LUXURY IN CHINA: Get Rich Is Glorious

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Summary of Trendbuero's luxury research. Understand why Chinese consumers buy luxury and what that all means for brands, products and services.

Text of LUXURY IN CHINA: Get Rich Is Glorious

  • TO GET RICH IS GLORIOUS Being rich a state of mind www.trendbuero.com >> 1
  • September 2008, Beijing TO GET RICH IS GLORIOUS Being rich a state of mind Trend Insight Report www.trendbuero.com >> 2
  • The money is there. Glen Murphy, managing director at AC Nielsen in Shanghai 100 million Chinese luxury consumers. Source: Morgan Stanley, 2006 Introduction www.trendbuero.com >> 3
  • The money is there. Glen Murphy, managing director at AC Nielsen in Shanghai Already the third largest luxury market in the world. Introduction www.trendbuero.com >> 4
  • The money is there. Glen Murphy, managing director at AC Nielsen in Shanghai The world's top luxury market by Source: Goldman Sachs, 2007 2015. Introduction www.trendbuero.com >> 5
  • To Get Rich is Glorious 115 US$-billionaires in 2007... Introduction www.trendbuero.com >> 6
  • To Get Rich is Glorious The only country where consume more luxury than . Introduction www.trendbuero.com >> 7
  • To Get Rich is Glorious The worlds youngest luxury market, with in their 30s. Introduction www.trendbuero.com >> 8
  • To Get Rich is Glorious $=??? Introduction www.trendbuero.com >> 9
  • Chinese on the move Whats Next? Introduction www.trendbuero.com >> 10
  • Chinese on the move The next generation... Introduction www.trendbuero.com >> 11
  • Chinese on the move Introduction www.trendbuero.com >> 12
  • Chinese on the move Introduction www.trendbuero.com >> 13
  • Chinese on the move Introduction www.trendbuero.com >> 14
  • Chinese on the move Introduction www.trendbuero.com >> 15
  • Chinese on the move ... they will look and buy different. Introduction www.trendbuero.com >> 16
  • Chinese on the move But how? Key Questions www.trendbuero.com >> 17
  • If you are looking for quick profits, don't go to China. It takes a long time to be profitable. Nigel Luk, Cartier's managing director for China To identify the potential for your brand behind these over- whelming figures, you need to understand what luxury buyers try to achieve and sell them what they need to succeed. Introduction www.trendbuero.com >> 18
  • Research is based on desk research, 24 focus groups, in-depth interviews as well as expert interviews. Therefore CIMG and Trendbro investigated upcoming needs and rising desires of Chinese luxury consumers as well as its impact on Chinas luxury market. Introduction www.trendbuero.com >> 19
  • Analyze changing life drivers and desires of Chinese luxury consumers to identify upcoming consumer requirements towards luxury brands. Which social changes shape the life drivers and motivations of Chinas consumers? Which new consumer needs will challenge Chinas rising luxury market? How to address to these needs with products, marketing and services? Key Questions www.trendbuero.com >> 20
  • Trend Insight Report: To Get Rich is Glorious 1. Peoples Republic of Change 2. Luxury in a Shift 3. Faces of Luxury 2010 Agenda www.trendbuero.com >> 21
  • The future of luxury is based on a fundamental change of social values from the past to the present. Within the last 60 years Chinese consumers underwent two major value shifts, which significantly impacted their lives, beliefs and buying habits. Peoples Republic of Change www.trendbuero.com >> 22
  • Three decades of communism were followed by three decades capitalism. Now China slowly transitions into three decades of consumerism. Peoples Republic of Change www.trendbuero.com >> 23
  • The Chinese market is influenced by three generations, who possess contrary ideals. 1. Baby Boomers 2. Generation X 3. Generation Y Peoples Republic of Change www.trendbuero.com >> 24
  • Baby Boomers (1950 - 1964): Dominated by political figures and movements. They respond to politics and believe in heroes. Peoples Republic of Change www.trendbuero.com >> 25
  • The Song of Lei Feng romanticizes selflessness which shaped the whole generation until the 80s. Serving the people Between the Chinese liberation in 1949 and the opening in 1978 Chinese consumers were mainly faced with instability and economical chaos. The Great Leap Forward, the Famine and the Cultural Revolution threatened China for three decades. In that period, people lost their identity, their privacy and even their right to an education. The only things that couldnt be banned were their dreams. Deficiency and limitation of goods shaped daily life. Even money could not open all doors. Political power was the only accepted currency during this time. Peoples Republic of Change www.trendbuero.com >> 26
  • This generation lost its creativity with the Cultural Revolution. Following and imitating others was the only way for social development. Money is power and power is everything The baby boomers are hopeless romantics and fiercely nationalistic. While their romanticism of the Chinese Revolution might have turned into cynicism due to the Cultural Revolution, their nationalism remained undiminished. The baby boomers are frugal people, trained not to desire material goods and creaturely comfort. Nowadays some of them are the richest people in China. They splurge to impress. Money is power to them, and power is everything. Today, baby boomers are still the policy-makers and the parents who shape the mindset of the next generation. Peoples Republic of Change www.trendbuero.com >> 27
  • Generation X (1965 - 1979): A generation of realists woke up after Tiananmen Square protests, who believe only in themselves. Peoples Republic of Change www.trendbuero.com >> 28
  • In their young adulthood only some Western movies where available. But Pretty Woman came to China and libarated the Chinese dream. First come, first serve Generation X is influenced by the liberal spirit of the 80s, growing-up while China transitioned from a planned economy to market economy. These entrepreneurs lived the Chinese dream. But after 1989 they underwent a value shift from an idea of collective wealth to a focus on self, driven by political reforms as well as the privatization of Chinas economy. New business opportunities replaced their enthusiasm for society and turned their hearts to a single purpose: make money, and make lots of it. They went from 20 years of depreciation and food coupons to over-supply. From 1,300 private car owners in the entire nation to three million in Beijing alone. Peoples Republic of Change www.trendb