A 2020 report claimed that by the year 2025, China will be responsible for half of all luxury goods purchases worldwide. Two years after this publication, data shows that the trajectory of purchasing is very much on track to meet its prediction. Experts expect China to take its place as the world’s largest luxury personal goods market within the next three years.
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Despite the continued impact of the pandemic, the Chinese luxury personal goods market demonstrated double-digit growth in 2021, increasing by 36 percent year-over-year. This shift in attention toward local Chinese consumers amongst luxury businesses has sparked the development of fresh digital engagement methods. Thus, changing the dynamic between luxury customers and brands.
The biggest luxury brands in the world are pushing the envelope in China by diversifying into virtual and metaverse mediums, utilising live formats to foster engagement and connection in real-time, and continuing to develop novel definitions that deviate ever more from the “traditional” luxury brand lifestyle and experience.
Not only are the trends we see in this market relevant to the brands seeking to win the hearts and minds of Chinese consumers – but they also point towards luxury’s future place in the lifestyles of up-and-coming generations around the world. Where China leads in technological advances and innovation and bold, new experiences, others often follow.
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While challenging economic conditions and the continued effects of COVID are felt by all, luxury brands are creating vibrant, truly culture-defining moments to foster closer connections with their consumers.