Should luxury prioritize China’s Gen X over Gen Z?

Whether through Labubu, TV shows, Blackpink, streetwear, or gaming, the Gen Z fandoms of China’s young demographics seem to be the strategic focus for luxury businesses. Yet, an increasingly overlooked growth engine is those born between 1965 and 1980: Generation X. In China, Gen X and millennials together generate over 60% of total income, which dwarfs the economic influence of younger cohorts. On a global scale too, members of these age groups are stepping into their peak earning and spending years, and their behavior, shaped by both pre-digital roots and digital adaptation, makes them a critical group for consumption analysis. According to a recent report by Nielsen IQ, Gen X spending is projected to reach $15.2 trillion this year, making them the world’s second-largest consumer market after the U.S. and nearly double the size of China’s current total consumption. By 2035, that figure will rise to $23 trillion. Already, Gen Xers outspend Boomers and occupy the highest positions in the workplace. Generation X consumption patterns Across the board, luxury marketing strategies remain disproportionately tilted toward Gen Z. Yet, understanding Gen X’s consumer behaviors is crucial for luxury houses. In China, this generation came of age during the “reform and opening-up” era of the 1980s and 1990s, exposing them to more travel. As marketing director at Tong Digital Jack Porteous says, “It is a super interesting generation — the first exit visas for traveling out of China as a tourist were only granted in the early 2000s, so Gen Xers were among the first to travel more widely.” This cohort was the first to experience consumer choice at scale and to see European luxury houses arrive in Tier 1 cities. Louis Vuitton started selling in Beijing in 1992, while Prada debuted in 1995, Hermès entered in 1996, and Chanel opened its first official store there in 1999. Miu Miu did not open a store in the market until 2009 in Shehnzen. In an economy transitioning from scarcity to abundance, status symbols started to shift from refrigerators and color televisions to European luxury handbags and watches. Gen Xers became the backbone of China’s market economy, and their early encounters with foreign luxury shaped tastes for heritage and craftsmanship. Educated purchasing behaviors For China’s Generation X, the rise of the internet coincided with their entry into adulthood and the workplace, creating a consumer profile distinct from both Boomers and Millennials. When the country first connected to the global internet in 1994, access was limited to academics, government agencies, and select businesses. But by the mid-1990s, internet cafés in cities like Beijing, Shanghai, and Guangzhou offered Gen Xers with their first taste of digital connectivity. For many, this became a gateway to global culture, exposing them to new brands, lifestyles, and consumption possibilities at a formative moment in their economic ascent. This exposure helped cultivate a habit of research-driven purchasing and a demand for authenticity that still defines their luxury consumption today. By the late 1990s and early 2000s, the expansion of e-mail, bulletin boards, and instant messaging tools like Tencent QQ drew Gen X further into online networks. Many first used the internet in workplaces or public cafés, experiences that reinforced a transactional, information-first mindset, rather than entertainment-driven browsing. When broadband and e-commerce platforms such as Alibaba and Taobao emerged in the mid-2000s, urban Gen Xers were among the first to integrate digital tools into both work and consumption. Their adoption of online shopping and later social commerce was measured and pragmatic: they valued convenience and transparency, but remained skeptical of hype. This cautious but steady embrace of technology shaped a consumer base that is digitally fluent, yet still anchored in trust, quality, and reliability, all traits that continue to set Gen X luxury buyers apart. This preference for durability and service make Gen Xers distinct in today’s luxury landscape. They are less attracted to fast fashion or disposable trends, and more willing to pay a premium for craftsmanship and reliable service. Driven by diverse factors While Gen Z might gravitate toward novelty, Gen X invests in established reputations and permanence. While Gen Z may engage with brands through entertainment-driven livestreams, Gen X sees more value in convenience, trust, and personal attention. The likes of Baby Boomer fashion designers Vivienne Tam and Vera Wang represented Chinese talent to Gen X, yet European houses received more recognition. By comparison, today’s Gen Zers are growing up with a plethora of leading Chinese independent labels gaining ground on the global stage, from Feng Chen Wang and Susan Fang to Didu, Yuhan Wang, Shushu/Tong, and Windowsen. Looking forward Rebalancing strategies to engage Gen X does not mean abandoning younger shoppers. Instead, it requires broadening the lens. Storytelling around heritage and craftsmanship resonates strongly with Gen X, particularly in markets like China where the generation’s first luxury encounters were rooted in European prestige. Service innovation, from concierge programs to personalized digital experiences, speaks directly to their desire for convenience and trust. As does elevating sustainability from a marketing message to a genuine philosophy, embedded in sourcing, production, and after-sales care. In China, this could also mean embracing cultural icons who resonate across generations. February 2024 saw Maison Valentino tap Gen X pop icon Jolin Tsai, 44, as its brand ambassador, a move that underscores the house’s strategy of engaging cross-generational consumer bases. Gen X’s presence in campaigns authentically resonates. Meanwhile, Chinese actor Wang Kai, 43, has steadily built his profile as a versatile luxury ambassador. Salvatore Ferragamo and Burberry also turned to established Chinese stars Gao Yuanyuan and Tang Wei, both in their mid-40s, as brand ambassadors, signaling a move away from the industry’s focus on Gen Z talent. The luxury industry’s fixation on youth obscures a truth: being relevant and current online does not always equal commercial viability. Gen Zers are coming of age and their Douyin-driven ways will convert to purchasing power, eventually, but they will not command the same spending power as Gen X in the decade ahead.

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Should luxury prioritize China’s Gen X over Gen Z?