LUXURY FASHION HANDBAGS China
by Lea Tumczyk
CONTENT I. II. III. IV. V.
The Market The Consumer The Design Opportunities Key Findings
GROWTH OF LUXURY HANDBAGS 100% The Market
80% 60% 40% 20% 0%
2010
The Consumer
2011
2012
Economical Factors
2013
2014
2015 FUTURE
Social Factors
Political Factors
The Design
RISING LUXURY DEMAND Opportunities
Tier 1 Tier 2 Tier 3 & 4
100 80 60
Key Findings
3 15
31 43
40 20 0
8
Tier 3
45
Tier 2 Tier 1
40 16 2002
Tier 4
2022
LOWER TIER CITIES The Market
The Consumer
The Design
Reasons for rise of lower tier cities: • On-going urbanization • Increasing income level • Rapid development of new transportation network lower tier cities offer companies a huge, compelling and relatively untapped growth avenue
Opportunities
Key Findings
CHINESE LUXURY CONSUMER
4
The Market
different types of Chinese luxury consumers
“Aristocrats”-Consumer Men (25-35 years)
Wealthy background
Only luxury
Influencing people
Style leader
The Consumer
Style Nationalists Women (< 35 years)
Born and acquired wealthy
Chinese designers’ supporters
Art interested
The Design
Yiqing Yin
Johanna Ho
Exception
Vega Zaushi Wang
Playpen Shoppers Opportunities
“Little Emperors”
Only child
20-30 years
Wealthy origins
Entertainment Seeker
Detail-oriented
Special treatment desire
Key Findings
Searchers Digital natives
> 30 years
Knowledge Seeker
SMALL ALTERNATIVES Prices for luxury handbags in China: Â on average 51% more expensive than in Europe
The Market
The Consumer
L O G O FA T I G U E Change in design of luxury handbags Chinese luxury consumers got logo fatigue
The Design
Opportunities
UNIQUENESS Chinese consumers want unique luxury handbags Key Findings
Adapting to Chinese culture and showing in design
Customised or personalised handbags
Unique handbags that will only be sold in China
THE 6 OPPORTUNITIES The Market
01
The Consumer
The Design
Cross-Border ECommerce
02
Keeping Authenticity
04
Adjusting Prices
05
Building up Online Presence
Opportunities
03
06
Key Findings
Focusing on Small Cities
Giving best Customer Service
THE 5 KEY FINDINGS The Market
01 Due to economical, political and social factors the growth of luxury handbags decreases
Luxury Handbag Sales slows down
The Consumer
02 Middle Class Growth
Young people constitute a new and powerful consumer force The Design
03 Due to higher incomes and rising demand of luxury handbags, lower tier cities will be on the rise
Focusing on Lower Tier Cities
Opportunities
04 Luxury Consumers become more sophisticated
Luxury consumers increasingly look for unique handbags Key Findings
05 Improved Shopping Environment is Key
Luxury consumers want exclusivity
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