For the Love of Luxury - Communicating with Young, Chinese, Urban, Female Luxury Consumers

MSL China Executive Whitepaper

For the Love of Luxury Communicating with young, Chinese, urban, female luxury consumers

By Charlotta Lagerdahl, Caroline Dahl and Venus Chan

About the Research The findings in this whitepaper are based on 22 in-depth interviews, five of which were done during shopping trips, with female luxury consumers aged 20–32 in big cities in China. Another ten interviews were held with experts on the Chinese luxury landscape, including managers and executives of luxury brands, executives of online lifestyle communities, and high-end boutique owners. We also conducted detailed desktop research and tapped into our own experiences from previous luxury and lifestyle marketing and communications campaigns in China. The aim of the research was to enhance MSL China's knowledge and insight into young, female luxury consumers in China. It was not commissioned by any third party commercial venture. We have removed all brand references made by the respondents. Brands are mentioned only to illustrate points made by the authors.

About MSL China Following the union with Eastwei MSL, MSL China is now a top 5 international strategic communications agency in Mainland China. With 200 colleagues across 4 offices, MSL China brings together over 20 senior consultants with more than 12 years of strategic communications experience in this key global market. Part of MSLGROUP Greater China, the largest PR & social media network in the region today, MSL China provides knowledge driven, integrated campaigns and advisory services spanning nearly every industry and communications discipline. MSL China has received recognition from the International Business Awards, The Holmes Report’s “PR Agency of the Year,” the China International PR Association and China’s New Media Festival for its creativity and effectiveness in strategic communications and industry-leading social media offering.

About MSLGROUP MSLGROUP is Publicis Groupe’s speciality communications and engagement group, advisors in all aspects of communication strategy: from consumer PR to employee communications, from public affairs to reputation management and from crisis communications to event management. With more than 3,000 people, its offices span 22 countries. Adding affiliates and partners into the equation, MSLGROUP’s reach increases to 4,000 employees in 83 countries. Today the largest PR network in Greater China and India, the group offers strategic planning and counsel, insight-guided thinking and big, compelling ideas – followed by thorough execution.

Learn more about us at: www.mslgroup.com http://blog.mslgroup.com

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Women taking over Chinese luxury consumption In 2010, luxury consumption in mainland China reached 7.9 billion Euro – and this does not include luxury cars, yachts and private jets. China is now the world's second largest consumer of luxury goods after Japan, and by 2020 is forecast to surpass Japan and become the largest luxury market1.

For luxury brands, women are now the key target group. In a traditionally maledominated market, women accounted for more than 50 percent of luxury sales2 in 2010. In China, young urban women born after 1980 differ greatly from their older sisters (please see MSL China Executive Whitepaper From Collective to Individual: Marketing to the Chinese 70s, 80s and 90s Generations for more on this topic). They believe in the right to a career and spend their money as they please. Having grown up in a capitalistic China with modern Western influences, they have been exposed to luxury products that define their way of life.

These young, female luxury consumers are therefore a large and significant target group. Despite this growing audience, many marketers know far too little about them.

Most research on luxury consumers has focused on the more general segment of “China's wealthy”. But this definition is both too general and too narrow by focusing on an older target group and neglecting a large and growing segment of non-wealthy luxury consumers in China.

Many women born after the 1980s are currently enjoying the fruits of their parents' labor while not yet having reached the peak of their own careers. We wanted to focus on these young, urban, female luxury consumers to learn who they are, what their lives look like, what they dream about and how best to communicate with them.

1

World Luxury Association | 2McKinsey & Co

The China luxury communications opportunity The research has clear implications for brands’ communications strategy. Below, we outline a few key findings.

Brands need to segment the market more carefully This report discusses an important sub-group of Chinese luxury consumers: young females. But even this group is far from homogeneous; the women we talked to have vastly different backgrounds, dreams, aspirations and budgets. Luxury brands need to understand the motivations underlying the purchasing behavior of these different consumer segments to more effectively craft compelling messages for the China market.

Communications need to start from the inside out Every employee must be able to tell the brand story and to “live the brand”. In our work with employee engagement we constantly meet executives who have spent big amounts of money on developing the brand and the business, but are frustrated with their own employees who “destroy” the brand through both lack of brand understanding as well as engagement in their company. Internal communications is becoming an important communications discipline for managers in all industries. In the Chinese luxury business, one area where the need for internal engagement becomes especially obvious is retail.

Although the internet is making inroads, and will become an important sales channel as consumers become more knowledgeable, most of our respondents still look to the comfort of a physical store to provide the full brand experience and safety from counterfeits. But despite the heavy investment in the Chinese shopping experience by brands, shoppers still say they are unhappy with both the attitude and knowledge level of store staff. Like in other markets, the store and its staff are key parts of the overall brand image. The store is also a unique venue for educating consumers. Because of this, our findings show that many Chinese prefer to do their luxury shopping abroad.

No matter how good your external PR or advertising is, branding must start from the inside out.

Endorsements should be a key component of communications strategy Young female luxury consumers rely heavily on “endorsements” to guide their purchases. These endorsements can come from non-professional, non-traditional, real or fictional “curators” who may directly influence shopping behavior. All brands need to keep a keen eye not only on established fashion editors, celebrities and evangelists, but also on local opinion leaders and the circle of friends who can play an important role as brand endorsers.

Social media are becoming increasingly important Because of the importance of trusted endorsers, as well as the media habits of our target group who spend a big amount of time online, social media such as weibo can play an important and complementary role to traditional “glossy magazine” PR.

International fashion blogs, websites and iPhone applications such as Shopstyle.com and Style.com are constantly consulted, but more importantly, there are several influential local fashion blogs on Sina weibo (the most popular Chinese equivalent of Twitter) which are considered just as credible as famous international print titles.

Our respondents highlight the importance of weibo to get information about luxury, brands and lifestyle. We also see an emerging new media, modeled after the US success story Daily Candy, of highly curated lifestyle content being spread to a larger audience though daily email newsletters, aiming to guide Chinese to a higher quality lifestyle.

Given the novelty of this concept in China (still a Beta version in November 2011), it is too early to speak of its success. In any case, no matter how influential the big fashion magazines still are, luxury marketers need to closely watch the constantly evolving Chinese media landscape, and actively connect with current and emerging key opinion leaders.

There is a huge education opportunity Our respondents lack product and brand knowledge but crave better information. They buy and love luxury goods, but are the first generation of luxury consumers in China and therefore know surprisingly little about both brands and products. They are also largely in the dark about how to make the most of the luxury experience – for example, in applying makeup or creating a style of their own.

Because of this, they are surprisingly open to being “educated” by brands – about the brand itself, but also about broader issues related to lifestyle. This provides a huge opportunity for communications professionals to provide advice and insights about brand and lifestyle to an audience who are willing to listen and accept the brand as an authority.

Consumers are more traditional than they seem at first glance Despite her independent exterior, our young, female Chinese luxury consumer is still a traditional woman in many ways. She may be trying to break free of the constraints of tradition, but under the surface, she is close to her family and prioritizes starting her own family life.

Because of this, marketers often need to complement the message of the “woman as the ultimate individual, worthy of self gratification” with more traditional values.

Brands must avoid becoming the playthings of the nouveaux riches Female luxury consumers want to avoid the “baofahu” or “newly rich” label at all costs. Make no mistake that young Chinese urban women buy luxuries to demonstrate their hard-earned status and to show off. But they don't want to come across as nouveaux riches – despite the fact that most money in China is new. Our respondents point to several luxury brands which have failed to define their exclusivity, and which are therefore perceived as “secondrate” in China in spite of their success in other global markets. For luxury brands looking for long term success in China, it is therefore crucial to provide a context for the brand that goes beyond mere luxury products. Brands must provide an avenue into a lifestyle that includes travel, health, art and sports. The subtle difference between “new money” and “newer money” makes this distinction more important than it might seem at first glance.

Photo from Dave Samuel on Flickr

Who are today's Young, Chinese, Female Luxury Consumers?

Life, Love & Money Girls Just Wanna Have Fun Our group of young luxury loving women in China consists of independent and well-educated career women. Many have studied and worked abroad. They are breaking free from tradition and want to live their lives now rather than saving for tomorrow.

“I'm a person who lives in the moment. I wouldn't say I'm hedonistic but I still have the philosophy of living in the moment and enjoying life. I always have control of where I'm going but I don't wanna worry. Just go with the flow.” - Alicia

Colliding Worlds During the interviews, many mention having conflicts with their parents regarding family, work and their lifestyle.

“They are not actually very supportive. I want to be an English writer, but they think I'm crazy. They are traditional parents. And conservative.” - Yvette The biggest source of conflict is marriage. Their parents' generation married and had children by the age of 25, and their greatest wish is to see their daughters do the same.

“They want to choose a husband for you. Maybe he's not who you want. Our generation does not have the same values as my parents.” - Angela “Usually parents decide everything. When I was 23, they started asking me to meet with a guy.” - Clarissa “They think I should find a man and get married here in Shanghai.” - Yvette” Our respondents share a strong, vocal desire to fulfill a dream. They are in the middle of two worlds; the traditional Chinese world and a modern world with new values and influences. These modern values are generally beyond the understanding of China's older generations.

The two worldviews often collide and give rise to difficult choices and pressures. But rather than confronting this

MSL China Executive Whitepaper Communicating with young, Chinese, urban, female luxury consumers

challenge, our respondents tend to keep their reservations to themselves.

“Our generation has a totally different life. I think that it is better to hide my true opinions from my parents.” - Louise

For communications professionals, it is important to understand this fine line of celebrating female success and independence, which must not come at the expense of traditional values and aspirations.

As opposed to the western world, young Chinese urban women often lack role models in terms of lifestyle and life choices. The world has changed too much for them to be able to ask their mothers for advice. Instead, they look to friends and media for guidance, giving rise to movies like the 2010 hit Go Lala!, a blockbuster Chinese Working Girl meets Sex and the City hybrid. A new kind of Chinese heroine has been created: the young, ambitious career girl who wants and gets it all; the career, the salary, the clothes and the (successful) man.

Shopping means Escaping, Indulging and Verifying

And I am a Material Girl

“After I close a good deal at work, I go shopping.” - Christine

The concept of freedom is crucial. And freedom for this group means one thing: to be able to buy what they want, without financial constraints. This financial freedom should preferably be self made from their own careers.

They derive a sense of enjoyment from earning and spending their own money.

“The reason why I love money is because I love the feeling of spending what I have earned myself.” - Fiffy At a first glance, it might look as if this group is very nontraditional and independent, rejecting the old fashioned values of their parents' generation. But on a closer look, we find that despite the “modern” aim of being successful and financially independent, our respondents are actually quite traditional. Financial success is not enough. These women want a husband. But not any husband; they want a rich one. Even though romantic love is seen as the number one factor when selecting a partner, all of our respondents also explicitly pointed to financial status as an important consideration.

“First I have to have a boyfriend I love. As for finances, if there is a big discrepancy between us, there will be big problems for our relationship.” - Christine

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Shopping behavior Living and working in China's big cities is stressful. For our respondents, consumption is a fundamental part of life and a way of releasing the pressures of everyday life.

China may be a gift giving culture, but luxury shopping is mainly a way of indulging oneself.

Luxuries are considered a verification of a good life and professional success. Being able to buy these exclusive labels means you have reached the top of your profession.

“When I moved back to Shanghai, when I met Chinese girls at parties or something, I noticed they didn't buy expensive stuff; they didn't have luxury bags. I think I have a relatively better life than them.” - Kelly “When I get a new one, I feel good about my life. I feel I have a good quality of life. I can get what I want! I can satisfy some needs.” - Joanna

It's all about the Experience It is well known that for a majority of these women, shopping is not just about a product. As in other markets, it is about the whole experience. But we were surprised to find that our respondents didn't think the local shopping experience measures up to international standards. Many of them have been abroad and consider the service and attitude of the sales personnel in mainland China to be poor. Sales personnel are seen as being either too

It's all about the Experience

aggressive or too indifferent, and having poor knowledge about the products and brands they represent.

“They have no passion for the customer.” - Linda Therefore, many of these women choose to take their luxury shopping abroad or to Hong Kong. This is not only because of lower prices, but also due to the superior shopping experience.

“Like for sure, if I am going there to shop then it means I'm spending money, right? So if the service is no good, then I am not going to go there again because I can go to other places.” - Cecilia We also found that our respondents are not too keen on purchasing luxury goods via the Internet. While they often shop for other things on Taobao – the popular Chinese equivalent of eBay – they seldom go online for luxury goods. Some of the respondents complained about the lack of customer service and logistics. Others were concerned about the possibility of inferior quality. Perhaps most importantly, our respondents wanted to be able to first touch the products.

“I've tried once or twice at Taobao, but I want to see [the product], try it on.” - Christine

“Are there any? The Chinese brands are too young, they have no heritage.” - Angela

Chinese luxury consumption is still a novelty, compared to Europe or the United States. Chinese consumers in general have less information about the brands and products. The physical boutique is not only a part of the experience, it is also a key source of information. Some brands have understood this. In 2011, Burberry chose China as the first country in the world where all stores would be equipped with touch screens for customers to enjoy the brand's special multimedia series of features on products, fashion shows and entertainment.

More surprisingly, respondents also mentioned several modern Asian brands and concepts as highly desirable, highlighting the fact that successful brands can compensate for a lack of heritage.

For online luxury retailing, either the target consumers need to be knowledgeable about the available goods, or the retailer needs to lower the perceived risk of buying the “wrong” item for the not-so-luxury-savvy consumers. One example is the Italian luxury e-commerce specialist Yoox Group. In 2011, together with FedEx, the company launched a new “try-it-on” service designed specifically for Chinese consumers. After FedEx deliver Yoox products, the courier waits so that the customer can try it on and return it directly with the same courier if dissatisfied.

Also, Yoox offers a 24-hour call center, instant-messaging, fashion advice, a brand shopping bag included with each shipment and a reusable extra-durable gift box. To encourage counterfeit-wary Chinese consumers, Yoox also uses RFID tags to track goods, allowing constant monitoring from warehouse to customer.

Brand Essentials Little Trust in “Made in China”

As luxury marketers already know, Chinese prefer European luxury brands. “Made in China” is associated with inferior quality, imitation and a lack of brand heritage.

Fake – No Thank You! In an appearance dominated culture, being “caught” with a fake luxury item is an embarrassment of gigantic proportions. Our respondents show strong feelings against fake products, in particular when the logos are highly visible, indicating that the bearer will be seen as trying to come across as something she is not.

“We won't use fake stuff. Chinese people won't use it. It makes us feel ashamed. Fakes won't make me more confident.” - Fiffy “If you wear a fake one, you will be afraid that someone will see it. It's not very comfortable.” - Angela

Luxury and Social Status Oh, those bumptious baofahu!

In a country with virtually no old money, it might come as a surprise that all of our respondents, independent of social status, have very strong negative feelings towards “new money”. Nobody wants to be regarded as, or associated with, the nouveaux riche or “baofahu”, even though several of our respondents – or at least their parents – would probably themselves be seen as such in an international setting. Newly rich are identified as “peasants” without taste, who became rich overnight during the economic reforms in China, and now want to show off.

MSL China Executive Whitepaper Communicating with young, Chinese, urban, female luxury consumers

“I think that they might not be confident enough. They have to buy the big logos for support.” - Joanna “And new money, they are like… a disaster. They are all disasters. Seriously. Inside they are still the same person, still the same poor person. They only try to look rich on the outside, but it is not compatible with their inside, which is still poor.” - Cecilia The notion of “old” and “new” money, and the strong sentiments attached to it, has led to a strong need for a luxurious lifestyle to obtain a certain social status, in contrast to being able to buy the status through brands.

Social status, our respondents claim, is about being free (to buy and do what they want), having an international education, traveling the world, being wine connoisseurs, having a healthy lifestyle, practicing yoga and partaking in outdoor activities such as skiing, water sports, horseback riding, golf and tennis.

“I play tennis, go to the gym and practice yoga. I like water sports, I sail and I've tried wind surfing, swimming and diving.” - Christine But these opinions appear to be voiced only when respondents are looking to distance themselves from the newly rich. In all other parts of the interviews – and more importantly, in the purchasing behavior – it is clear that our young female consumers buy luxury products precisely to reaffirm their social status. But they certainly don't want to be seen in this way. Communication professionals need to provide a rationale to “legitimize” the luxury purchase for the bearer: the craftsmanship, the quality, or a “greater good” such as environmentalism.

Luxury for luxury's sake risks being associated with baofahu, and several internationally known luxury brands were highlighted in the interviews as less desirable because they were seen as catering to the pretentious crowd. Clearly, this is an area where international communications professionals need to proceed with great care.

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I Need Those Luxuries!

Like most Asian societies China is all about face. Luxury brands are closely tied to social status and peer pressure.

In this market and in this group – particularly among younger girls – the respondents claim to need luxuries.

“When I was a little younger and lived in the States, I didn't care about brands. Here in China, there is huge peer pressure; my friends can have the branded stuff. Psychologically you have pressure. Everyone in my class has name brand stuff.” - Lisa One of the respondents, coming from a wealthy entrepreneurial family, stressed that she frequently attends business parties with her mother where appearance is of utmost importance. Wearing a designer handbag is mandatory to gain respect and be a part of the group.

Another, less wealthy, respondent stressed that: “For Chinese people it will be a little bit embarrassing to always use the same bag. Especially when you work in the PR industry, and you have important meetings with clients, who care about what brands you use. You need to have more than one or two luxury brands to present yourself.” - Angela

Segmentation: Introducing Desktop Cinderellas, Golden Dolls and Trench Coat Tigers

MSL China Executive Whitepaper Communicating with young, Chinese, urban, female luxury consumers

Segmentation

Desktop Cinderellas

Golden Dolls

Trench Coat Tigers

Monthly shopping budget

500-3000 RMB (≈50-300 Euro)

10 000 RMB-unlimited (≈1000 Eurounlimited)

5000-30 000 RMB (≈500-3000 Euro)

Social background

(Lower) Middle Class/ Salary Class

Wealthy/Very Wealthy

Upper Middle Class/ Wealthy

View on luxuries

A way to increase social status

A necessity to a life on top

A part of luxury lifestyle

One of the most important findings from our interviews was that this group is not homogeneous. While our group shares many similarities, they are also separated by different values and aspirations. We have identified three groups of young, Chinese luxury loving women belonging to the one-child generation: Desktop Cinderellas, Golden Dolls and Trench Coat Tigers.

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Desktop Cinderellas

“Look, I have status!”

The Desktop Cinderellas are usually white-collar office ladies. Individually, they do not spend large amounts of money on luxury, but they do spend, and they are a large group. Moreover, of all three groups, they are the most desperate for luxuries.

They may have international experience from studying abroad, but in general, they have a more local outlook.

They dream about the world of the Golden Dolls, who usually, as we will see, really are part of the established upper class in China. Since Cinderellas usually still live with their parents, they are able to indulge in conspicuous consumption two to three times per year. Due to their (lower) middle class background, Cinderellas are especially likely to find that their parents do not understand their lifestyle choices.

As China's urban middle class grows and becomes more affluent, this category will continue to grow and luxury brands should therefore build a strong connection with these consumers today. One recent attempt has been made by Dolce & Gabbana (D&G), which launched a highend cosmetics line in China in 2011. The product, developed together with consumer-goods giant Procter & Gamble, looks to introduce a new era of D&G glamour to less affluent consumers.

Consumer Behavior Cinderellas typically buy less expensive luxury items such as skin care products, cosmetics and perfumes. Due to their limited purchasing power, they are not impulsive buyers when it comes to larger items. They carefully compare prices and calculate their expenses to buy luxuries. As an example, one interviewee saved for more than a year to buy a designer handbag worth about 16 000 RMB (≈1850 Euro). During that year she took the metro instead of a taxi and always ordered the cheapest meals for lunch.

Perhaps because of such sacrifices, happiness of possession is much higher than with the other groups; there is a stronger feeling of gratification and achievement for these women.

“I remember when I got my bag. I saw it and thought I needed it. At that time I was still a student, so I got a parttime job. After one month, I rushed out and bought the bag.”

- Julia Since Desktop Cinderellas don't go shopping as often as the other groups, the shopping environment is less important to them. They mainly focus on the product itself and not so much on the service or customer experience.

Brand Preferences Cinderellas prefer “safe” well known marques with high brand recognition in China. They are not willing to risk spending large amounts of money on the locally unknown label, even if this “unknown” is a high-status brand internationally. Desktop Cinderellas get most of their brand education from friends, colleagues and other peers. Since they don't have much experience with luxury brands, brand reputation is their key priority. Since they cannot afford to buy luxuries often, they prefer classic and timeless items.

MSL China Executive Whitepaper Communicating with young, Chinese, urban, female luxury consumers

Chanel conducting high level educational branding in Shanghai In 2011, Chanel shared its brand history, values and culture in an innovative and comprehensive way through Culture Chanel. This two-month exhibition at the Museum of Contemporary Art in Shanghai was especially made for the Chinese audience and showcased the design legacy and life of the brand's iconic founder Coco Chanel.

The exhibition displayed roughly 400 items, including loans from private collections and museums worldwide. By doing this, Chanel took the opportunity to educate the market about its brand and its heritage, filling the void in a market where luxury brands do not have a long history and many consumers lack in-depth information about the brand essentials. The broad marketing targeted a wide group who might not individually be able to afford luxury in quantity; the idea was to put Chanel on this group's shortlist of “safe” brands whose value is known to many and whose status and legacy is highly desired.

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The Self and Social Status Desktop Cinderellas are more collectivistic in their mindsets than Trench Coat Tigers and Golden Dolls. They prefer to have a similar style as their friends rather than standing out. Office ladies go for a more professional and feminine style, with a touch of luxury. Others have a more juvenile style. They prefer to go shopping together with friends since they like to hear their friends’ opinions.

Cinderellas are aspirational social climbers who believe that luxury brands are an indication of social status.

Consequently, they purchase luxury brands in order to improve their social position in society.

“You can use luxuries to upgrade your status. We buy luxury brands to create a better image, boost our success and confidence.” - Jennifer This desire to be a member of a higher class may imply a great deal of peer pressure.

“Some of my friends’ families have very, very much money.

They will ask me to go shopping in Hong Kong with them but I don’t have so much money. And I felt pressure when a friend of mine bought a very expensive bag a couple of months ago in Paris.” - Sabina

Shopping behavior

Desktop Cinderellas

Golden Dolls

Trench Coat Tigers

Aspired

Spontaneous

Time pressured

Golden Dolls “Look, I'm rich!”

Golden Dolls are often second-generation entrepreneurs.

They have often been sent abroad at a relatively young age. They might be working in the family business, but there are some who don't work at all. Their materialistic lifestyle is the envy of many young women.

Dolls have similarities with the ill-regarded “second generation rich” or “fù èr dài”, but many in this group work hard to support their extravagant lifestyle. For them, “being rich” is not enough, they harbor real aspirations of “achieving something”, such as starting a business. It is important for working Dolls to position themselves as smart and ambitious, having the ability to create for themselves what their parents once did for the family, and they tend to look down on the non-working Dolls, or fù èr dài, a term which usually refers to a person who is content with spending the money of his or her parents.

“Sometimes when I drive on the street, I see those people who drive shitty cars, they are ugly, they wear like shitty clothes. But they are so happy. Like, how can they be so happy? That's the life I want.” - Cecilia

Consumer Behavior Golden Dolls are the most impulsive and unpredictable of the three categories. They usually don't fantasize about shopping like the Desktop Cindrellas or squeeze it in like the Trench Coat Tigers; they just consume.

“I never think about it. If I go out and see it and like it, I will immediately buy it. It's better for me not to take too much money with me when I go out.” - Tiffany “My mum always gives me enough money. I never feel that I don't have enough money.” - Joanna Golden Dolls are frequently on waiting lists for the latest items from well known brands. Yet, they strongly dislike waiting. The happiness of possession is relatively shortterm and there is a sense of indifference and nonchalance towards luxury brands. Luxuries are seen as disposables. “[…] it is so practical. It is not in leather, and I am such a careless person; I would just drop my bag on the floor and bla bla bla. Basically I don't give a damn about my bags and […], no matter how many times you drop it on the floor, it is still good.” - Cecilia Dolls are generally members of the VIP clubs of more than one luxury brand. This is considered an additional indication of social status. They expect royal treatment in all encounters with the brand, and get upset if they don't receive it.

MSL China Executive Whitepaper Communicating with young, Chinese, urban, female luxury consumers

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Brand Preferences The personal relationship with the luxury brand is also the main source of brand education. Golden Dolls have extensive knowledge about the best-known brands, and during their trips abroad they are also becoming increasingly familiar with lesser-known houses. Dolls desire young, lively and colorful brands with an extravagant and sexy image. Prestige and exclusivity are the key characteristics. For instance, one interviewee pointed out a specific luxury brand which she actually thought had poor quality, but which she still buys since she thinks the logo confers high social status.

Dolls are open to try new trends and innovative ideas – more so than the Desktop Cinderellas who prefer to play it safe, and the Trench Coat Tigers who are less flexible when it comes to changing styles. The most desired luxury item amongst these consumers is a specific bag, which carries a high price and is very hard to find. Only the top layer of society can afford this bag – something that the Dolls find extremely attractive.

“You have to carry [it]. It’s also a way to start a conversation, that you are one of the group.”- Alicia

Fendi's fashion extravaganza on the Great Wall In 2007, Italian fashion house Fendi, together with legendary designer Karl Lagerfeld, held an extravagant fashion show on the Great Wall. The show was staged on the top of the ancient structure, with spotlights lighting up the models and casting the surrounding scenery into gloom.

As measured by its 1,500 mile length, it was probably the longest catwalk in history.

The entire production was said to have cost around 10 million dollars. "I seriously doubt that there will be anything of this magnitude or anything this magical for a very long time," said Kate Bosworth, one of the A-list celebrities attending the fashion extravaganza.

The mix of the over-the-top, larger than life production and the international A-list glamour was highly appealing to the young, rich Golden Dolls, who referred to this event as the “perfect branding”.

The Self and Social Status Golden Dolls do not care about what people think of their style, as long as they are seen as being rich. But they also want to be seen as trend setters among their circle of friends.

“I always have girl friends who say: Oh my God, I love your shoes! Like where did you buy your shoes? And then they go buy exactly the same ones.” - Cecilia They change styles frequently and are always looking for something new and exciting.

Worst fear

Desktop Cinderellas

Golden Dolls

Trench Coat Tigers

Be perceived as newly rich

Be perceived as newly rich

Be perceived as newly rich

“I have to change my look every day, otherwise I'll get so bored. I think clothing, change clothes… It's a fast way to change my mood. You feel like you are a new person. It's a new day.” - Alicia Dolls view luxuries as a reassurance. Buying luxury brands makes them feel they belong to a superior status group. In their social circles, it is generally expected that people should use luxury items. Golden Dolls do not necessarily have a passion for fashion, but there is still a strong sentiment of needing the luxury brands within this group, almost to the point of being an obligation.

Shopping drivers

Desktop Cinderellas

Golden Dolls

Trench Coat Tigers

Social status

Belonging

Self expression

“If everyone has it, maybe I will have one too. […] If I don't like the brand, I will still buy it. It shows social status.” - Joanna Like everyone in this group of young, urban luxury loving women, Golden Dolls generally fear being associated with the newly rich. But they still like ostentatious brands. In an attempt to distinguish themselves from “those newly rich”, they always go for the latest models or items from the new season, limited editions and items that are on waiting lists. This makes them feel fashionable and unique.

Trench Coat Tigers

“Look, I have style!”

Like the other groups, most of the Trench Coat Tigers are careerfocused professionals. Like the Golden Dolls, many of them are entrepreneurs. They are on their way up in their careers, but are not fully funding their luxury lifestyle on their own yet – they still rely on money from their families. The main difference with the other two groups is that they feel more “cosmopolitan” than “Chinese” and they have adopted a rather foreign lifestyle.

Also, they are the most knowledgeable in terms of lifestyle amongst the young, female luxury consumers in China, and they pride themselves on having an international outlook on life. For example, they might like to get a tan, while most Chinese women are using whitening products for their skin. For them, having an active and healthy lifestyle is fundamental, as is being well-traveled and cultivated.

Interests

Social Networks

Desktop Cinderellas

Golden Dolls

Trench Coat Tigers

Get-togethers with friends, Karaoke, Online chatting, Books

Chilling Nightlife Luxury travel Cars

Yoga Outdoor activities Adventure, Travel Wine

Desktop Cinderellas

Golden Dolls

Trench Coat Tigers

Exclusive domestic ones P1 weibo

Exclusive international ones A Small World weibo

Public domestic ones Renren.com Kaixin001 weibo

Consumer Behavior Trench Coat Tigers have a genuine interest in fashion. They have developed, or are actively working to develop, a strong personal taste, often based on their experiences abroad. They are picky, and unforgiving if they have a bad experience with a brand. Tigers are curious about up-coming trends and designers and seek information from the sales personnel. They also appreciate when sales staff understands their taste and can show them reserved items. Many of these women are VIPs of different luxury brands.

Tigers do talk about fashion and haute-couture with their friends, but they usually do not talk about a specific new purchase since they are afraid to show off. They may recommend different brands and products, but everyone in their circle is very particular about having her own style – uniqueness is seen as a status symbol in itself.

“I am a person who likes to do things quietly. I have my own thoughts about dress and fashion.”- Jennifer Since Trench Coat Tigers are hard-working career women, they do not have a lot of time for shopping and their shopping habits are unstructured. They typically do their shopping abroad, trying to find unique pieces from other countries. They are fond of vintage items and cherish the story behind a rare vintage find. These women are also more aware than the other groups about social issues such as environmentalism.

“I try to contribute more than consume.”- Alexandra

Brand Preferences Tigers prefer low-profile brands and new, up-and-coming designers. They also tend to like multi-brand boutique concepts – something that only exists on a small scale in the largest Chinese cities. Excellent quality, brand history and heritage as well as the aesthetic and emotional content are what the Tigers are looking for in a luxury brand.

“There is a difference between luxury goods and expensive goods. Expensive goods have no history, no luxury. Just a normal product, just more expensive than others.” - Rinna Tigers emphasize that they dislike big logos. One interviewee pointed out that she once got a very expensive luxury handbag as a gift from a friend, but then never used it because she did not like the big logo on the bag. Again, this is because big logotypes and too much profiling give associations to newly rich and counterfeits.

Golden Dolls

Trench Coat Tigers

Metro/bus

Prestigious

Expensive or Aware

“I think it's too common and there are too many fakes, too shiny and too high profile. I like something low-key, classy, timeless. Not a big logo, not 'look at me.' It's so much more low-key.” - Alexandra

The Self and Social Status Trench coat Tigers are more fashion aware than fashion followers. They like to be “in the know” and appreciate being updated about trends and new products. However, they do not frequently change styles.

“I admire people who can wear their own style. They wear the stuff, not the stuff wears them. The financial value of each accessory is not so important. It's the whole outcome.” Alexandra The fashions of the 50's and 60's are popular with Tigers.

To obtain a unique style, they mix different brands: expensive with cheap, luxury with non-luxury, well-known with unknown.

“Like me, I usually use luxuries and very cheap things together. Just make my own style. The beautiful things are the most important. I don't care about the price.” - Cathy Desktop Cinderellas

Fashion idols

Local Celebrity Icons Zhang Ziyi, Fan Bingbing, Gong Li, Shu Qi

Golden Dolls

Trench Coat Tigers

International International Glamour Icons Fashion Icons Victoria Beckham, Coco Chanel, Jacqueline Kennedy, Angelina Jolie, Carla Bruni, Megan Fox, Alexa Chung Blake Lively

Hermès Human and Nature exhibition appeals to the Trench Coat Tigers In 2011, “Hermès” for its sub brand Shang Xia, created as a celebration to Asian craftsmanship, organized a one month exhibition in Sinan Mansion in Shanghai. The exhibition was called Human and Nature and was devoted to modern craftsmanship and design. The 2012 showcased collection includes furniture, decorative objects, garments and accessories; combining heritage mixed with innovation.

Sinan Mansion, where the exhibition was situated, is a historic villa constructed in the 1920s. Recently restored, the villa mixes traditional architecture with contemporary facilities and design. For the exhibition, the villa's interior was designed to mirror the theme Nature. For instance, the first floor space was decorated with 580 hand-made bamboo screens from Anji, in Zhejiang province.

This creative, yet low key approach is attractive to Trench Coat Tigers, who are looking for luxury while wanting a reason to buy. The Hermès exhibition was successful in radiating exclusivity while avoiding anything too spectacular, and Hermès has been rewarded by being extensively highlighted by Tigers as one of their go-tobrands.

Photos from Dave Samuel on Flickr

Modes of transportation

Desktop Cinderellas

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MSL China Executive Whitepaper December 2011 Copyright 速 MSL China