Luxury goes local as Chinese shoppers gravitate towards home-grown brands
- 74 per cent of affluent Chinese consumers aware of at least one Chinese designer, according to report by Ruder Finn Group and CSG
- Chinese companies have been investing in R&D, quality control with the aim of shaking off the image of being ‘cheap’, says designer
Affluent Chinese consumers have for years shown a preference for global, well-known brands and labels. But with growing sophistication in tastes and a penchant for unique styles, the well-heeled are now increasingly gravitating towards high-end Chinese designers.
“While global forces will continue to impact China’s luxury market, domestically there’s this whole new wave [of Chinese designers] that is coming through and is transforming the market,” said Simon Tye, executive director of Hong Kong-based market research company Consumer Search Group (CSG).
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In a report released last month along with US and China-based public relations company Ruder Finn Group, CSG found that 74 per cent of affluent Chinese consumers are aware of at least one Chinese designer, and 45 per cent intend to buy more Chinese designs over the next 12 months.
According to report, titled “The 2019 China Luxury Forecast”, a shift in purchasing attitude from buying to “show-off to outsiders” to a “reflection of personal taste” is evident in 76 per cent of Chinese consumers. These respondents said they buy luxury items that reflect personal taste, up by about 30 per cent since 2012, according to the report.
According to Mintel China, another market research company, niche luxury brands are particularly popular among women between the ages of 20 and 24, who are single and have a postgraduate or higher degree.
Karen Zhang, 24, a banking professional from Beijing, said: “I still like my Gucci and Dior bags, but nowadays I like to explore luxury brands that have interesting stories and doesn’t shout extravagance. I also like to buy products by Chinese brands that have a unique twist.”
The growing interest in Chinese designers is illustrated by a fivefold increase in the number of such brands featured by Hong Kong-headquartered luxury goods store chain Lane Crawford in recent years, according to strategy consultancy OC&C. Comme Moi, a brand founded by Chinese model Lu Yan, is among the fastest growing brands in Lane Crawford stores in China.
