The rise of China’s brand consumers

Because of the improving living conditions and rising incomes of the middle class in China, Chinese consumers have become highly brand conscious. They are more discerning in their purchasing habits and tend to seek out products that offer a sense of quality and prestige. China’s fashion market is expected to generate a revenue of US$360.4 billion by 2029.

Moreover, Chinese consumers have strong purchasing power for luxury goods in the global market. This is evident from the fact that the luxury market in China draws a significant number of Very Important Customers (VICs), who are willing to pay a premium for luxury products. The trend of attracting VICs has further increased in 2023, indicating the strong demand for luxury goods among Chinese consumers. Apart from luxury goods, fast fashion companies such as Zara and Uniqlo have maintained a good momentum and are still popular among young Chinese consumers.

China’s luxury fashion segment has emerged as a significant player within the country’s fashion industry. Despite a recent dip in the luxury market, with a 10% year-on-year decline in 2022, the first quarter of 2023 has showcased a resurgence, suggesting that China is reclaiming its role as a key growth driver for the luxury goods industry.

With the Chinese economy growing rapidly and the tourism industry thriving globally, the luxury market is poised for continued growth. Wealthy Chinese consumers are better protected from hyperinflation, making the luxury market more attractive to them. As they continue to travel and spend, the luxury market is expected to keep growing.

Source from DAXUE CONSULTING

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