The global luxury market has been growing fast thanks to increasing Chinese demand, according to Glamour Sales CEO Thibault Villet.
Chinese customers now represent 35% of the total global consumption of luxury goods.
No wonder international brands, even smaller ones, are betting on China.Thanks to ecommerce especially, now timing is good.
Luxury Sector Growing via Overseas & Online Purchases
What we've noticed in the past two years is that, more and more, this consumption has moved from the traditional offline business to offshore business, meaning people buying overseas. This represents 75% of the total luxury consumption for Chinese. Chinese customers are very aware of price differences between China and overseas.
The second area of growth has been online. Glamour Sales's revenue growth has exceeded 100% every year for the past five years. Both online and overseas channels offer more choice to the consumer.
New Trends in the Market
We have also noticed over the past two years a sophistication of the luxury customers here in China. Customers are becoming more interested in new brands that are different from what their parents used to wear or buy. It is also a market which has moved a lot from gifting toward more personal use.
Chinese shoppers are favoring ladies' luxury ready-to-wear and shoes, whereas some other traditional categories are losing pace.
There are a lot of things happening in this market, and this is what makes China definitely a much more dynamic market than in Europe or the US.