Why Western luxury brands need to understand China's Gen Z

The luxury market in China is very different to that in the West, in part because of the younger buyer demographic. 

Why it matters

Where Western brands have generally tended to focus on older Gen X or Gen Y purchasers, it’s Gen Z which is important in China: the average age of luxury purchasers is just 29. These consumers are hard-working, optimistic, and ready to reward themselves. 

What Gen Z expects

Writing in Jing Daily, Équité’s Daniel Langer highlights five areas to focus on: 

• Digital innovation: The online retail experience needs to be truly engaging. Too many Western luxury brands are failing to deliver the top-level consumer experience that China’s Gen Z now expects on digital platforms like WeChat. 

• Authentic brand narratives: Western brands can’t simply transplant their existing narratives to China. Without adapting to local sensibilities, these won’t resonate with consumers.

• Social responsibility: China’s Gen Z consumers are quick to hold brands accountable for their societal and environmental impact, so Western luxury brands need to communicate their stance on these issues effectively.

• Celebrity partnerships: Western celebrities generally aren’t as effective as local celebrity endorsement. 

• Personalised offerings: Limited editions can cater to a Gen Z desire for individuality and exclusivity.

Key quote

“[Gen Z] consumers seek more than just products; they want their brands to reflect their values, engage with their culture, and provide a digital-first, personalised experience. Navigating these expectations will be the key to thriving in this promising yet demanding market” – Daniel Langer, CEO of luxury brand adviser Équité.

Sourced from Jing Daily