What: Gusto Luxe draws the 6 key trends going on in the Chinese market when it comes to Luxury.

Why it is important:  Half of the Luxury market will rely on China by 2025. It is therefore highly probable that luxury brands will integrate China at the core of their product and communication strategies, which might by ricochet impact the rest of the world and non-Chinese retailers.

Gusto Luxe, a consulting company based in China helping luxury brand addressing this particular market, shares its view on the development of the Chinese luxury market, which will become the world’s largest luxury  market by 2025. Specific mechanisms currently at work, such as the borders closure due to the Covid-19 pandemic or the “common prosperity” policy, might not make this particular market easily readable, which is the reason why Gusto Luxe aims at providing a few keys to understand it:

• Health is the new wealth, and this was even further accelerated by the pandemic. As a consequence, this should favor specialized brands, or the ones creating dedicated collection for sportswear, including winter sports, as this is the new rage in China,
• Since borders are going to remain closed until the end of 2022, it is expected that local tourism is going to boom, leading to a hunger of experiences and discovery. This should favour outdoor, as well as new stores in unusual locations,
• The Chinese pride is also expected to increase. Authentic content creation will be key.
• The Chinese market is also very advanced compared to other ones; livestreaming, KOLs including virtual ones, NFTs… all should be part of luxury brands strategies in the country
• The goal of sharing prosperity will also open up new opportunities for brands, especially for the ones catering for the mid-part of the desired “olive-shaped” society,
• Purpose will remain central to the younger buyers as well.

Key trends in luxury in china