Chinese consumers keen to 'spend more' on luxury items, survey finds
As many as 52 percent of Chinese respondents would "spend more" on luxury items, well beyond the pre-pandemic figure of 44 percent, according to the 2023 China Luxury Forecast.
"Consumer confidence on the Chinese mainland has surged and exceeded the pre-pandemic level, and the vitality of the market is expected to be restored within the year," commented Simon Tye, executive director of marketing research firm CSG Hong Kong.
The proportion of respondents who expect to "spend less" fell back to 10 percent, the same as the data before 2020, according to the survey conducted from December 2022 to January 2023, and covering 2,000 respondents living on the mainland, with average annual household income of 1.4 million yuan (US$197,465).
Over the next 12 months, Chinese respondents showed significant preference to spend more on specific categories like luxury clothing, luxury travel and fine dining.
"Shanghai still remains one of the most important luxury markets in China and many brands are rebounding well beyond expectations. We anticipate a general recovery starting in the third quarter this year," said Gao Ming, senior vice president and managing director of Luxury Practice China at Ruder Finn Group.
"The resumption of overseas travel may put pressure on the growth of domestic luxury consumption, so it's necessary for luxury brands to further narrow the price gap between the Chinese market and foreign markets, and provide attractive value-added services," he added.
Luxury fashion brands by Chinese designers also won positive feedback, with 54 percent of survey respondents saying they would increase their purchase of Chinese fashion brands in the next 12 months, citing major factors, including "Chinese elements," "charisma of the designer," "unique design" and "value for money."
As many as 78 percent felt it's important to embed Chinese elements in luxury products or services.
Those who chose online channels for luxury purchase also climbed to 75 percent from 69 percent a year ago.