Chinese buyers have long been known for their passion for luxury goods, with a particular focus on status symbols and well-known luxury brands. However, as the market evolves, luxury players are now turning their attention to the next generation of shoppers: Gen Z. Born from 1997 onward, this cohort of consumers has different preferences when it comes to luxury compared to their millennial and Gen X counterparts.
One key aspect that sets Gen Z apart is their focus on craftsmanship. Unlike their Western counterparts, Chinese Gen Z shoppers are less concerned about flashy logos and labels, prioritizing instead the perceived value of an experience or the story behind a luxury item. According to trend forecaster Jien Goh, Gen Z buyers are more interested in the craftsmanship of items and how the emotions or story associated with the brand can be reflected in the products they purchase.
Brands that have successfully attracted Gen Z buyers have developed intricate stories about their brand and the wearer, moving away from a product-focused approach to a more client-centric one. For example, Gucci has struggled in China because it has maintained a product-focused strategy rather than focusing on building a strong emotional connection with its customers.
In addition to craftsmanship, sustainability and slow living are also trending among Gen Z luxury shoppers in China. There is a growing desire for mindful, slower-paced living and a focus on wellness and longevity as the ultimate markers of luxury. This trend, known as the “rural revival,” reflects a shift towards incorporating values into purchasing decisions and choosing items that enhance lifestyle experiences rather than just material possessions.
Furthermore, Gen Z consumers in China are moving away from flashy logos and overt displays of wealth. Influenced by China’s crackdown on online displays of wealth and a desire for more muted representations of luxury, Gen Z shoppers are embracing a trend known as “laoqianfeng,” which emphasizes finer materials, muted colors, and natural aesthetics over brand logos.
Another factor influencing Gen Z’s purchasing behavior is the phenomenon of “luxury shame.” This concept, observed by analysts at Bain, refers to a desire to downplay overt displays of opulence during times of perceived financial crisis. As a result, Gen Z consumers may be more selective about how they spend their money and more inclined towards a rational approach to luxury consumption.
Finally, Gen Z in China is also known for mixing luxury items with fast fashion pieces to create a unique style that reflects their individuality. This approach allows them to carve out their own fashion identity and shop where they feel most comfortable, blending high-end luxury with more accessible fast fashion brands.
In conclusion, as Chinese buyers continue to drive the luxury market, brands must adapt to the changing preferences of Gen Z consumers. By focusing on craftsmanship, sustainability, subtle luxury, and a mix-and-match approach to fashion, luxury players can attract and retain the next generation of luxury shoppers in China.
