Dynamic Journeys: China’s Luxury Shoppers at Home and Abroad
BoF’s guide to the evolution in how and where Chinese luxury consumers are shopping amid an increasingly dynamic domestic landscape and how global brands and retailers can reshape their product and service offerings to bolster long-lasting relationships with Chinese customers both at home and abroad.
Chinese luxury fashion and beauty is on the road to recovery, with sales forecast to surpass pre-pandemic levels in the years ahead, to reach $131 billion by 2027. Amid this growth, Chinese luxury consumers are changing, in terms of both where and how they make purchases.
In “Dynamic Journeys: China’s Luxury Shoppers at Home and Abroad,” BoF Insights examines the primary levers for change impacting the luxury market within mainland China and abroad. BoF Insights forecasts that by 2027, two-thirds of luxury purchases will occur within mainland China and one-third outside — a balance that marks a complete reversal from pre-pandemic times.
Much of this shopping will take place against a backdrop of a widespread embrace of domestic tourism that began during the nearly three years of closed international borders under zero-Covid policies. Though international travel is not off the table, global fashion players need to revamp their playbooks as Chinese shoppers internationally have higher expectations around quality, service and unique experiences that make shopping visits more memorable.
BoF Insights’ report offers a robust analysis for global brands and retailers that is informed by 15 executive interviews, proprietary consumer surveys and market sizing, social media sentiment analysis, and brand heat and wholesale transaction data from external data providers.
Length: 93 pages File Format: PDF
Price:
£2,495.00
Table of Contents
Six Key Shifts Reshaping Fashion and Beauty Growth
What Executives Tell Us About Demographics and Culture
What Executives Tell Us About Products and Channels
Historical and Forecasted Global Luxury Spend by Chinese Customers Within and Outside of Mainland China (2009-2027)
Mainland China and Hong Kong’s Market Share of Global Luxury Sales (2019-2027)
Mainland China and Hong Kong’s Luxury Market Sizes and Underlying Trends (2018-2027)
Three Primary Factors Driving Mainland Repatriation of Luxury Spend
Impact of China’s Five Year Plan (for 2021-2025) on Luxury Brands and Retailers
Performance of China’s Reopening and Projections for Affluent Population Growth to 2030
Timeline of Digital Innovations and New Store Openings in China by Global Luxury Brands
Luxury Spend by Chinese Customers Outside of Mainland China (2009-2027)
Percent Breakdown of Luxury Spend by Chinese Customers Within and Outside of Mainland China (2019-2027)
General Customer and HNWI Consumer Sentiment (Personal and Family Health and Finances)
Average Order Volume and Unit Price Wholesale Transaction Data for China-Based Retailers vs Rest of World (Jan. - Apr. 2019 vs Jan. - Apr. 2023)
General Customer and HNWI Preferred Social Media Platforms for Luxury Fashion and Beauty Inspiration
Top Social Media Platforms by Media Impact Value (MIV) in 2019 vs 2022
General Customer and HNWI Preferred E-Commerce Platforms for Buying Luxury Fashion and Beauty Products
Mainland China Luxury Sales by Channel (2009-2027)
General Customer and HNWI Luxury Fashion Spend in the Last 12 Months
General Customer and HNWI Intentions to Spend by Fashion Category in the Next 12 Months
General Customer and HNWI Luxury Beauty Spend in the Last 12 Months
General Customer and HNWI Intentions to Spend by Beauty Category in the Next 12 Months
General Customer and HNWI Preferred Luxury Brand Traits
Importance of Duty-Free Shopping to General Customers and HNWIs
General Customer and HNWI Intentions to Spend on Luxury Fashion and Beauty by Geography in the Next 12 Months
Social Media Sentiment of Domestic vs International Travel
General Customer and HNWI Intentions to Travel Domestically in the Next 12 Months
Top Planned Domestic Travel Destinations in Next 12 Months for General Customers and HNWIs
Hainan Market Dynamics and Duty-Free Sales to 2025
General Customer and HNWI Sentiment for Luxury Shopping in Hong Kong, Hainan and Macau
Hong Kong Luxury Market Sizes (2009-2027)
General Customer and HNWI Intentions to Travel Internationally in the Next 12 Months
Top Planned International Travel Destinations in Next 12 Months for General Customers and HNWIs
Spending by Chinese Outbound Tourists vs Number of Outbound Trips (2018-2027)
General Customer and HNWI Budgets to Buy Luxury Fashion and Beauty Abroad in the Next 12 Months
General Customer and HNWI Luxury Fashion and Beauty Gifting Budgets in the Next 12 Months
General Customer and HNWI Favourite Luxury Fashion Brands to Buy Abroad
General Customer and HNWI Favourite Luxury Beauty Brands to Buy Abroad
General Customer and HNWI Likelihood to Buy Luxury Brands Abroad vs Within China
General Customer and HNWI Motivations for Buying Luxury Fashion and Beauty Abroad
Price Differences for General Customer and HNWI Favourite Luxury Brands in mainland China vs France
Delivering Continuity of Service to Chinese Customers at Home and Abroad
Opportunities and Challenges for Courting Luxury Chinese Customers Abroad
General Customer and HNWI Intentions to Shop via Daigou in the Next 12 Months and Top Countries, Categories and Brands for Daigou Shopping
Opportunities and Challenges for Courting Luxury Chinese Customers Within China
General Customer and HNWI Sentiment on Luxury Counterfeits
Impact of Chinese KOLs on Luxury Sales
Top Luxury Brands’ Engagement With Chinese Celebrity KOLs
Top Luxury Brands’ Growth in Media Impact Value (MIV) in Q1 2019 vs Q1 2023
Top Luxury Brands’ Media Impact Value (MIV) During Chinese New Year
General Customer and HNWI Sentiment on Logos and Wholesale Transaction Data on Logo-Based Products for China-based Retailers
Entry Requirements and Travel Context for Top International Destinations for Chinese Tourists
Why Buy this Report
Analyses the luxury shopping behaviour of Chinese customers at home and abroad with a deep focus on mainland China and Hong Kong, which together will account for about 20 percent of global luxury sales by 2027
Assesses critical macro-level trends impacting China’s domestic luxury market, such as government initiatives promoting domestic consumption, a growing affluent consumer base and increasingly attractive local offerings after international border closures due to the Covid-19 pandemic
Features proprietary research surveying both nationally representative and HNWI Chinese consumers, revealing their shopping journeys from inspiration to purchase; current and future fashion and beauty budgets including local spend compared with spend while travelling abroad; favourite luxury fashion and beauty brands, and the top domestic and international travel destinations planned for the year ahead
Provides executive perspectives on customer behaviour along with pricing strategies of brands and retailers, and the digital and physical retail landscape in mainland China and Hong Kong compared to the rest of the world
Research Inputs
A proprietary general consumer survey that is nationally representative of the 18+-year-old, online population in China (N = 1,008)
An Altiant LuxuryOpinions® survey of affluents and HNWIs (with investable assets worth a median value of approximately $1.5 million to $2 million) conducted on behalf of BoF Insights in China (N = 100)
15 interviews with founders, CEOs and other senior executives from luxury brands and retailers, consultancies, and experts from e-commerce companies and third-party data providers
Market sizing data from Euromonitor International
Social media sentiment analysis on daigou shopping and domestic and international travel from Quilt.AI
Brand marketing and Chinese key opinion leader (KOL) performance data from Launchmetrics
Wholesale transaction data from Joor
Featured companies include but are not limited to: Bottega Veneta, Burberry, Chanel, Dior, Dolce & Gabbana, Farfetch, Fendi, Gucci, Hermès, JD.com, La Mer, Lane Crawford Joyce Group, Louis Vuitton, Prada, Ralph Lauren, Sisley Paris and Tmall Luxury Pavilion
