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Affluent Chinese consumers are projected to make up to 44 percent of the global luxury consumption across the globe by 2025, according to McKinsey & Company. This would double their current level of spending to one trillion yuan (US$147 billion),
The consulting company, which issued a  Chinese-language industry report on June 13, also expects the total market share of the global luxury market to reach 2.7 trillion yuan (US$397 billion) in 2025, which will be mainly driven by China.
In 2016, Chinese buyers from rich households (7.6 million) spent over 500 billion yuan to purchase nearly one third of luxury goods in the world. The average spending from these buyers on luxury products was 71,000 yuan, which doubled that of a household in France or Italy. Since 2008, the number of Chinese households that can afford luxury products has doubled thanks to the increase in their disposable income and the variety of shopping channels.
McKinsey noted that, in recent years, these customers have become the established luxury consumers. With Chinese shoppers maturing, it?s imperative for luxury brands to shift their focus from attracting new clients to adopting strategies to build and retain the loyalty of their existing ones.
The report highlights the importance of ?word of mouth? in the purchasing decisions of Chinese consumers. Receiving positive reviews from friends and family will be the most important factor influencing the choices of luxury shoppers.
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