In the luxury consumer market, 74% of people with medium and high spending power potential are entry-level consumers with slightly lower purchasing power. Luxury goods purchased by these group of consumers is done beyond their means and are fans of fashion and entertainment. As for groups with high consumption potential, they are mostly social elites, white-collared workers and professionals who enjoy the finer things in life and are fashion conscious and relate well with content consisting of influential individuals. Their purchase of luxury goods has become the "consumption inertia" in their life.
Key insights from the report:
High potential consumers: prefer to purchase by instalment and purchase on behalf of others
Medium potential consumers: Preferred outlet Store or discounted goods
Luxury consumption preference
Brand influence, festival scenes, and product styles are all the focus of luxury consumption, especially for potential groups with high consumption power, the limited goods are one of the stimulus factors, but the middle & low potential consumers are more likely to be driven by price factors.
According to data, be it high spending power or medium-high spending potential group, male consumers are more likely to give gifts than female consumers. Hence, men are a group worth focusing attention on for brands during the festival.
KOL is the media carrier of luxury goods. For middle & high-end consumer groups, they pay attention to designers, artists, models, etc. But for high-end consumer groups, they pay more attention to celebrities and KOL.
Consumers with high consumption potential prefer the APPs of pictures or lifestyle and are more interested in information and photography. Consumers with medium & low consumption potential are more interested in video and music content platforms. Therefore, brands may refer to the following APPs for marketing
• High-end consumer power user is interested in: RED (Little Red Book), Netease News, Korean TV, Meitu Xiuxiu, Beauty Camera, Mama, etc.
• Medium consumption power users interested in Youku, QQ Music, Netease Cloud Music, Meetyou, XiaChufang, etc.
Download the full report (in Chinese) - Here. For more marketing opportunities to promote luxury goods, talk to us for an in-depth consultation.