Rhodes'S Public Relations Jointly Released The "2019 China Luxury Goods Report".

A few days ago, one of the famous independent public relations companies, Rhodes public relations and Market Research Center, jointly issued the 2019 China luxury product report in Shanghai, Beijing and Hongkong, respectively.

Statistics, analysis and forecast of the important indicators of the luxury market in mainland China and Hongkong over the past year are made.

It is reported that this is the eighth time that they have published this index externally and to explore the trend of industry development from consumer behavior and preferences.

Up to now, Rhodes's major public relations partners in China include Cartire, Vacheron Constantin, LVMH MOET & CHANDON Hennessy, Hermes, Bentley, Givenchy and so on.

The research sample is composed of 1385 consumers in the mainland and Hongkong, covering more than 130 cities and regions in the country. 1075 of them are from mainland cities and 310 from the Hongkong Special Administrative Region of China.

The average annual household income of mainland respondents is RMB 1400930, and the Hongkong area is 975286 Hong Kong dollars.

Rhodes, senior vice president of Asia and general manager of luxury business in China, said that this year's "China luxury goods report" released 10th anniversary, while the importance of Chinese consumers and the upward trend of luxury goods market has not changed.

Over the past year, digital channels have had an important impact on the dissemination and market changes of the entire luxury industry. The amazing potential of the millennial purchasing power and the change of different market leading brands are important changes in the industry.

In this era of great change, it is difficult for a brand to rely on a single strategy. We need to seize multiple opportunities in time to grasp the changing Chinese luxury consumers.

2018, mainland Chinese consumers spend nearly 240 thousand yuan a year, mainly for clothing and jewelry. Hongkong is about 176 thousand Hong Kong dollars. They are mainly used for high-end tourism consumption.

As for the reasons for purchasing luxury goods, Hongkong consumers value quality of life, while mainland Chinese consumers will pay equal attention to personal taste and quality of life.

This also reflects the growing maturity of consumer attitudes in mainland China.

The main consumer of luxury goods is the younger generation. Among them, the total consumption of the millennial generation (26-35 years old) ranks first, with an average of 254 thousand and 100 yuan per capita.

Z generation (21-25 years old) is more inclined to purchase jewelry, clothing and electronic products.

The millennial generation of Hongkong's comprehensive consumption has topped the list in the past year, but in most sectors, over 46 years of age are more purchasing power.

Under the influence of the global geopolitical economic turmoil, the confidence of Chinese consumers has also changed. Rhodes, executive director of Simon Tye, said: "the index of consumer confidence in mainland China is not obvious in previous years or earlier years (compared with the previous year), but it was flat in 2018 and 2017."

With the formal implementation of the "electricity business law", luxury brands have also adjusted their operational strategies in the mainland market to boost mainland consumers' purchasing power.

In the third quarter of 2018, Tiffany said that mainland Chinese consumers' enthusiasm for buying Tiffany in the mainland continued to rise, while overseas was slightly cold.

Since the second half of 2018, Louis Vuitton has cut the price of some commodities in the Chinese market by 3% - 5%.

In addition, the coverage of free distribution services extended to 12 cities.

In terms of e-commerce, luxury brands are more inclined to cooperate with Tmall and Jingdong than themselves.

The report points out that the impact of digitalization and information channels on luxury brands occupies an important position in the Chinese market. Brand official website, official Facebok home page and official App are the main sources of consumers' access to information.

It is worth mentioning that on the factors that affect the purchase decision, 40% of the consumers in Hongkong mainly come from friends' sharing or recommendation, while mainland consumers value TV ads and newspapers and magazines advertisements. Social media advertising also affects 32% of the respondents.

However, the closed WeChat friends circle and traditional media newspapers and magazines still occupy their third position.

Although the global geopolitical economy is still volatile and Sino US trade conflicts continue, consumers in mainland China and Hongkong still have confidence in consumption in 2019.

46% of mainland Chinese consumers and 32% of Hongkong consumers said they would increase their spending on luxury purchases in the coming year.

More than 5 of mainland Chinese consumers will increase their consumption of electronic products, beauty products and cosmetics and clothing, while Hongkong consumers will spend more than 4 of them on electronic products.