Report preview: The influence of Overseas Chinese on global luxury

The global luxury slowdown has dominated recent headlines, prompting businesses to recalibrate their strategies amid challenging conditions in key markets such as China. It’s clear that economic headwinds have buffeted entry-level luxury consumers more than high-net-worth individuals. Despite broader macroeconomic challenges, a core group of elite customers has continued to propel the market’s expansion. Last year, China saw the largest exodus of thousands of millionaires, with data showing a net 13,500 were expected to leave in 2023. This trend, not merely a reaction to the pandemic, has been ongoing over the past decade. While past research focused on the domestic Chinese luxury consumer, a new generation of overseas Chinese — born in China, educated abroad, and opting to stay overseas — is becoming increasingly influential. These individuals are emerging as a crucial new audience for luxury brands, characterized by their spending power, unique identity, and mindset. In collaboration with Spring Studios, Jing Daily explored and analyzed this dynamic group, drawing on experts, secondary research, and in-depth interviews with cultural creators, tastemakers, and entrepreneurs. These insights, provided by individuals aged 23 to 38 in key locations like the UK, US, and Singapore, form the basis of our report. Report preview and panel talk Discover the latest insights into this cohort at an exclusive preview and briefing breakfast panel on June 5 in London, which will be followed by a second panel in New York on June 17. Distinguished panelists with extensive expertise in the overseas Chinese market will provide valuable insights into effective strategies for engaging this critical demographic in key luxury hubs. The report will be available for download on the day of each event. Due to limited capacity, RSVPs are required. Secure your spot for the London event at Spring Studios here, and for the New York event here. The overseas Chinese elite’s sense of identity and culture play pivotal roles in their luxury consumption. They value heritage, craftsmanship, and exclusivity over labels and prices, and their conception of luxury extends to lifestyle choices like fine dining, unique travel experiences, and wellness. Their extensive exposure to diverse cultures fosters a distinctive openness to niche brands and unique fashion styles, making them influential tastemakers. Social media use among the overseas Chinese spans both Western platforms like YouTube and Instagram and Chinese platforms like Xiaohongshu and WeChat, enabling them to find content that resonates with their hybrid identities. Our report reveals that luxury brands often overlook the power of Key Opinion Leader (KOL) marketing and word-of-mouth endorsements within these tight-knit communities, a strategy that could significantly amplify brand presence. The report suggests five key strategies, as shared below, to effectively engage this influential group. Download the report on June 5 for the full breakdown. Connect via multicultural and “hybrid” identities. Collaborate with overseas Chinese creators who share their perspectives and lived experiences. Cultivate stronger ties with overseas Chinese communities. Craft bespoke experiences that bridge East and West. Boost high-touch luxury services via digital-first experiences.

Report preview: The influence of Overseas Chinese on global luxury

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Published June 02, 2024

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Report preview: The influence of Overseas Chinese on global luxury