Millennials inject new vigor into China’s luxury market
A jewelry counter in Beijing. China’s jewelry sales shot up 27% in 2017.
Purchases of high-end cosmetics and jewelry grew nearly 30% last year
HONG KONG — China’s luxury spending jumped by a fifth in 2017 as rising incomes and the spread of convenient payment technologies pushed younger shoppers toward the high end.
Mainland shoppers shelled out an estimated 142 billion yuan ($22.5 billion) for luxury goods in 2017, according to American consultancy Bain & Co., for the highest growth rate since 2011.
While growth in luxury spending in Japan and elsewhere has been linked to the wealth effect that accompanies rising stock prices, this does not seem to be the driving factor in China. Rather, it was “Chinese millennials” aged 20 to 34 who “helped accelerate luxury spending here, particularly in the last year,” according to Bruno Lannes, a partner in Bain’s Shanghai office. Products aimed at women performed best of all. Cosmetics, perfume and personal care products grew 28%, while jewelry rose 27%. High-end women’s clothing increased 24%. The ubiquity of smartphones has apparently made millennials more attuned to the latest fashion trends around the world, and consumption of branded goods by this age group is on the rise, creating a new consumer class that goes beyond traditionally wealthy households.
Millennials’ appetite for luxury seems even to extend to major purchases. Globally, the average age of people buy...
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