Lecture: The Global Chinese Consumer and Luxury Brands

Introduction

• Global Chinese Consumer: A specific group with international exposure and experience.
• Importance for luxury brands due to unique anthropological and cultural features.
• The focus is on how China intersects with the world in the medium-to-long run.

Four Typologies of Chinese Consumers

1. Domestic Travelers:
   • Majority living and traveling within China.
   • Post-pandemic, the affluent will likely travel internationally first.
2. Nomadic Chinese:
   • Young generation living internationally for education, work, or travel.
   • Includes international students and professionals working for both international and Chinese companies.
   • Often have multiple homes and international networks.
3. Overseas Chinese:
   • Immigrants post-2000 who have chosen a different lifestyle abroad.
   • Maintain connections through the Chinese digital ecosystem.

Key Consumer Groups for Luxury Brands

• Frequent Outbound Travelers and Nomadic Overseas Chinese:
  • Chinese by heart, international in footprint and mindset.
  • Important for luxury brands to build brand desirability and equity.
  • They act as subcultural bridges between China and the world.

Characteristics of Global Chinese Consumers

1. Purchase Power:
   • More affluent due to frequent travel.
   • Represent a small percentage (9%) of Chinese with passports.
2. Global Mindset:
   • Travel influences personal and professional development.
   • Openness to new experiences and cultures.
3. Maturity in Luxury Perception:
   • Evolving from status symbols to self-realization and value creation.
   • Style, quality, and experiences are essential.
4. Trendsetters and Change Agents:
   • Influencing Chinese society through innovation and new mindsets.
   • Example: Startup "Know Yourself" by international students.

Key Topics for Luxury Brands

1. Individuality:
   • Luxury is about personal taste and pleasure.
   • Global Chinese consumers appreciate individualism while understanding cultural conformity.
2. Diversity and Inclusion:
   • Beyond HR, at the core of luxury brand purpose.
   • Embracing multiple perspectives and ideas.
3. Sustainability:
   • Important evolving trend in China.
   • Efforts to give back to nature and future generations.

Conclusion

• Global Chinese Consumers should be a priority for luxury brands.
• They resonate with brand values and embody sophistication.
• Requires strategic prioritization and collaboration across teams.
• Their influence may shape the future of luxury in Asia and globally.