Quiet luxury, thoughtful consumption trending among overseas Chinese

The following is a preview of Jing Daily and Spring Studios’ partnership report “Bridging cultures, shaping markets: The influence of overseas Chinese on the global luxury landscape.” Get your copy today on our Reports page. The concept of luxury among overseas Chinese has undergone a significant transformation, moving beyond mere labels and price tags to emphasize heritage, craftsmanship, knowledge, experience, and exclusivity. This shift towards thoughtful consumption highlights the ethical and cultural significance of luxury items, extending into lifestyles characterized by gourmet dining, unique travel, and wellness. “Luxury means a high standard of living, the food you eat, where you go on holiday, how you spend on wellness,” says Gareth Chow, a 29-year-old entrepreneur based in the UK. David He, a 35-year-old real estate agent in the US, echoes this sentiment: “True luxury involves understanding the essence and value behind something, recognizing why it’s considered valuable.” Reflecting a broader movement towards quiet luxury, consumers increasingly prefer minimalist branding and designs that eschew overt logos for subtlety. Over 60% of high-net-worth individuals (HNWIs) surveyed express a preference for logo-free luxury products that maintain a level of discreet recognition. The shift towards informed and subtle luxury Younger overseas Chinese consumers, who are often well-educated and well-versed in luxury brands, are making informed choices based on thorough research and peer influence. They value sophistication, design, fabric, and craftsmanship. Catherine Shi, a 25-year-old retail and CRM coordinator in the US, shares her evolution in luxury perception: “I used to prefer loud luxury with big logos. But now, I understand it’s more about a lifestyle attitude. For example, I like Loro Piana because it’s understated, and its wool, which is really from sheep in Inner Mongolia. Wearing it feels completely different. It’s the texture that speaks to its luxurious nature.” This consumer persona, characterized as "luxury connoisseurs," is more common among younger overseas Chinese and still emerging in mainland China. These individuals seek to underscore their uniqueness through specific brand choices and are willing to invest in premium offerings that reflect their personal style and taste. Quality and service are paramount to them, aligning with their desire to be seen as stylish and discerning. “In China, there’s too much focus on the brand itself. Here in the US, my friends actually care quite a bit about the style and whether it suits you or not,” explains Qianwen Chen, a 36-year-old software engineer in the US. Self-purchasing as a form of self-reward For many young overseas Chinese, purchasing luxury items serves as a powerful symbol of self-reward. These transactions are not merely about acquiring high-end items; they represent the acknowledgment of personal achievements and significant milestones. This behavior, influenced by Western individualism, is part of a broader cultural shift towards seeking personal fulfillment and recognition through luxury goods or experiences. Catherine Shi remarks, “I think luxury is more about treating yourself. It makes me feel comfortable, boosts my confidence, and gives me a glowing radiance. It’s about taking good care of myself, working hard, and then rewarding myself with my earnings.” Qianwen Chen adds, “Money should be spent on oneself. If it’s not spent on oneself, it’s as if it was never earned.” This contrasts sharply with older Chinese immigrants who often uphold traditional values of hard work, saving money, and self-sacrifice. David Woo, a 48-year-old Boston resident, notes, “My generation was raised with traditional Chinese values. The mindset of the younger diaspora is distinctly different.” Embracing uniqueness and emerging brands The Chinese diaspora’s exposure to diverse cultures and global experiences has cultivated a distinctive openness to niche brands and unique fashion styles. This inclination towards lesser-known, emerging brands is not just about fashion statements but reflects a deeper desire for self-expression. “I like niche brands like Reformation because it’s environmentally friendly and has nice cuts,” says Carrie Wan, a 38-year-old hedge fund co-founder in Singapore. “I only buy bespoke bags, something I can work on with the designer directly.” The unique position of the diaspora, formed from bicultural identities, allows its members to bridge the gap between traditional and contemporary, local and international. This often makes them trendsetters who introduce new brands and styles to their networks, reinforcing their distinctiveness and influence in the global luxury market. The substantial economic and social impact of overseas Chinese highlight their importance as a key demographic for luxury brands. Download our full report to learn what this means for brands in 2024.

Quiet luxury, thoughtful consumption trending among overseas Chinese

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Published July 29, 2024

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Quiet luxury, thoughtful consumption trending among overseas Chinese