Jessica Spinetti’s Post

🚀 China’s luxury shoppers are returning overseas and REWRITING the global retail playbook. Here’s all you need to know. 🌟 The resurgence is driven by two pivotal trends: 🔹 Accordingly to BCG, the first half of 2024 saw 52% of luxury consumers in China making purchases OVERSEAS, with significant spending in Hong Kong, Macau, and nearby APAC destinations like Japan for the attractive rates. Recent reports by Global Blue and ForwardKeys also show that EUROPE is coming back on the Chinese tourist map, thanks to the impact of the Paris Olympics (see my recent post on this for more info ;)) 🔹 At the same time, the luxury sector is witnessing an evolution as MAINSTREAM fashion and lifestyle brands encroach on TRADITIONAL LUXURY territory. This shift has intensified competition, as non-traditional high-end brands now target the same affluent consumers across categories like sportswear, experiential products, and accessories. So, how should brands navigate the transformed China landscape in 2024 – 2025? 🌐 The return of international shopping means that luxury brands can potentially boost their ROI by optimizing their global marketing strategies. 🎯 PRE-, DURING, and POST-TRIP engagement on platforms like WeChat, with around 1.4 billion active users, can enable brands to enhance brand visibility, drive foot traffic, and nurture purchase decisions and loyalty. Effective use of personalized communication via WeCom clienteling and WeChat Mini Programs can convert interest into sales both in domestic and international markets. This also presents a good opportunity for brands to enhance their LOCAL x GLOBAL CRM to deliver the most seamless experiences possible for their VIPs. 🔍 Brands should also keep in mind that favorable exchange rates present a DOUBLE-EDGED sword. They need to be agile in their pricing strategies to maintain competitiveness while protecting margins (see my recent post on the effects of Japan’s booming luxury market). 📈 Additionally, while brands may have the opportunity to tap into NEW consumer segments interested in the intersection of luxury and lifestyle, with cross-category competition intensifying, there needs to be a continued focus on innovation and maintaining unique value propositions. 🔥 Making the RIGHT investments is make-or-break to win in this market. Only those who can adapt to these shifts can be well-positioned to capture the attention and loyalty of Chinese luxury consumers. Thank you Vogue Business and Tencent Market Solutions for the insightful sharing. Image source: Jing Daily. #China #Luxury #Retail #CRM #WeCom 

Everything You Need to Know About China's Luxury Market in 2024 With China's cautious consumers keeping a close eye on their wallets, how can luxury brands stay alive in today's ultra-competitive market? Daxue Consulting and VO2 GROUP recently released a can't miss report, "China's Luxury Market in 2024," that covers the top luxury trends in China. Basically, it's a luxury brand's "survival guide." Here's a peek at what you'll find inside: ✅Personalized Shopping Experiences: Luxury brands in China are focusing on creating personalized shopping experiences through features like product customization, private consultations, personalized recommendations, loyalty programs, exclusive discounts, and personalized styling services to cater to the unique preferences of high-end clientele. ✅ Customer-Centric Approach: Luxury brands are adopting a customer-centric approach to navigate evolving preferences and foster loyalty through personalized interactions, ensuring long-term relevance in the dynamic Chinese market. ✅Omnichannel Strategies: Luxury brands are embracing omnichannel strategies to provide a seamless shopping experience across various touchpoints, allowing customers to schedule appointments, pre-order items, find products in-store, and personalize items through services like e-reservations, delivery options, and bespoke product customization. ✅ Local Market Adaptation: Luxury brands are adapting to local requirements in China by establishing partnerships, leveraging alternative channels like WeChat, RED, and Douyin, and implementing data localization strategies to address variations in channel distribution and comply with local regulations. Check out the full report below 👇 #China #Luxury #ChinaMarketing #Retail #ChinaBusiness

𝐒𝐨𝐮𝐭𝐡 𝐊𝐨𝐫𝐞𝐚 𝐋𝐮𝐱𝐮𝐫𝐲 𝐆𝐨𝐨𝐝𝐬 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡 𝐑𝐞𝐩𝐨𝐫𝐭 (𝟐𝟎𝟐𝟒-𝟐𝟎𝟑𝟐) South Korea luxury goods market size is projected to exhibit a growth rate (CAGR) of 4.9% during 2024-2032. Significant economic growth across the country, the rising influence of Korean culture worldwide, and an expanding younger demographic increasingly engaged with luxury brands through social media and experiential retail represent some of the key factors driving the market. 𝐆𝐫𝐚𝐛 𝐚 𝐒𝐚𝐦𝐩𝐥𝐞 𝐏𝐃𝐅: https://lnkd.in/eJ_tFqNt 𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬: ● 𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐀𝐟𝐟𝐥𝐮𝐞𝐧𝐜𝐞 𝐚𝐧𝐝 𝐀𝐬𝐩𝐢𝐫𝐚𝐭𝐢𝐨𝐧: Rising disposable income, especially among the younger demographic, coupled with the growing desire for status and personal style, is driving demand for luxury goods. ● 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥𝐢𝐳𝐚𝐭𝐢𝐨𝐧: The increasing reliance on digital platforms for luxury shopping and the growing emphasis on personalized experiences are reshaping the luxury goods market. ● 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐄𝐭𝐡𝐢𝐜𝐚𝐥 𝐂𝐨𝐧𝐬𝐮𝐦𝐩𝐭𝐢𝐨𝐧: Consumers' growing environmental and social consciousness are influencing luxury brands to adopt sustainable practices, creating new market opportunities. 𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐭𝐡𝐞 𝐅𝐮𝐥𝐥 𝐑𝐞𝐩𝐨𝐫𝐭: https://lnkd.in/epZDiNsi #luxurygoodsmarket #marketresearch #business #marketanalysis #markettrends #researchreport #marketreport #marketforecast #marketgrowth #businessinsights #industryanalysis #marketoutlook #growthprojections #marketstatistics #competitiveanalysis #trendanalysis #marketinsights #imarcgroup

China's luxury market is rebounding, but brands can't rely on traditional strategies alone. 📈 Learn how luxury brands can leverage digital products to: 🚀 Streamline internal operations and workflows 💻 Strengthen their online presence and engagement 🧑🎨 Offer personalized experiences that delight tech-savvy Chinese consumers Find out what can help you thrive in China's dynamic luxury landscape. #ChinaLuxury #DigitalInnovation #CustomerEngagement

In recent years, Chinese luxury consumers have dramatically shifted their purchasing habits, especially following the impact of COVID-19. With travel restrictions, many have turned to domestic luxury shopping, prioritizing local brands and experiences over international purchases. The rise of digital platforms like WeChat, Tmall, and JD.com has led to increased demand for omnichannel shopping experiences, where brands need to deliver personalized services and experiential luxury. For instance, Louis Vuitton is enhancing its virtual shopping capabilities, allowing personalized consultations via WeChat, while Gucci is focusing on sustainability through initiatives like the Gucci Circular Hub, appealing to the growing ethical consumption trend among younger buyers. Looking ahead, several key trends will shape luxury consumption in China: 1. Sustainability: Younger consumers are increasingly prioritizing eco-friendly practices, pushing brands like Hermès and Cartier to adopt sustainable materials and transparent sourcing. 2. Digital Integration: The use of live streaming and engaging digital content is expected to expand as brands seek to enhance online customer experiences. 3. Localization: With limited international travel, brands are investing in domestic retail, like Hermès in Hainan, focusing on personalized services to meet local demand. 4. Cultural Experiences: Consumers are looking for meaningful interactions, prompting brands to host exclusive events and collaborate with local artists. 5. Data-Driven Marketing: Brands are leveraging AI and data analytics for hyper-personalized marketing strategies, exemplified by Bulgari’s integrated e-commerce approach. As these trends evolve, luxury brands must innovate and adapt to stay relevant and appealing to Chinese consumers. What are your thoughts on the strategies that work best? #LuxuryRetail #ChineseMarket #ConsumerTrends #Sustainability #DigitalTransformation #PersonalizedLuxury #CulturalExperience #OmnichannelMarketing

Luxury retail is at a crossroads. A slowdown in the US and China—markets that drive nearly half of global personal luxury sales—has tempered growth forecasts. Yet, the future is far from bleak. In EMARKETER's new report, Sky Canaves explores how worldwide personal luxury sales will surpass $500 billion by 2028, rebounding after a modest 3.2% growth in 2024 with the following key takeaways: 1️⃣ Brands must innovate in product design and marketing, especially as younger, experience-driven consumers increasingly dominate the market. 2️⃣ Markets like India are growing rapidly, while traditional giants like China and the US face slower growth. Tailored strategies for diverse markets will be critical. 3️⃣ With ecommerce growth stalling below 5%, luxury brands are doubling down on in-store experiences. But are they missing out on opportunities in emerging social commerce? 4️⃣ Prestige beauty is outpacing other categories, offering a pocket of resilience amid economic uncertainty. Luxury consumers may be spending cautiously, but 43% of US shoppers still plan to maintain or increase their purchases this year—led by Gen Z and millennials. To win them over, brands must prioritize exclusivity, innovation, and authentic engagement across channels. Subscribers can read the full report linked in the comments. 💬 How do you see luxury brands evolving to meet the above challenges? #LuxuryRetail #Ecommerce #Innovation #FutureOfLuxury

Decoding China's Luxury Consumer: How Brands are Adapting to New Demands. Jing Daily #ChinaLuxury #ConsumerTrends #LuxuryBrands #MarketStrategy #DigitalInnovation #ChineseMillennials #LuxuryMarketing #BrandAdaptation #EvolvingConsumer #LuxuryInsights.

"Navigating the Luxury Market Slowdown: How Brands Can Turn Excess Inventory Into Opportunity" The luxury retail market in 2024 has hit a challenging period, with significant declines in consumer spending driven by global economic pressures and shifting consumer priorities. After an exceptional post-pandemic rebound, the luxury sector is now facing a slowdown across key markets. U.S. consumers, for example, have shown a marked decrease in spending on non-essential goods, a trend exacerbated by depleted savings and high living costs. European luxury sales have also cooled as buyers become more cautious about discretionary spending. Even China, traditionally a growth engine for luxury brands, is seeing tempered consumer enthusiasm despite a recent economic reopening, as the market faces national shifts towards more conservative luxury consumption and local preferences. As a result, many luxury brands are now grappling with excess inventory. This surplus not only ties up capital but also poses logistical challenges, as brands try to balance maintaining exclusivity while moving stock effectively. The need for strategic stock management and innovative sales channels has never been more urgent, especially with projected slower growth in core markets like the U.S. and China, where luxury brands were once buoyed by robust consumer spending. At EFFICIO GROUP, we specialize in helping luxury brands address these stock challenges. Our solutions enable companies to clear outdated inventory without diluting brand value, and we assist in designing forward-looking strategies to revitalize sales channels. Now is an opportune moment for luxury brands to partner with us to streamline operations, enhance inventory turnover, and position themselves for a more sustainable, profitable future in an evolving luxury landscape. DM for more info Sources: Bain & Company, J.P. Morgan Research, Luxury Roundtable, Retail Asia, and InternetRetailing. #LuxuryRetail #InventoryManagement #LuxuryBrands #RetailTrends #ConsumerBehavior #LuxuryMarket #ExcessInventory #RetailSolutions #EfficióGroup #BusinessGrowth #SalesStrategy #InventorySolutions #GlobalEconomy #BrandValue #RetailStrategy #MarketInsights #LinkedInCommunity #SustainableGrowth #LuxuryIndustry #EconomicTrends

Middle-Class Consumers and Luxury Brands: A Growing Trend In recent years, we’ve witnessed a fascinating shift in consumer behavior—middle-class spending on luxury brands is on the rise. 💼✨ Many middle-income earners are increasingly prioritizing quality, status, and unique experiences over quantity, often viewing luxury purchases as investments in self-expression and personal satisfaction. Whether it’s designer fashion, high-end electronics, or luxury cars, this trend speaks to a broader desire for aspirational living. What’s driving this change? A few factors: 1. Social Media Influence – Platforms like Instagram and TikTok have created a culture where luxury and exclusivity are highly visible and desirable. 2. Affordable Luxury – Brands are diversifying their product lines, making high-end goods more accessible to aspirational buyers. 3. Experiential Value – Luxury purchases are no longer about status alone but about the experience and personal fulfillment they provide. For businesses, this represents a powerful opportunity to tailor products and marketing strategies to engage this demographic without diluting brand prestige. What’s your take on the rise of luxury spending in the middle class? Are we witnessing a redefinition of what luxury means? 💭 #ConsumerTrends #LuxuryMarket #MiddleClass #AspirationalLiving #BrandStrategy

Startups Trends In Luxury Goods Market Is Changing: How Brands Can Stay Ahead The Luxury Goods Market in 2024: Trends and Opportunities The luxury goods market is expected to remain strong in 2024, driven by demand from emerging markets and wealthy millennials. Luxury brands that are able to respond to the key trends, such as the growth in e-commerce and the demand for sustainable luxury goods, will be well-positioned for success.