Trend Report Handout

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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