Insights from Jing Daily: How Chinese consumers redefine luxury

As China solidifies its position as a formidable force in the global luxury market, consumer mindsets are evolving — prompting businesses to reassess their models and strategies to remain relevant. A recent panel discussion at the Jing Daily China Luxury Summit in Shanghai explored key shifts among these new luxury consumers. Moderated by David Liu, former Chairman of Weber Shandwick China; the panel included Eric Wang, President and CEO of Yinfinity and Founder of CBNData; Catherine Edme, Chief Growth Officer at Value Retail China; Jimin Lee, founder of the fashion and lifestyle retail platform Translatio and the women's clothing brand J.Cricket; and Lucy Zhou, Senior Director and Head of Marketing for Visa China Market. Titled “The Next Frontier of Jing Zhi: Decoding the New Chinese Luxury Consumers,” the discussion centered on how consumers' perceptions of luxury goods have evolved, with modern Chinese consumers viewing jing zhi (精致), or refinement and exquisiteness, as a continuous pursuit of a luxury lifestyle in the context of modern China. Emotional consumption amid market transformation Over the next five years, Chinese consumer trends are expected to be influenced by the economic environment, technological progress, and international market dynamics, according to Liu. Despite these external changes, consumers are increasingly focusing on their internal experiences and emotions rather than simply purchasing products. Lee highlighted how, over the past 30 years, Chinese consumers have been exposed to new concepts, interests, and brands through overseas travel. This shift from “limited choices” to “a plethora of options” has led them to place greater emotional value on their brand choices, which represent their value identity. Edme discussed how consumers' pursuit of emotional connection challenges brands to provide more memorable retail experiences. Wang noted that the rapid technological acceleration in China’s global retail market poses challenges for brands trying to establish deep connections with consumers. The excessive pursuit of speed, such as through livestreaming, makes it difficult for brands to ensure their physical retail spaces embody their brand values. Lee emphasized the importance of cultural factors in establishing deeper connections by aligning brands' value propositions with the target consumer group’s culture. “Understanding the cultural value of a place is not just about historical knowledge,” Lee said, “but also the emotional history behind it.” “Understanding the cultural value of a place is not just about historical knowledge,” Lee said, “but also the emotional history behind it.” Edme added that creating environments where consumers can “break free” from their fast-paced lives can meet their need to rest and escape daily life. This “slow lifestyle” allows consumers to reflect on and experience the brand’s value before making a purchase. Refining the pursuit of luxury experiences Wang discussed how future consumer demands will become increasingly segmented. “Whether it's high-end consumption, mass consumption, or inclusive consumption,” Wang said, “brands need to develop more refined market strategies, such as specific product lines or marketing plans tailored to different consumer groups.” Edme explained that maintaining a brand’s core values while expanding product lines is crucial. Without this, the increasing use of technology and AI could ultimately undermine the brand. With the advancement of AI, China's consumer sector is predicted to see improvements in efficiency and innovation momentum. Edme emphasized that tools like AI should enhance actual sensory experiences, as people will continue to seek emotional connections through personal experiences and physical presence. Zhou pointed out that international brands aiming to enter the Chinese market need to “respect and understand Chinese culture” before finding points of convergence with their own values. They must also understand local market changes and adapt to consumer behavior. “Different target demographics may have drastically different demands for the same product,” she said. “Accurate understanding of and meeting these demands are crucial.” In the face of complex and ever-changing consumer preferences, jing zhi is no longer just a pursuit of material luxury; it represents the pursuit of personal experiences, transcending simple consumption to become a way of life and philosophy. For consumer brands to succeed in this new era, they must deeply understand and adapt to this mental shift, continually enhance the consumer experience, and ultimately achieve an emotional connection with Chinese consumers, together creating a “refined” and exquisite life. Linzy Lam, Vionna Fiducia Theja, and Agnes Wu contributed to this report.

Insights from Jing Daily: How Chinese consumers redefine luxury

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Published June 06, 2024

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Insights from Jing Daily: How Chinese consumers redefine luxury