The global personal luxury goods market is expected to grow from 2,406 billion RMB in 2018 to 3,117 billion RMB in 2025 (a roughly 4% annual growth rate); The luxury market in 2025 will, however, be significantly different from what it was in 2012.

According to McKinsey, the percentage of purchases from Chinese customers will have doubled from 19% to 40% of the personal luxury goods market.

Every year, WalktheChat compiles the best data from digital luxury analysts into one report packed with insights. This year we combined data from McKinsey, Bain, BCG and Tencent in order to give you a snapshot of the Chinese Digital Luxury market as of 2019.

These estimates closely match the data obtained by other consulting companies. According to Bain Consulting, Chinese customers make up 33% of global luxury purchases as of 2018.

How do luxury buyers choose brand?

The luxury market remains very centered around offline experience. In a McKinsey survey, offline store experience is the most frequently mentioned source of information for luxury buyers.

Customers however mention that WeChat messages from the store or salesperson are an important driver of their purchasing decisions.

Although offline stores are an important influence on the final purchasing decision, digital marketing plays a crucial role in the discovery of new brands.

Conclusion

The Chinese luxury market is currently undergoing major shifts, from the migration of customers from offline to online (especially in smaller cities) to the increasing percentage of consumers buying directly from mainland China.

Although this data can seem abstract, it is nonetheless essential in order for brands to understand who are their target customers and what they want.

According to a joint study by BCG and Tencent, 54% of the discovery touchpoints happen online: either via social media, other digital channels, or online word-of-mouth.

Read the full report here