Chinese Consumer Report 2012 - Luxury - Roland Berger

Defining Chinese luxury brand consumers
The capacity and increasing speed of the global luxury market
[One billion euros]
Other countries
Other Asia-Pacific
countries
Japan
Chinese mainland
America
Europe
Who are Chinese luxury brand consumers?
CAGR
New market
capacity
New market
proportion
Source: Roland Berger Analysis
Gender distribution Age distribution Household income distribution
Chinese consumers are displaying a newfound
and growing interest in luxury goods. The
wealthy and elite are eagerly embracing the
culture of the luxury market and wish to own
the same brands that are popular in developed
economies. This has not escaped the notice of
mainstream luxury brand producers. In recent
years they have seen their products become
a feature of daily life in China to a moderate
but steadily increasing degree. If luxury goods
makers are to capitalize on this trend they
should move quickly to acquire and develop
a deeper understanding of Chinese luxury
consumers. As Chinese luxury consumers are
expected to account for 40% of the new luxury
market globally between 2010- 2015, it is an
opportunity that few can afford to miss.
Male
Female
China
Source: 2011 Roland Berger’s Chinese Luxury Consumers Survey (n=1,393), Germany 2010 Survey; Roland Berger analysis
Archetypes of Chinese luxury consumers
Archetypes:
Western
European
Consumers
Era leader
Wealthy second
generation
Western
European
Consumers
China
highest
20%
medium
30%
lowest
50%
Ambitious elites Savvy investors
Western
European
Consumers
Stylish whitecollars
China
Gift buyers
Buyers of luxury goods in China are younger
than buyers in mature markets. This can
be attributed to a large degree to China's
demography. China has a relatively young
age population and wealth creation has been
mostly concentrated in the young generation
since the country's social and economic
reform. A further differentiating factor,
however, is that Chinese luxury consumers are
often found in the top social status group as
opposed to the more general across-the-board
distribution that occurs in mature markets.
Archetypes
% Share ~25% ~30% ~10% ~5% ~10% ~20%
Social profile
Psychological
traits
Behavioral
traits
> private business
owners, corporate
executives
(foreign, stateowned,
private)
> 25 to 40 years
old
Pursue
>worship
>wisdom
>self-cultivation
>follow others
> recognize top
brands
> young people
from the second
generation of
the wealthy
and officials,
including “rich
men’s wives”
> 20 to 35 years
old
Pursue
>innovation
>self-confidence
>passion
> are independent
> have strong selfawareness
> middle managers
of multinational
or state-owned
companies,
professionals,
entrepreneurs
> 25 to 35 years
old
Pursue
>enterprise
>passion
>challenge
> have strong selfawareness
> have a good
understanding of
luxury goods
> real estate
speculators,
stock traders,
freelancers, the
unemployed
> 25 to 40 years
old
Pursue
>trendiness
>individuality
>luxury
> have fluctuating
consumption
capacity
> focus on
popularity
> fresh to the
workforce, have
stable income
higher than their
peers
> 20 to 30 years
old
Pursue
>beauty
>luxury
>fashion
> have strong selfawareness
> have a good
understanding of
luxury goods
> lack of distinctive
features
Pursue
>worship
>respect
> have a low
purchasing
frequency
> focus on
popularity
Roland Berger experts segmented Chinese
luxury consumers into six archetypes
based on their physical, psychological and
behavioral characteristics. The six archetypes
are Era Leaders, Wealthy Second Generation,
Ambitious Elites, Savvy Investors, Stylish
White Collars and Gift Buyers. An in-depth
appreciation of the uniqueness of these six
groups can assist producers of luxury brands
to devise more precise brand development
strategies for the Chinese market.
Source: 2011 Roland Berger’s Chinese Luxury Consumers Survey (n=1,393), industry interviews; Roland Berger analysis
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