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Luxury Consumer Growth Continues to Expand Beyond China’s Most Cosmopolitan Cities

Tier-1 Cities like Shanghai Beijing and Guangzhou on average have citizens with greater than average wealth vs. the rest of China. However the most wealthy Chinese tend to live in Tier-2 cities; and growth of netizens able to afford luxury products is higher in Tier-2 and below cities as well. Since many brands do not have physical retail presense in these cities, it makes adoption of ecommerce and scalable educaiton through digial platforms critical to sales growth.

Growth of Luxury Consumers Mostly Outside Tier-1

Growth of Luxury Consumers Mostly Outside Tier-1

The vast majority of growth for consumers is outside Tier-1 cities like Shanghai, Beijing, Guangzhou and Shenzhen.

Growth in Luxury Search Terms Highest in 3rd Tier Cities

Growth in Luxury Search Terms Highest in 3rd Tier Cities

While total volume of luxury goods sales in 1st tier cities is higher, the growth in luxury demand is happening in 2nd and 3rd tier cities. Reaching these cities via ecommerce is key.

Luxury Consumers Prefer In-Store Purchase

Luxury Consumers Prefer In-Store Purchase

Customers still prefer to purchase products from luxury stores. Luxury brands should consider a “trunk show” solution to regions that they do now have a physical retail presence.



This post first appeared on Digital And Social Media News – SocialbrandWatch, please read the originial post: here

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Luxury Consumer Growth Continues to Expand Beyond China’s Most Cosmopolitan Cities

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