeless classics alongside trendy purses that reflect current fashion sensibilities.

Challenges Faced by Dolce & Gabbana in China

Dolce & Gabbana faced significant challenges in China due to controversial advertisements and offensive videos.

These actions were viewed as disrespectful and racist, resulting in a loss of market share and damage to the brand’s reputation. The company experienced a boycott in China after releasing culturally insensitive videos, and although they claimed their social media accounts were hacked, Chinese netizens expressed their anger.

This incident showcased the power of China’s luxury consumer market. As a result, Dolce & Gabbana suffered a massive 98% loss of the Chinese market, highlighting the negative impact of these challenges on its presence in China.

Minimalism trend and sustainable living in China

Many young Chinese people are adopting a minimalist lifestyle that focuses on mindful consumption and fashion choices.

They are becoming more aware of the impact of their choices and are actively seeking out sustainable fashion options. This shift towards minimalism and mindful living is driven by a desire to reduce waste, live in a more sustainable way, and make ethical purchasing decisions.

Alongside this trend, the DIY luxury trend is also gaining popularity in China. Brands are realizing the significance of customer engagement and are finding innovative ways to involve their customers in the design process.

Key Market Indicators and Revenue

The price differences between luxury bags in China and Europe are attracting the attention of savvy consumers. Find out more about the market revenue, top players, and sales channels driving the luxury bags and leather goods industry in China.

Price differences between China and Europe

In the luxury bag market, there are significant price differences between China and Europe. Luxury bags are notably more expensive in China compared to Europe. Let’s take a look at these differences in a detailed manner:

As evident from the table, brands like Chanel, Gucci, Prada, Louis Vuitton, and Givenchy have substantial price differences in China and Europe.

This could be due to several reasons including import taxes, higher operational costs, and the willingness of Chinese consumers to pay a premium for luxury products.

Market revenue and sales channels

The luxury bags and leather goods market in China has seen significant growth in recent times. Revenue in 2021 reached a staggering $8,541 billion and it is expected to rise even further to $9 billion USD in 2023.

Sales channels are also crucial to consider in this market. Now, let’s take a look at an overview of the market revenue and the sales channels.

In 2021, the main sales channels for luxury goods in China were physical stores, online retailers, and duty-free shops. Despite the challenges posed by the pandemic, Chinese luxury consumers have remained demanding and continue to spend heavily on luxury goods.

This resilience can be attributed to the appeal of luxury brands, which have focused on the Chinese market for a long time due to its importance.

Looking ahead to 2023, it is predicted that direct-to-consumer sales will become even more significant. This shift in sales channels is a crucial factor for companies advertising in the Chinese luxury market. They will need to adapt their strategies accordingly in order to continue attracting this lucrative market.

Overall, the luxury bags and leather goods market in China is experiencing an exciting time, with a promising future ahead.

Key players in the luxury bags market

Here are some of the key players in the luxury bags market that dominate the Chinese industry:

• Hermès: Known for their exquisite craftsmanship and exclusive designs, Hermès is highly regarded as one of the top luxury bag brands in China.
• Chanel: With its iconic interlocking C logo and timeless designs, Chanel continues to be a favorite among Chinese consumers seeking high-end fashion accessories.
• Louis Vuitton: A globally recognized brand synonymous with luxury, Louis Vuitton boasts a strong presence in China, offering a wide range of premium bags and leather goods.
• Gucci: With its trendsetting styles and innovative designs, Gucci appeals to Chinese consumers looking for fashion-forward luxury accessories.
• Fifth Unidentified Brand: While not disclosed in our research, there is an additional brand that holds a significant market share in China’s luxury bags industry.

We are your local partner in China! Contact us!

The luxury bags and leather goods market in China has shown remarkable resilience despite the challenges posed by the pandemic. Chinese consumers, particularly Generation Z, continue to drive demand for high-end bags and have embraced urban charms and minimalism trends.

While price disparities exist between China and other markets, domestic sales are booming, making China a key player in the global luxury industry. With the rise of digital competition and the emergence of Chinese luxury brands, it is an exciting time for the luxury bags market in China.

We are a China-based marketing agency offering cost-effective solutions to foreign brands interested in tapping into the Chinese market. Our team of Chinese and foreign experts has the experience and know-how needed to succeed in this lucrative, yet complicated market.

Gentlemen Marketing Agency offers many digital marketing and e-commerce solutions, such as web design, e-commerce and social media marketing strategies, localization, market research, KOL marketing, and more.

Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation with one of our experts, that will learn about your brand and present you the best solutions for your China market strategy.

China’s jewelry market is a fascinating and dynamic industry that has experienced significant growth over the years. Jewelry holds a special place in Chinese culture, symbolizing wealth, status, and auspiciousness. With a rich history of craftsmanship and a growing middle class, China has become one of the largest consumers of jewelry in the world.

China is a leader in the jewelry industry with more than 40% of the worldwide market share, which attracts everyday companies from the four corners of the world, from international brands to smaller startups.

Let’s not waste time and get right into it: how you can conquer Chinese jewelry lovers.

How to Promote and Sell Your Jewelry in China?

To attract customers, shops in China often lower their prices and offer discounts, allowing them to sell goods at a lower price compared to the United States or Europe.

While entering the Chinese market may be relatively easy in terms of regulations and freedom, competition is fierce, and businesses need to be creative in terms of design, trends, variety, and materials. Providing interesting content and a unique shopping experience is crucial for success.

In addition, traditional views on marriage are changing in Chinese society, and younger generations are placing less importance on it. This is why, when promoting jewelry to young consumers in China, it’s better to focus on fashionable accessories and different types of jewelry, as jewelry consumption is not focused only on the bridal market.

Therefore, jewelry brands should not solely focus on wedding jewelry but also consider custom-made products and online purchases. Brands should also take advantage of festivals and holidays, as these are occasions when many people buy jewelry as gifts.

While physical stores still dominate sales, the O2O (online to offline or offline to online) model has shown promising results for brands.

With a highly connected population, it would be unwise to ignore online channels for promoting a jewelry brand in creative ways. There are various online marketing tools available, catering to the needs and budgets of companies of all sizes.

E-commerce: The easiest way to sell jewelry in China?

You are now probably wondering which channels you can use to sell your products. In fact, you can sell jewelry in malls, store-chain, supermarkets, and jewelry shops. For a long time, Chinese consumers were not reassured enough to buy branded jewelry online as they wanted to be able to try and touch the products.

However, as Chinese society is in constant evolution in terms of digitalization, the fastest and best way to sell your jewelry at a lower cost nowadays is by using e-commerce websites. E-commerce websites and apps are booming in China, and jewelers are carving a lucrative niche in the online marketplace.

Tmall (天猫)

As one of the most popular e-commerce retail platforms, Tmall is a must-have if you want to sell your jewelry in China.

However, you will have to provide a lot of documents in order to have a verified account. Tmall is an opportunity for you to open an online shop and directly sell your products to Chinese consumers without being physically present in China.

Most of the time, the best way for foreign brands to sell jewelry is to use the Tmall e-commerce platform because they need verification in order to do so, which gives more confidence to Chinese buyers.

Taobao (淘宝网)

Unlike Tmall where sellers are certified, Taobao is a completely free C2C e-commerce platform where most of the resellers are not certified, which leads to many counterfeit products.

However, with more than 800 million monthly active users, Taobao is one of the most visited e-commerce websites in China.

Note that both Tmall and Taobao belong to Alibaba.

Mogujie (蘑菇街)

Founded in 2011 in Hangzhou, Mogujie is a social media and e-commerce platform specializing in fashion products and services. The company’s mission is to “Make fashion accessible to everyone” with prices ranging from a few dozen to thousands of yuans. 

It can be very interesting for you to sell your jewelry on this website if you can not afford to sell them on Tmall or Alibaba for example.

It is also important to know that this platform features live broadcasts, short videos, photos, reviews, and articles generated by users, professional fashion influencers, and Mogu’s in-house editorial team.

Jewelry designers have to work on their e-reputation in China

Following some controversy in the Chinese market a few years ago, China is a very digitalized society where people are always connected and accustomed to doing their research online before going to a brick-and-mortar store.

So, it is important and essential for you to develop your O2O strategy to remain competitive in this market and pay attention to your online reputation and feedback from your consumers.

To sell jewelry in China, get a website in Mandarin

The first thing you will need is a website in Chinese. It will enable Baidu SEO and most importantly show that you are a real brand.

We strongly suggest that you develop a version of your website optimized for the Chinese internet (you don’t want a slow website because you are using Google plugins).

In the same vein, your website should follow UX norms Chinese netizens are used to. For instance, a live chat or easy-to-find QR code to send visitors to your social media.

Baidu is a key tool for foreign jewelry brands in China

Considered the “Chinese Google”, Baidu is the most popular Chinese Search Engine and stands as the 5th most consulted website in the world, with a 57% market share as of 2023.

In comparison, only 4% of internet research is done with Google in China. So, to put it simply, Baidu is a step you can’t skip in China if you want to promote your jewelry.

Jewelry brands should be on Chinese Social Media

With the rising use of social media in China, it is undeniable that you will have to use these platforms if you want to boost your reputation and be able to display and show your jewelry. Using social media is also a good way to enhance your product exposure and gain consumers’ trust.

Jewelry transactions online are poised to grow, thanks to social media platforms, new business models, and the popularity of KOLs and live-to-stream. However, if you’re not familiar with these apps, you can contact us for more information and tips. 

Xiaohongshu

With more than 200 million monthly active users, the app Xiaohongshu allows users and influencers to post and share product reviews, travel blogs, and lifestyle stories via short videos and photos.

Xiaohongshu also operates RED Mall, which sells international products to Chinese users. Using Xiaohongshu can be an effective way to increase your brand’s reputation and visibility.

Weibo

Launched by Sina Corporation in August 2009, Weibo is one of the biggest social media platforms in China.

This platform has been a huge financial success, with surging stocks, lucrative advertising sales, and high revenue and total earnings per quarter.

Boasting more than 600 million users with 224 million daily users, it would be considered as offensive to merely label Weibo as the ‘Twitter of China’ (although the name literally means Micro Blog).

In fact, this innovative platform is tailoring itself to E-Commerce marketing options more effectively than the bulk of its competitors. Using Weibo, you will be able to advertise your company and give information to your consumers.

Douyin

As one of the most popular short-video apps in China, Douyin is expected to reach more than 555 million daily active users in 2023.

Both Douyin and TikTok are owned by Bytedance, a Chinese tech company. Douyin literally means “vibrant music” and we can say that its name perfectly matches the short-form videos (less than the 60s) allowing users to combine it with dynamic background music and creative filters.

This short-video content format immediately distinguishes Douyin from traditional Chinese social media platforms like WeChat and Weibo, in which the content still focuses on text, images, and longer videos. Douyin can be a strong advertising channel, especially if you hire a KOL (Key Opinion Leader) to do the promotion of your products.

WeChat

According to the Financial Times, Wechat is the “most important platform for luxury brands”. As the first Social Media in China, Wechat allows you to open an official account and publish news, send newsletters and create e-brochures.

As experts in this field, we can help you to create an official Wechat account and explain how to manage it.

In order to do business in China and promote your brand, you will need to have an official account. After that, the best way for you to promote your brand is to create a WeChat H5 brochure that you will be able to share on WeChat groups, Wechat moments, and any other social media.

The best tools on WeChat:

• You will be able to create a brochure presenting your company
• Spread marketing content
• Send vouchers/discounts to your followers
• Work on your Community Management
• Use WeChat mini-programs

Collaborate with KOLs to promote your Jewelry Brand in China

Another way to engage your community and attract new customers is to hire KOLs (Key Opinion Leaders). This means that even if you have a small budget, you can still hire an influencer. You can even hire multiple KOLs in order to reach different kinds of consumers.

Your micro-influencer will spend more time interacting with their community and answering any questions they may have about your brand. Interaction is important in order to build a relationship of “proximity” and trust with your audience.

What Does the Chinese Jewelry Market Look Like?

According to Statista, Chinese jewelry sales have reached 795 billion CNY in 2022 and will increase to 865 billion CNY by 2026.

The Covid impact was light on the growth of China’s jewelry market except for a single drop in 2020. The market is continually increasing at a stable growth rate since then.

As a matter of fact, China ranks first in the jewelry industry, followed by the United States.

In 2022, luxury jewelry accounted for 38% of the Chinese jewelry market share, with a revenue of 13.71 billion USD and YoY growth of 2% compared to 2021.

If your jewelry brand still has not benefited from this huge market, it is time to make your next step in China.

The Jewelry Industry: A Very Competitive Market

With the huge success and demand for jewelry in China, many brands have decided to open brick-and-mortar stores across China, especially in first-tier cities. You will be able to find international brands with specific luxury jewelry, and retailers selling all kinds of jewelry.

The market is still dominated by local brands as well as international luxury brands. For instance, jewelry brand leaders in China, Chow Tai Fook, and Lao Feng Xiang (both Hong Kong brands) respectively held 8.1% & 6.6% of the market shares.

Young Consumers with Strong Potential

The majority of high jewelry and fine jewelry brands are wondering who would be their TA (target audience) in mainland China. According to the data from Statista, 55% of jewelry customers were aged 25-34 years old while 36% of customers were aged 35-44 years old.

Chinese customers aged 25-44 years old is representing 91% of jewelry customers. They are both Millennials and Gen Z, hence the importance to use marketing leverages and sales channels to appeal to this consumer category in China.

In China, the distribution of the Chinese population is spread. On average, 22% of the Chinese population is Millennials and 16% of the Chinese population is Gen Z. The jewelry market is a concentrated market, with 91% of the sales coming from 38% of the total age consumer groups.

What are the trends in China in terms of jewelry?

According to a survey of Chinese online shoppers, more than 56% of Chinese consumers have a preference for accessories or jewelry with concise design and approximately 38% of them said that they like to buy accessories with a hollowed-out design.

Your main target when selling jewelry will be the upper and middle-class Chinese society. However, as they are more and more inclined to travel, they will have higher expectations when it comes to the quality of your products.

Chinese consumers are looking for creative and unique jewelry and they can afford to spend thousands of dollars if they are interested. They approximately spend 40% of their budget on accessories like jewelry and watches.

Note: Chinese Gen Z (27% of China’s population) spends more and more of their disposable income to purchase luxury goods, great read here.

Therefore, a successful marketing strategy requires an in-depth understanding of the traditional Chinese culture. In order to do so, you will have to take advantage of various opportunities and occasions.

For instance, apart from the wedding market, many jewelry companies are targeting the gift market for families and friends, especially for newborn babies or for birthday presents. 

The different categories of jewelry in China

If you want to export your products to China, it’s important for you to know what kind of jewelry Chinese consumers are ready to buy. In fact, there are different categories that are especially popular in China:

• Precious metal jewelry: it includes jewelry that is made of precious metals such as gold, platinum, and silver, but also non-precious metals like copper and aluminum. Still is the most preferred type of jewelry, for instance, gold jewelry such as gold rings represented more than 47% of the market sales, diamond, and K-gold 20% and jade 19%.

• Precious stones: a segment that is growing in 1st tiers cities. It includes precious stones such as diamonds, rubies, sapphires, crystal, jade, pearls, amber, and topaz. If China as a whole prefers gold, the country is still second when it comes to buying Diamonds. The interesting things with diamonds sell in China, is bridal jewelry is not driving sales. Indeed, with a drop in the marriage rate, jewelry brands in China have launched versatile series that can be worn at any time and bought for any occasion.

• Then you have other jewelry such as ivory, leather, clay, wood, string, and platinum.

What type of Jewelry do Chinese consumers love?

When it comes to jewelry, Chinese consumers have a clear preference for gold as seen above; Gold is symbolic in China, it represents financial and spiritual protection (and being part of the upper class, although this tends not to be true with younger generations).

The gold jewelry market is dominated by locals players but non-Chinese brands are still highly appreciated.

However, the younger generation and especially the Gen-Z is not that focused on gold anymore, but more on the meaning each jewelry has.

Jewelry for women

Foreign jewelry brands have always been popular among Chinese consumers, especially ladies. Sales have accelerated even more as their income has increased and as they are willing to spend more when it comes to fashion and jewelry.

So, it is important to focus on jewelry for women, by creating unique and elegant jewelry for every occasion.

Jewelry for men

The industry of jewelry for men grew significantly in China these past few years, thanks to consumers who are enthusiastic and engaged about men’s fashion. China’s young male consumers are thus increasingly interested in sophisticated, diverse jewelry offerings. They are indeed more comfortable than before wearing jewelry and cosmetics.

The jewelry industry for men is an interesting market to conquer and the opportunity of development in China is quite important for creating new brands entering the Chinese market.

For example, a growing number of Chinese men are posting pictures of them wearing jewelry with the hashtag #MenJewelry (男士珠宝) on social media platforms such as Xiaohongshu (小红书). On top of that, more and more KOLs (Key Opinion Leaders) are giving tips and advice to their followers on how to choose jewelry.

This segment represents a real opportunity as most brands in China are very slowly starting to pay attention to it. In short, there is a demand for more designs and products types that have not been met yet.

We Can Help You Sell Jewelry in China!

Gentlemen Marketing Agency is a digital marketing agency specializing in the Chinese market. Over the years, we have built a strong reputation in the digital fields, collaborating with international companies and leading various successful marketing campaigns. We have experts who help you and give advice if you want to sell jewelry in China.

Do not hesitate to leave a comment below or to directly contact us for more information.

In this blog post, we will explore what the reopening of Chinese borders means for luxury and how businesses can adapt to cater to these new consumers. Join us as we dive into this exciting topic!

How The Reopening Of Chinese Borders Affects The Luxury Market

Chinese outbound tourism is expected to increase significantly following the reopening of borders, leading to a major impact on the global luxury market.

Chinese outbound tourism has become a major force in the global luxury market.

This may change the preferences and spending habits of Chinese tourists, leading luxury brands to adapt culturally and collaborate with local celebrities and influencers who appeal to this audience.

Additionally, luxury brands may take advantage of e-commerce platforms catering to the growing number of Chinese customers.

Evolution Of ‘Revenge Spending’ And Its Effects On The Luxury Market

The reopening of Chinese borders has led to a phenomenon called “revenge spending,” where consumers are buying luxury items after being unable to do so during lockdowns and travel restrictions.

This has resulted in increased sales growth in the luxury market, particularly in fashion and accessories, with China expected to account for 60% of total spending growth on these items by 2030.

While some experts argue that revenge buying may be a temporary trend that could fade over time, others maintain that Chinese consumers will continue to seek out high-end products due to their global tastes and discerning demands.

Changes In Consumer Behavior: From Purchasing Abroad To Local Consumption

Chinese customers are changing their luxury consumption pattern from purchasing abroad to local consumption, and this has been further accentuated by the pandemic’s impact on the borders of China.

With travel restrictions and quarantines still in place at the start of 2022, Chinese customers increasingly made most of their luxury purchases within mainland China.

Despite being price-sensitive customers who would travel abroad to buy products cheaper, top spenders, in China are already traveling overseas again.

Shift In Product Preferences: From Western To Asian Luxury Brands

As the Chinese borders reopen, there has been a shift in consumer attitudes towards luxury goods. Instead of Western brands dominating the market, there is now a preference for Asian luxury brands among Chinese consumers.

For example, the Chinese brand Li-Ning has become increasingly popular due to its unique designs and culturally relevant marketing campaigns.

This trend can be attributed to several factors such as the growing sense of national pride among young consumers and increased exposure to homegrown brands through social media platforms like WeChat.

Emergence Of New Consumer Types In Post-Pandemic China

New consumer types have emerged in China’s post-pandemic economy, including young, digitally savvy individuals who prioritize experiences and seek out brands that align with their values.

Chinese millennial and Generation Z consumers now make up a significant portion of luxury buyers in China.

There has also been a shift towards online platforms for shopping due to brick-and-mortar store closures during the pandemic.

Technology is important in the shift towards e-commerce as it offers personalized product recommendations, virtual stores that use AR/VR for immersive shopping experiences, and makes the purchasing process more accessible than traditional physical retail.

Generation Z And Millennial Consumers

Generation Z and Millennial consumers are driving domestic demand for luxury goods and other products, making them a crucial demographic for brands to target.

Chinese Gen Z consumers have diverse preferences and interests, with a significant focus on local fashion brands, household supplies, and home appliances. They’re digital natives who crave unique experiences that cater to their individuality.

As for Millennials, they’re known for being socially conscious and environmentally aware – values that are increasingly reflected in their consumption habits.

From Physical Stores To Online Platforms

Shopping habits in China have moved from physical stores to online platforms, as consumers prioritize convenience and safety in overcrowded spaces.

Brands can capitalize on this shift by investing in e-commerce and improving the online customer experience, with a focus on personalization and smooth transactions.

Growing Trend Of Sustainable Luxury

Luxury brands need to prioritize sustainability in response to consumer demand, especially from Gen Z and Millennial segments who prioritize eco-consciousness.

According to Bain & Company, 80% of Chinese respondents consider sustainability when making purchasing decisions.

To cater to these consumers, luxury brands must adopt sustainable practices throughout their supply chain, including sourcing raw materials, packaging, and marketing strategies.

Brands like Stella McCartney have set an example by using recycled polyester and organic cotton in their designs while reducing carbon emissions through the use of renewable energy sources in manufacturing facilities.

Adapting To The New Consumer Types

Luxury brands must focus on being omnichannel with a strong digital presence, localized experiences, and personalized offerings tailored to the evolving consumer behavior in China.

Digital Marketing And E-commerce: The Importance Of Being Omnichannel

An omnichannel approach involves using multiple channels to reach consumers, providing a seamless shopping experience across all platforms, whether online or offline.

To stay ahead of the game when competing in China’s luxury market post-reopening means adapting your communication strategy to embrace an increasingly tech-savvy consumer base that demands a unique shopping experience tailored for them across various channels.

Localization And Personalization: Creating Experiences Tailored To The Chinese Consumer

Customizing experiences to fit the unique tastes and preferences of this market is essential for global luxury brands’ success in China.

For instance, Gucci created localized content for its digital platforms in China with creative campaigns featuring local celebrities.

Other examples include Dior partnering with Tencent’s WeChat app to provide personalized skincare recommendations based on data like weather and humidity conditions at customers’ locations.

Shanghai Tang, a Hong Kong-based brand, has succeeded by fusing traditional Chinese fashion elements such as embroidery into contemporary designs that appeal to young consumers looking for new interpretations of Chinese culture.

Collaboration With Local Influencers (KOLs) And Celebrities

Luxury brands find it essential to collaborate with local influencers and celebrities in China to establish personalized connections with consumers who rely on word-of-mouth recommendations.

Balmain’s partnership with Chinese singer and actor Zhang Yixing resulted in a 500% increase in sales after he wore their clothing online.

Another example is Gucci’s partnership with Lu Han, a popular celebrity in China known as “the nation’s little brother.” Gucci collaborated with Lu Han on creating limited edition products that were sold exclusively in China.

Sustainable Practices In The Luxury Industry To Appeal To Eco-conscious Consumers

A growing interest in sustainable fashion and environmentally responsible practices is evident among younger, urban, and socially conscious consumers.

It’s crucial for luxury brands not to misread consumer sentiment when it comes to sustainability in China. In some cases, western perceptions of what constitutes being “green” may not align with Chinese perspectives.

To address these concerns effectively, businesses should invest time in studying the local culture and values.

Case Studies

Luxury brands such as Gucci and Louis Vuitton have successfully adapted to the new consumer types by partnering with local influencers and creating personalized experiences through AR and VR technology.

Examples Of Brands That Have Successfully Adapted To The New Consumer Types

In China’s luxury market, brands that successfully adapted to the changes brought by the reopening of borders shifted their focus towards understanding local consumer preferences.

For instance, Gucci quickly pivoted from a focus on Western marketing campaigns and brand ambassadors to incorporating Chinese cultural elements in their designs and partnerships with local KOLs like Xiao Zhan.

Meanwhile, Louis Vuitton launched an online store on Tmall Luxury Pavilion to target younger consumers who prefer shopping through e-commerce channels.

Other brands like Burberry have embraced sustainability as a core value proposition for eco-conscious Chinese consumers.

Lessons Learned From These Case Studies

From the case studies we analyzed, it’s clear that adapting to the post-pandemic Chinese luxury market requires a few key strategies. Firstly, businesses must prioritize digital marketing and e-commerce.

This means being active on China’s major social media platforms like WeChat and leveraging online marketplaces like Tmall and JD.com to reach consumers where they are most active.

Secondly, localization is crucial for creating tailored experiences that resonate with Chinese consumers.

Thirdly, technology can be used to create personalized shopping experiences through augmented reality (AR), virtual reality (VR), and artificial intelligence (AI).

Fourthly, adopting sustainable practices is no longer optional but essential for winning over eco-conscious Chinese consumers who demand responsible products.

We are your local partner in China!

To succeed in the post-pandemic Chinese luxury market, brands must adapt to new consumer types and behaviors, leverage digital technologies and sustainable practices, collaborate with local influencers, and offer personalized experiences.

In addition, purpose-driven and socially responsible brands are gaining traction among Chinese consumers.

Gucci’s implementation of sustainable practices in their supply chain and reduction of carbon emissions resonate with eco-conscious consumers in China.

By collaborating with local influencers (KOLs) or celebrities, luxury brands can build trust and credibility with Chinese shoppers.

We are a China-based marketing agency offering cost-effective solutions to foreign brands interested in tapping into the Chinese market. Our team of Chinese and foreign experts has the experience and know-how needed to succeed in this lucrative, yet complicated market.

Gentlemen Marketing Agency offers many digital marketing and e-commerce solutions, such as web design, e-commerce and social media marketing strategies, localization, market research, KOL marketing, and more.

Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation with one of our experts, that will learn about your brand and present you the best solutions for your China market strategy.

The island boasts the best luxury hotels in China, skyscrapers, exclusive golf courses, and gourmet dining options tailored to discerning palates – all key ingredients needed for attracting a wealthy clientele searching for new places where they can indulge in their penchant for spending on high-quality products and experiences during their vacations.

One of the driving forces behind this exceptional growth is China’s desire to repatriate its luxury spending. In 2021 alone, Hainan accounted for an impressive 13% of China’s domestic luxury spend compared to just 6% pre-pandemic.

Moreover, many global luxury brands have recognized the enormous potential of this growing market and are rapidly expanding their presence on Hainan Island. With strong economic growth projections for China’s high-end consumer market, it becomes crucial for international brands to develop targeted branding strategies that resonate with Chinese consumers while standing out from competitors’ offerings on the island.

Key Takeaways

• Hainan Island has quickly emerged as a major player in the luxury market, attracting both domestic and international affluent travelers seeking premium experiences.
• The Chinese government’s favorable policies and initiatives to facilitate luxury growth have played a significant role in transforming Hainan Island into an attractive destination for high-end retail and hospitality experiences.
• Hainan Island is home to duty-free shopping policies that attract luxury shoppers who seek exclusive experiences tailored explicitly toward high-end customers through bespoke concierge services offered by top-tier hotels. This policy change has led to a boom in Hainan’s duty-free fashion and beauty industry, with some global brands like Gucci opening their largest stores at CDF Mall on the island.
• Hainan Island offers unique and exclusive shopping experiences tailored for the luxury market, boasting modern resorts with chic accommodations designed to appeal to affluent travelers seeking both comfort and style.

How Hainan Island Became a Luxury Destination?

Government Initiatives And Policy Changes Facilitating Luxury Growth

The Chinese government announced in June 2020 their plan to loosen tax regulations on Hainan Island. This move was strategically designed to attract more domestic and international high-end travelers, encouraging them to spend on luxury items while enjoying their vacation.

The impact of these policy changes and government initiatives can be seen through Hainan Island’s growing success as a prominent luxury hotspot. Apart from adjusting duty-free shopping quotas, other measures such as infrastructure development projects have played an essential role in enticing affluent visitors from both within China and across the APAC region.

Growing Popularity Among Affluent Travelers

This surge in high-end tourism can be attributed to various elements, such as the island’s warm climate, picturesque beaches, and world-class resorts that cater to even the most discerning tastes.

Moreover, savvy marketing campaigns promoting the region’s attractions and diverse activities have successfully caught the attention of these well-heeled visitors.

From golfing at championship-designed courses to indulging in exclusive spa treatments surrounded by lush tropical landscapes, there are plenty of leisure options tailored specifically for this demographic.

The implementation of attractive tax incentives and duty-free shopping also entices luxury travelers to spend more during their stay on Hainan Island. As an example of its rapid growth in this sector, Hainan accounted for 13% of China’s domestic luxury spend in 2021 – more than double its pre-pandemic share.

High-end Attractions, Facilities, And Accommodations

The island boasts modern resorts with top-notch amenities and chic accommodations designed to appeal to affluent travelers seeking both comfort and style. From premier attractions like Mission Hills Haikou Golf Course to high-end hospitality at properties like the Raffles Hainan Resort & Spa, there’s no shortage of luxurious options for discerning visitors.

Luxury shopping districts on Hainan Island feature world-renowned brands alongside local designers, making it an exclusive retail destination for elite shoppers. With its deluxe services and facilities catering to every need of the luxury travel market, Hainan Island has become one of the most sought-after tourism offerings in China.

All these factors combined have helped establish Hainan Island as an attractive destination for luxury travelers seeking exclusive experiences in upscale surroundings.

Shopping In Hainan Island – A Paradise For Luxury Retail

Exploration Of Duty-free Shopping Policies And Their Impact

The Chinese government made a decision in June 2020 that has since led to a boom in Hainan’s duty-free fashion and beauty industry. The impact of this policy is evident: In 2022, Hainan province in China witnessed a rise in its gross domestic product (GDP) to around 681.8 billion yuan, marking an increase from approximately 650.4 billion yuan in the previous year.

The world’s largest single luxury mall is also located on Hainan Island – known as CDF Mall – which has been driving internal tourism to the region. Hainan’s status as Asia’s premier travel retail destination continues to attract shoppers who seek out exclusive experiences tailored explicitly toward high-end customers through bespoke concierge services offered by luxury hotels in China.

Presence And Expansion Of Global Luxury Brands

As Hainan Island has become a popular luxury destination for Chinese shoppers, many global luxury brands have expanded their presence on the island. Some well-known brands that have opened stores or increased their footprint in Hainan include Gucci, Cartier, and Chanel.

With international travel restrictions limiting the ability of Chinese tourists to shop abroad, Hainan Island is increasingly seen as an attractive alternative. As a result, competition among luxury brands is heating up on the island.

Brands need to develop targeted strategies that resonate with Chinese consumers while standing out from competitors’ offerings.

Unique And Exclusive Shopping Experiences Tailored For Luxury Market

Hainan Island offers unique and exclusive shopping experiences tailored to the luxury market. Here are some examples:

• Hainan’s duty-free shops offer a range of high-end products not available in other countries, including limited-edition luxury goods.
• Some brands, such as Japan’s Shiseido, create exclusive packaging for their products sold on Hainan Island to appeal to Chinese customers’ tastes.
• Luxury car brands such as Mercedes – Benz, and Audi have opened showrooms on the island with customized services and offerings for their wealthy customers.
• The island’s malls and shopping centers feature upscale decor and amenities such as VIP lounges and personal shoppers to enhance the luxury shopping experience.
• Hainan also hosts events such as fashion shows, art exhibitions, and product launches to create an elevated shopping experience for its affluent visitors.

The Economic Impact Of Hainan Island’s Luxury Market

Contribution To Local And National Economy

The island’s growth as a luxury destination has had a significant impact on both local and national economies. This increase in tourism and retail activity has also led to job creation and the development of related industries like hospitality services, transportation, and logistics.

Furthermore, there have been major investment projects aimed at developing its infrastructure and expanding luxury offerings on the island. The cultural development projects such as theme parks and museums are also attracting visitors from around China driving demand further for the food & beverage industry along with other businesses.

The Sports Industry too is benefiting from Hainan’s popularity as an international destination hosting premium events such as PGA Tours’ only Asian golf tournament.

Hainan Island’s Role In China’s Greater Consumption Upgrade

Hainan Island is playing a crucial role in China’s greater consumption upgrade, as it provides an exclusive shopping experience for Chinese luxury consumers and attracts international tourists seeking high-end amenities and products.

Comparison With Other Luxury Retail Destinations In China

The Future Of Hainan Island As A Luxury Retail Destination

As China’s economy continues to boom, experts predict that the luxury market is poised for significant growth. This is particularly true for Hainan Island, which has already established itself as a major player in the luxury travel retail industry.

Hainan Island is expected to continue its growth, with an estimated increase of 30-40% in the next five years, leading to increased competition among luxury brands and a need for continued investment in infrastructure and development projects.

This presents both challenges and opportunities for brands looking to tap into this lucrative market. On one hand, there is fierce competition among luxury retailers vying for attention from discerning consumers.

On the other hand, high-end brands have much to gain by investing in Hainan’s growing infrastructure and developing tailored marketing strategies designed to appeal specifically to Chinese travelers.

Future Investment In Luxury Infrastructure And Development Projects

As the luxury market on Hainan Island continues to grow, there is an increasing need for investment in high-end infrastructure and development projects.

With China’s ambitions as a free trade port, Hainan has the potential to become a global hub of luxury retail.

For example, some successful luxury brands have already invested heavily in their presence on Hainan Island by opening flagship stores and launching exclusive product lines tailored to Chinese consumers.

There are also plans underway for new unique luxury hotels, restaurants, and entertainment venues that will cater exclusively to the high-end segment of the market.

Strategies To Handle Increasing Competition Among Luxury Brands

Luxury brands need to develop strategies that will enable them to stand out and attract customers. One approach is by creating unique experiences and offerings tailored to the preferences of affluent travelers.

Another effective strategy would be leveraging digital channels such as social media platforms to reach potential customers and build brand awareness.

Moreover, building strong partnerships with other retailers on the island through joint promotions and events is an excellent way to tap into new customer bases while also sharing marketing costs.

With these strategies in place, Hainan Island’s luxury market has great potential for future growth despite increasing competition from other destinations such as Macau or Shanghai.

Case Study: Successful Luxury Brands On Hainan Island

1. Ralph Lauren – The American fashion brand has opened several stores on Hainan Island, including one in Haitang Bay Duty-Free Shopping Complex. Their strategy includes offering personalized shopping experiences for customers, creating exclusive product lines tailored to the Chinese market, and leveraging Chinese social media platforms to engage with their audience.
2. Coach – The American fashion house has also found success on Hainan Island by opening multiple stores across the island. Their strategy includes creating limited edition products exclusive to Hainan Island, partnering with Chinese celebrities to promote their brand, and investing in high-quality store design and visual merchandising.
3. Estee Lauder – The cosmetics giant has focused on building relationships with Chinese tourists and developing targeted marketing campaigns to reach them before they even arrive on the island. They’ve also expanded their presence beyond duty-free shops by opening standalone stores in popular areas such as Sanya.

Maximize Your Brand’s Potential in Hainan Island – Partner with GMA for Strategic Success

At GMA, we understand the complexities and opportunities presented by Hainan Island’s emergence as a top luxury travel destination in China. Our team is here to help you navigate the competitive landscape and capitalize on the growing popularity among affluent travelers.

With our expertise in marketing, branding, and innovative strategies, we can assist you in differentiating your brand and staying ahead of the competition. Whether it’s developing tailored campaigns targeting domestic travelers or leveraging unique duty-free shopping policies, we have the knowledge and resources to maximize your success in Hainan’s luxury market.

Don’t miss out on the tremendous potential that Hainan Island offers. Contact us today to discuss how we can collaborate and elevate your brand’s presence in this thriving destination. Together, let’s create memorable experiences and drive growth in the luxury travel retail sector.

Understanding the Chinese elite society

The Chinese elite society consists of individuals who value both social prestige and personal success, with luxury goods serving as a form of social currency to display their wealth and status.

Characteristics and preferences of the ultra-rich

One of the most noticeable traits among Chinese high-net-worth individuals is their strong inclination towards luxury goods and experiences as a means of displaying social status. This preference for opulence extends beyond just luxury beauty, and fashion, encompassing luxury automobiles, private jets, and exclusive real estate properties.

Another aspect worth noting about the ultra-rich in China is their evolving consumer behavior due to changing social dynamics and emerging trends. For instance, younger members of this elite group increasingly value sustainability, emphasizing brands that incorporate eco-friendly practices or support social causes.

Similarly, many wealthy Chinese consumers place great importance on brand heritage and craftsmanship; products from Chinese luxury brands with rich historical narratives are highly desirable among them.

Moreover, personalization has become an essential component when it comes to capturing their attention – limited edition items, trendy or seasonal merchandise, or bespoke services catered specifically to individual tastes resonate well with these affluent shoppers and drive luxury sales, especially in fashion and lifestyle categories.

The role of luxury as social capital

In the Chinese elite society, luxury goods and brands hold immense social capital. They serve as a means for individuals to showcase their wealth, status, and taste – enabling them to form networks and connections with like-minded individuals. For instance, owning high-end luxury handbags or driving sports cars from premium international brands can elevate one’s standing in the inner circle of elites, helping secure deals and establish valuable contacts.

Social capital is especially vital for younger Chinese consumers who face fierce competition in various aspects of life including education, career opportunities, and even romantic relationships. Luxury items act as tangible proof of success that cannot be easily discredited by others.

As an example, attending exclusive events wearing high-end fashion labels can help young professionals make a strong impression on potential clients or employers. Additionally, being well-versed in global luxury trends can also reflect their cosmopolitan outlook – which resonates positively with the growing group of globally-minded Chinese elites interested in China’s luxury market.

Evoking prestige among peers isn’t limited to conspicuous consumption alone – showcasing rare experiences such as exotic travel destinations or limited-edition whiskey tastings carries equal cachet in elite circles.

Emerging trends in luxury consumer behavior

Chinese luxury consumers have become a driving force behind the global growth in spending on high-end goods, leading to new trends emerging within this market segment. One notable shift is the increasing interest of Chinese Gen Z consumers in vintage products and classic designs. This demographic often opts for purchasing secondhand items as they seek unique pieces that reflect their individuality while still catering to their desire for luxury.

The ambivalent attitudes towards luxury goods consumption among the Chinese elite can be attributed to the coexistence of traditional and modern values within China’s society. For example, some may exhibit herd consumption behavior when it comes to certain luxury brands due to cultural influences or perception of the status offered by these products.

However, many members of this affluent group also appreciate personal experiences with a brand – whether it’s through personalized services or loyalty programs – showcasing their preference for more meaningful connections.

In recent years, we’ve seen increased importance placed on digital marketing strategies and online luxury sales among luxury brands looking to tap into China luxury market. The focus on online presence not only allows them to reach a larger audience but also cater directly to evolving consumer preferences such as livestream shopping events and collaborations with influencers.

Strategies for brands to connect with China’s luxury market consumers

Luxury brands can effectively connect with the Chinese elite society by implementing digital marketing strategies, collaborating with influencers and KOLs, offering personalized experiences for customers, and establishing relationships through loyalty programs.

Digital marketing strategies to reach new audiences

As a marketing manager looking to tap into the Chinese luxury market, it’s crucial to develop effective digital marketing strategies that can reach new audiences. Here are some of the best approaches to consider:

Leverage social media platforms

With over 1.26 billion active users on WeChat and 818 million on Douyin, social media platforms have become an essential channel for luxury brands to connect with Chinese consumers. Creating engaging content that resonates with your target audience and collaborating with KOLs or influencers can help drive engagement and brand awareness.

Optimize for mobile

Mobile dominates internet usage in China. Consider mobile-first design when developing your website, ads, and other digital assets as this will enhance user experience across various devices. Online sales are even more important after covid, as mall traffic improves and consumer sentiment rebounds.

Utilize video marketing

China has the largest online video audience globally with nearly 600 million users watching videos on a daily basis. From product demos to behind-the-scenes footage, video marketing can be an effective way of showcasing your brand’s unique selling points.

Embrace live-streaming

Livestreaming has become increasingly popular in China, with many luxury brands tapping into this trend to showcase their products or conduct virtual events that engage audiences in real-time.

Implement programmatic advertising

Programmatic advertising enables brands to target their ideal audience at scale using automated buying tools. This strategy allows you to personalize messaging based on data insights from digital advertising platforms like Baidu or Alibaba’s e-commerce sites Taobao and Tmall.

By incorporating these digital marketing strategies into your overall approach, you will not only expand your reach but also establish a strong presence in the highly competitive Chinese Luxury market.

Collaborating with influencers and KOLs

Collaborating with influencers or KOLs is an effective strategy for luxury brands to connect with the Chinese elite. Whether it’s through social media, PR events, or brand ambassadorship, a successful partnership can help broaden your reach and influence among your target audience.

Overseas Chinese influencers are particularly influential in this demographic due to their shared cultural backgrounds. For example, actress and singer Fan Bingbing have been a brand ambassador for luxury jewelry houses like De Beers and Boucheron, helping these brands gain visibility among her millions of followers on Weibo and Instagram.

To ensure mutual benefits from collaborations, the influencer must be genuinely interested in working with the brand and understand its values while adhering to relevant ethical guidelines prescribed by platform policies. Brands should also take care to evaluate potential partners thoroughly before signing contracts or agreements – this includes checking their track record against metrics such as engagement rate, follower demographics, etc.

Influencers aren’t just limited to fashion bloggers or movie stars – celebrities can also help brands reach their target audience in China. Director Wong Kar-wai served as creative director for Shanghai Tang; actor Gong Li represented Piaget’s “Possessions” collection in duty free; NBA star Yao Ming endorsed Swiss watchmaker Maurice Lacroix — All contributing factors in building awareness of Western luxury goods among Chinese consumers who aspire to emulate their role models’ lifestyles..

Creating personalized experiences for customers

As luxury brands look to connect with the elite society in China, creating personalized experiences for customers is a crucial strategy. One example of this approach that has been successful in China is Tiffany & Co.’s “Personalization Bar” concept. Customers can engrave messages on their purchases or customize designs specifically for them. This allows the brand to create unique and memorable experiences that resonate with customers beyond just selling products.

Another way to personalize experiences is by leveraging data-driven insights into customer behavior and preferences. Brands can use these insights to tailor marketing campaigns and product offerings to different segments of their audience.

Overcoming challenges in the Chinese luxury market

Luxury brands face challenges in the Chinese market, including cultural nuances and communication barriers, brand perception and reputation management, and combating counterfeit products. Read on to discover strategies for overcoming these obstacles and connecting with China’s elite society.

Cultural nuances and communication barriers

Language barriers, cultural differences, and value divergence can easily lead to misunderstanding and low efficiency in internal communication within American and Chinese companies. One of the biggest challenges is building trust, which takes time in China since relationships are important in business dealings.

For instance, directness isn’t always appreciated or welcomed in China. A common phrase used is “saving face,” meaning avoiding embarrassment or shame publicly. It’s essential to remain respectful when communicating with potential partners or clients by addressing them formally before getting more familiar over time.

Another example of cultural nuance is that the Chinese tend not to be as comfortable saying no directly; they may say yes but fail to follow through on commitments due to being too polite or not wanting to disappoint you. It’s imperative for marketers who want successful interactions with their Chinese clientele always have an interpreter involved.

Brand perception and reputation management

In Asia, consumers place great importance on prestige and reputation when considering purchasing luxury goods. This means that companies need to maintain a strong image by remaining authentic, transparent, and socially responsible. Seems obvious, but only a few brands actually realize that.

For example, during COVID-19 lockdowns in China, several luxury brands were criticized for their handling of employee pay and working conditions. These instances tarnished their reputations and negatively impacted sales. On the other hand, brands like L’Oréal successfully maintained positive perceptions by donating funds towards pandemic relief efforts in China.

Combatting counterfeit products

Counterfeiting is a major concern for luxury brands operating in China since it damages the brand reputation and decreases sales revenue. In order to combat this issue, companies need to employ strategies that prevent counterfeiting at every stage of production and distribution, including partnering with local law enforcement agencies and implementing effective anti-counterfeit technologies.

We can help you navigate in China luxury market

In order to successfully navigate the complexities of the luxury market in China, brands must develop a strategic approach that takes into account cultural nuances and brand perception, while also delivering excellent experiences for customers through digital marketing, personalized offerings, and loyalty programs.

With an understanding of the preferences and behaviors of the Chinese elite society, luxury brands can establish long-term relationships with their target audience and succeed in this important market.

We are a China-based marketing company specializing in digital marketing and e-commerce solutions for foreign brands in the Chinese market. Over 10 years, we gained the experience and know-how needed to help international brands succeed in China’s luxury market.

We offer many different services, starting from market research, through official accounts’ set-up, and web design, to influencer marketing and social media strategies.

Don’t hesitate to leave us a comment or contact us, so that we can schedule a free consultation with one of our experts. Let’s keep in touch!

Let’s take a look at this year’s edition of mooncakes from luxury brands

Like a tradition, this year’s top luxury brands’ mooncake creations had a wide variety of spectacular designs and flavors that have been crafted to ensure the Mid-Autumn Festival 2022 celebration in China was nothing short of extraordinary.

From creative textures and hues to unique shapes, luxury brands have unveiled their captivating boxing designs. Luxurious yet traditional, these exquisite creations are sure to tantalize the senses of Chinese consumers.

When it comes to flavors, Luxurious brands have masterfully blended a mix of classical favorites such as black sesame and lotus paste in addition to contemporary new tastes like green tea with earl gray and chocolate truffle.

This year Giorgio Armani opted for a timeless Chinese painting with a subtle charm, while Gucci‘s night blue velvet box was the polar opposite; boasting an atmosphere of luxury.

Fendi crafted an exquisite moon-shaped design adorned in vibrant gold and silver colors that exudes elegance.

Celine’s logo-branded mooncakes were an intriguing treat, but Louis Vuitton took the cake with its stunningly designed mooncake that contains a painting kit.

Dior’s mooncake design was an exquisite work of art that features traditional black and white painting, as well as luxurious woodwork for its main box. This design captured sophistication and beauty in one stunning package.

In comparison, Tiffany has presented their mooncakes in an exquisite turquoise box that doubles as a lamp.

While Bvlgari has incorporated an elegant Chinese fan with a captivating shade of violet.

Contact us to develop a special campaign for Chinese festivals

We are a China digital marketing agency with more than 10 years of experience. Over the years we helped many brands with their special holiday campaigns so that they adapt to the needs of their customers in China.

GMA Case Study: Lyfen packaging design for Mid Autumn festival

Don’t hesitate to leave us a comment or contact us to develop a special marketing campaign for your brand in China.

With real-world assets being “tokenized,” buying, trading, or selling becomes easier while preventing fraud. Moreover, an NFT can represent property rights and people’s identities. One example is the file of one of the popular digital independent artists Beeple, or Mike Winklemann, which contained 5,000 pictures. It took him 14 years to complete the piece. Auctioned as an NFT, it was sold for over $69 million. The Chinese NFT market is growing at a fast pace, so we’d like to take a look at what is behind NFT technology.

Are digital collectibles legal in China?

The Chinese government is not inherently opposed to NFTs so long as cryptocurrency transactions are not involved. This is in line with NFTs being labeled as “digital collectibles” or “virtual collectibles” in China rather than “tokens”, which is the term commonly used in cryptocurrency. The volatile and unpredictable nature of cryptocurrency and its potential to facilitate unlawful economic objectives led the Chinese government to take a prohibitive stance against such virtual currencies.

Nevertheless, NFTs themselves do not seem to put the Chinese public interest at risk and, thus, do not warrant negative government intervention. Tech giants like Tencent and Alibaba are actually investing huge pools of money in NFT platforms as a secondary market.

Moreover, a state-sponsored BSN or Blockchain Services Network aimed at bolstering the NFT industry in China launched in January 2022. Only the Chinese yuan can be accepted as payment for fees involving the use of the BSN. Also, unlike crypto-transacted NFTs, this BSN will give companies and users a platform to create their own mediums within which to manage their NFTs.

Exploring China’s NFT market

Given the cryptocurrency restrictions set by the Chinese government and the lack of comprehension and dissemination of this rising industry, the development of China’s NFT market may fall behind that of its Western counterparts.

However, non-fungible tokens are gaining more attention in the country’s crypto community, with several enthusiasts exploring different fields. There is a growing number of new Chinese NFT platforms, NFT collections, or NFT marketplaces, as major Chinese companies just jumped on the NFT bandwagon.

Financial Industry

Committed to redefining the fintech industry, Candaq Fintech Group helps us incubate various fintech and blockchain businesses. In 2020, the group was at the forefront of organizing NFT’s first local investment roadshow in Hubei Province’s capital, Wuhan.

The venture capital firm CryptoC is also involved in incubating investments in financial infrastructure, DeFi, blockchain, Web3, and more. Major teams are in the Netherlands, Germany, and Shanghai. They have CryptoC Benchmark, a system for technical due diligence on various blockchain projects. Different investors and institutions can seek advice from them when it comes to these blockchain projects.

Meanwhile, the research-driven venture firm named IOSG Ventures works on Web3, infrastructure for the decentralized economy including NFT, and open finance. They’re present in the U.S, Singapore, and China.

Whether our early-stage project falls under blockchain, cryptography, or financial technology, the firm can make the investment. They also create developer communities, provide funding for academic research laboratories, and offer the resources to help promising teams succeed.

Gaming Industry

Existing within the expansive virtual world of Decentraland, Dragon City is a virtual city that is the first to showcase Chinese motifs and culture from all points in time, even the future.

Being created by Metaverse Labs, this platform got its public debut in July 2020. From the time of its launch, it now serves as China’s biggest virtual blockchain world.

The growth of Dragon City is a testament to the increasing number of crypto players in China, proving that there is a huge market in the country for the NFT industry.

Art Industry

Given the challenge of declaring ownership of a specific artwork, monetizing digital art used to be difficult. Fortunately, NFTs maintain the security and uniqueness needed for arts. These artworks are then stored and authenticated on blockchain and can now be traded easily. 

In Beijing, Ullens Center for Contemporary Art, or UCCA Labs, launched its first NFT exhibition “Virtual Niche: Have you ever seen memes in the mirror?” It displayed the crypto art of over 60 artists, including Robert Alice and Ellwood. One of the works featured was Beetle’s “Everydays: The First 5000 Days.”

Celebrating both the crypto community and the art community, the exhibition gained enormous attention and coverage from the media, both locally and internationally. It sparked conversations related to art, finance, and the Internet. This demonstrates the Chinese public’s growing interest in NFTs.

Alipay’s 8,000 limited-edition non-fungible tokens were also launched in China in 2021. These NFTs are mainly based on Dunhuang Caves’ ancient artwork. In this cave, several pieces of Buddhist art, dating back to a thousand years old, could be found. Selling these items was quick and easy.

Moreover, the giant social media and gaming company Tencent came up with an NFT trading platform Huanhe. After artwork and audio NFTs were made available on the platform, they were sold in no time. NFT trading platforms are another thing gaining popularity in China.

From pricing and auction, to even blind box distribution, the trading platform available for NFTs already has different modes available. Creators are likewise given a wide range of options for where to sell their NFTs. They can sell their digital product and audio collectibles locally via the platform itself, or they can sell to overseas clients by synching with Rarible, OpenSea, and other international secondary trading platforms.

Several contemporary art companies are also becoming active in the NFT market in China while aiming to build an ecosystem of digital arts and other collectibles. Multiple art exhibitions focused on Chinese NFTs have plans to launch in Shanghai and Beijing. 

More companies are acknowledging the abilities of promising crypto artists as shown in their willingness to sponsor the development of their artworks. One example is a crypto artist in Beijing named Chen; he shared that two organizations offered him financial support so he could accomplish his artwork.

There also exists a government-authorized “alliance” of blockchains that is maintained by selected private companies. Ant Group Co. and Tencent Holdings Ltd. spearheaded this alliance. Ant Group Co, in particular, sought the participation of art establishments, such as galleries and museums, in using the company’s blockchain technology in issuing their digital collectibles. 

This campaign was called the “Treasure Project”, which currently has two dozen museums in China expressing their intent to participate. In recognition of the Chinese Year of the Tiger, these museums are poised to issue NFTs of tiger-inspired Chinese artifacts. 

Another illustration of the potential of NFTs in the Chinese art industry is that thousands of digital pictures of a historic Chinese sword, the “Sword of Goujian”, were sold in a matter of minutes.

Music Industry

The NFT market in China also includes real-world assets like music. One great example is the release of the first local NFT of digital music, called “WATER KNOW”. It was performed by renowned singer, A Duo. The song sold for over RMB 300,000 in an auction. Merging blockchain technology with digital music transforms the music scene. Also, given that NFTs cannot be forged, each process can be easily traced, making the system more reliable.

Luxury Brands 

The first luxury brand focusing on the NFT space is RTFKT. They are the source of a wide range of viral digital creations, ranging from exclusive collectibles to memes. RTFKT makes use of the newest technologies in the virtual space such as AR, blockchain authentication, NFT, and in-game engines. Its ability to deliver popular sneaker designs is even compounded by its long experience in manufacturing unique footwear.

RTFKT partnered with Nike, launching a virtual pair of sneakers. This long-awaited project shows that Nike, like many other luxury and well-known brands, wants to be a part of the metaverse journey in China, launching their NFT collections on this secondary market.

As a demonstration of its design prowess, RTFKT released a special, virtual sneaker design that is made of pure gold. The catchy features of the sneakers and the timeliness of its launch during the Lunar Chinese New Year holiday ended up giving the design a commanding price of $28,000 on the Treasureland digital public auction.

The rising NFT market in China is prompting popular luxury brands to adopt and create their own NFT products through partnerships and collaborations. A recent example is a collaboration between the luxury brand LVMH and the popular game League of Legends. Co-branded skins for the roster of characters were sold in the game, mutually benefitting both companies.

Contact us to get to know more about NFT opportunities in China

The metaverse and virtual reality market are growing fast in China. NFTs from luxury brands, metaverse shops, virtual fashion shows are gaining popularity, and Chinese consumers are excited to be part of this new trend. Being a very tech-savvy society, they are eager to experiment and learn more about NFTs, so they are keen on discovering new NFT and metaverse releases of their favorite brands.

We can help you understand the metaverse world in China and see how can we help you jump on this trend with your brand. With more than 10 years of experience, we have the needed know-how and we will be glad to help you succeed in China.

Don’t hesitate to leave us a comment or contact us to learn more about NFT marketplaces, NFT transactions, virtual reality, and NFTs in China in general. Let’s keep in touch!