China's Generation Z (born between 1995-2002) is an increasingly important demographic for luxury brands, one that will account for 46 percent of purchases in the market by 2025, according to Bain.
The latest report from Agility group conducted interviews with more than 500 Gen-Zs from China, 64 percent of whom come from the first-tier cities like Beijing, Shanghai, and Shenzhen, while 36 percent of respondents come from second-tier cities. All of those interviewed fit into an “affluent demographic” based on their monthly household income of more than 4,358 (RMB 30,000).
One surprising statistic was that 42 percent of this candidate pool has at least one sibling -- a growing demographic despite China's one-child policy.
China's Gen-Zers have a somewhat contradictory view of themselves. On one hand, they can be Buddha-like, meaning they want to resist the lure of material goods and shy away from the rat race, but on the other hand, they also refer themselves as the “moonlight clan”: a generation that frequently makes impulsive purchases and lives paycheck to paycheck.
Meanwhile, their appreciation for luxury goods has certainly evolved compared to their predecessors. Gen Zers' luxury goods are used more for their own enjoyment and self-expression rather than as a means of showing off wealth, the report noted. 77 percent of respondents said that “luxury products are like art pieces,” while 75 percent agreed with the statement “I don’t think luxury has to necessarily be material.”
Keeping that in mind, here are the top brands (according to the Agility Group's report) that Gen-Z feels represent their values: