Alimama-Insights into China Online Consumption of Luxury Goods
【Posted on: 2021 March】
In the luxury consumer market, 74% of people with medium and high spending power potential are entry-level consumers with slightly lower purchasing power. Luxury goods purchased by these group of consumers is done beyond their means and are fans of fashion and entertainment. As for groups with high consumption potential, they are mostly social elites, white-collared workers and professionals who enjoy the finer things in life and are fashion conscious and relate well with content consisting of influential individuals. Their purchase of luxury goods has become the “consumption inertia” in their life.
Key insights from the report:
- People with high consumption of luxury goods: they prefer to purchase by installment and purchase on behalf of others
- High potential consumers in luxury goods: Preferred Ole Store or discounted goods
Luxury consumption preference
- Brand influence, festival scenes, and product styles are all the focus of luxury consumption, especially for potential groups with high consumption power, the limited goods are one of the stimulus factors, but the middle &high potential consumers are more likely to be driven by price factors.
According to data, be it high spending power or medium-high spending potential group, male consumers are more likely to give gifts than female consumers. Hence, men are a group worth focusing attention to for brands during the festival.
- KOL is the media carrier of luxury goods. For middle & high-end consumer groups, they pay attention to designers, artists, models, etc. But for high-end consumer groups, they pay more attention to celebrities and KOL.
Consumers with high consumption potential prefer the APPs of pictures or lifestyle and are more interested in information and photography. Consumers with medium & high consumption potential are more interested in video and music content platforms. Therefore, brands may refer to the following APPs for marketing
- High-end consumer power user is interested in: RED (Little Red Book), Netease News, Korean TV, Meitu Xiuxiu, Beauty Camera, Mama, etc.
- High & medium-end consumption power users interested in Youku, QQ Music, Netease Cloud Music, Meetyou, XiaChufang, etc.
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