Chinese millennials give luxury brands a boost as they earn and spend it all
Bain & Co survey shows that Chinese youth will continue to splurge on big brands, even as the country accounts for 32pc of global luxury sales last year
Global luxury brands have a reason to smile as free-spending Chinese youth ensured a turnaround in their businesses on the mainland.
Sales of luxury goods on the mainland jumped 21.4 per cent to 142 billion yuan (US$22 billion) in 2017, buoyed by Chinese millennials’ aggressive purchases of high-priced cosmetics, clothes and jewellery, according to global consultancy Bain & Company.
Millennials refer to people aged at 20 to 34.
The buoyant growth was nearly six times the year on year increase of 3.5 per cent recorded in 2016.
“Chinese millennials helped accelerate luxury spending here, particularly in the last year,” said Bruno Lannes, a Bain partner. “In response, we are seeing luxury brands repositioning themselves to better reach this influential demographic group, particularly through digital media that we know plays an influential role in shaping younger consumers’ opinions about luxury and fashion.”
