The Chinese luxury market has gone through ups and downs last year but in 2020, greater things are in store, industry experts said, noting that demand for high-end products will continue to rise this year.
According to China Daily, industry analysts predicted that the world's second-largest economy will continue to lead the global luxury goods market as Chinese consumers increase their demand for items under the designer fashion sector.
The data was based on figures from the luxury market's overall spending in 2018, which saw a seven percent hike from the previous year at $145.7 billion. According to data from Chinese luxury online retail firm Secoo Holding Ltd. and global consultancy Deloitte, the said amount accounts for 42 percent of the world's overall luxury market spending.
Among the sectors that will see increased growth through the Chinese luxury market is the e-commerce industry. Experts said online shopping will continue to be the trend among luxury buyers.
Deloitte Asia-Pacific's leader of consumer products and retail industry, Zhang Tianbing, noted that since buyers from lower-tier cities can't always make their purchases through offline platforms, they go online.
Industry analysts further noted that online shoppers will most likely focus on the following products this year: beauty and skincare items, digital devices, men's apparel, and men's footwear.
To help provide the needs of Chinese luxury brand consumers, chairman and CEO of Secoo, Li Rixue, said the company will ramp up efforts in cooperating with global luxury providers. The firm will also continue looking into international fashion trends.
As part of the efforts in further improving its services for the Chinese luxury market, Li said Secoo will focus on high-end technology such as cloud computing, big data, and artificial intelligence (AI).
Earlier this week, it was also predicted that luxury brands in China will focus on consumers under the younger generation bracket, with products moving to more digital options and technologically-inspired designs.
Pre-loved products are also expected to have a bigger chunk of the overall luxury market due to lower prices in high-end goods. Affordability is one of the key aspects of the market that luxury brands are encouraged to look into as a means of further providing the demands of consumers in China.
Finally, 5G deployment in China is expected to help improve the luxury market as a whole both offline and offline. Better connection speeds will provide consumers with a better experience, industry experts pointed out, especially with the Chinese government's push for 5G networks in the country.
