The latest report from Shanghai-based Gusto Intelligence (the consulting and research arm of Gusto Luxe) and New York City-based insights agency Spark Ideas LLC highlights six key trends amongst Shanghainese women in a Post-COVID-19 China.
The report discovered that whilst love of luxury remains strong, it’s the younger women who are revenge shopping, with those over 30 years old remaining more cautious. Conscious consumption is strong: they would rather invest in an expensive item which will withstand the test of time, rather than buying something for one season.
“It’s fascinating to understand the deep impact of the pandemic on Chinese luxury consumers. This report has unveiled great detail and insights into how Shanghainese women are refocusing their time and spend. This has clear implications for how brands should position and communicate. It also offers opportunities for brands to further explore how Chinese luxury consumers expect a specific category and brand to engage in this new environment.”, said Lee Folland, Research Director, Gusto Intelligence.
“The U.S. and other markets can learn a lot from what has and has not worked in China during the past few months as the country has re-opened. What does fashion even mean when socializing has fundamentally changed? From livestreaming to the future of private events to how to leverage relationships with SAs, this study unveiled great clues into what luxury buyers truly desire, as seismic shifts are occurring in the luxury retail landscape.”, said Malinda Sanna, founder & CEO of Spark Ideas, LLC.
The six key trends are:
1. Honing in on Home: Cooking classes, interior decoration, home improvements (even home fragrance!) are top of mind.
2. Digital First: What was already an incredibly connected society, just got even more digital. Most brands have now embraced livestreaming and new platforms to connect with China’s digital savvy consumers. However, women in this study pointed to a desire for more experimentation with this that involves personalization.
3. Health is still Wealth: Wellness, beauty and vitality have become more important than ever. Beauty consumption will continue to grow.
4. Sustainability is the New Luxury: Connection to nature is stronger than ever. Concern for the environment and themselves is key. There is a heightened interest and concern in what brands are doing to minimise environmental and social impact.
5. Pride in Chinese Brands: There is a tangible pride in Chinese brands and a real interest in purchasing them, whether beauty, fashion, art or porcelain. Many of the respondents indicated how proud they were of how China had tackled and controlled the pandemic.
6. Outbound Travel is off the Radar: Whilst they long to travel to far off destinations (and shop to enjoy tax-free prices), in the short- and medium-term they are planning trips in China.
The research was carried out at the end of June 2020. Twenty women in Shanghai took part aged 20 to 55 years old. All are qualified luxury buyers and have spent at least 5,000USD on jewellery in the last year of over 2,000USD of a single luxury good in the last 12 months. We interviewed these women via LookLook Mobile Ethnography, a product of Spark Ideas LLC.
For a copy of the report or to conduct a proprietary ethnographic study, please contact research@gusto-luxe.com.
