China’s millennials and Gen Z are now looking beyond luxury brands in favour of lasting, meaningful experiences

This article was originally written by Tamsin Smith for Jing Daily

Two-thirds of high-net-worth Chinese consumers say personal growth is more important than wealth, according to research. For retailers and the travel industry, this report suggests that companies need to offer more than just luxurious goods to entice lucrative top-tier Chinese clients.

The research, spearheaded by HSBC Jade – the bank’s highest membership level – surveyed more than 900 affluent individuals from key markets including China, to gain insight into their thoughts on enrichment, wellness, travel and purpose. Alongside a strong desire for personal growth, in mainland China, 74 per cent of high-net-worth individuals stated that making a positive impact on the world was as important as making money.

According to the report, released on October 21 by HSBC Jade and Scorpio Partnership, the absolute wealthiest Chinese individuals are looking for a holistic consumer experience through which they can grow on a personal level.

Whilst their predecessors were brought up with a desire to establish status through the acquisition of recognisable wealth in the form of luxury brands, China’s younger demographics are different. Those born after 1990 or 1995 – corresponding loosely with Gen Z – have been raised in a culture of developing the self through education, cultural learning, travel and physical well-being. This research solidifies the idea that for the Chinese luxury industry to continue to grow, it can no longer rely on expensive labels and designer products.

Alicia Liu, director at Singing Grass Communications, a business consultancy with a focus on culture and luxury, said: “As the digital savvy, sophisticated millennial generation in China grow up and start to become parents, they are looking for a more fulfilling experience for themselves and the people they care about.

“In my opinion, luxury brands must set out to meet this growing demand and produce an enriching lifestyle solution, rather than simply offer a product. Some of the brands we have advised have managed to build a genuine friendship with key influencers, by helping customers broaden their horizons through a cultural learning experience.”

In response to this, HSBC Jade has launched the “enrich list”, a new bucket list for affluent consumers. Chinese individuals are seeking more fulfilling and enriching experiences, and the list is built on four fundamental pillars: curated adventure, ultimate well being, game changers, and “a purposeful life”.

The list includes experiences such as “find your tribe”, where HSBC Jade’s wealthy clientele can visit the Amazon and discover the Kayapó tribe, from the comfort of an exclusive camp, complete with private chef and host. Another example sees the Sangha Retreat By Octave, by Suzhou’s Yangcheng Lake, cater to wealthy individuals with an immersive retreat combining ancient Chinese traditions with the most up-to-date neuroscience technology.

Marie Tulloch, senior client services manager at Anglo-Chinese marketing consultancy Emerging Communications, explains that for product-focused brands looking to benefit from the “experience economy”, there needs to be a significant shift away from brand ostentation.