China’s millennials are becoming the mainstay of global luxury consumption, according to a report jointly released by the Boston Consulting Group and Chinese Internet giant Tencent, The Economic Observer reported.
The average age of luxury consumers in China is 28 years old, which is about 10 years younger than that of the rest of the world. Among them, young people aged 18 to 30 account for 58%, while those aged 18 to 20 account for 26%, which means that nearly one-third of Chinese luxury consumers are very young.
These young Chinese began to enter the first stage of luxury consumption after they graduated and enter the workplace, said Wang Jiaqian, the Global Partner and Managing Director of BCG.
Also, the consumption habits of this new consumer power have also undergone important changes. Young luxury consumers will first collect information online and then go to the store to buy. Due to the prices and the styles in stores, 45% of them will choose to go abroad to buy luxury goods.
The report estimates that by 2024, the compound annual growth rate of China’s personal luxury goods market will reach 6%, and Chinese consumers will contribute 40% of the global luxury goods market, driving the global market by 75%.