Bain & Company and Altagamma revealed in a report that the business turnover of the global luxury market in 2017 has reached a record high of 1.2 trillion euros, with Chinese consumers contributing 32% of that total.
According to the report, the Chinese middle class, professional females and millennials constitute the major buying force for the global luxury market.
Early data released by McKinsey & Company indicated, taking service and price into consideration, only 70% of Chinese consumers buy luxury goods at home.
But this trend is reversing as luxury brands have adjusted their marketing strategies to cater to the purchasing preferences of Chinese consumers.
With an annual disposable income from 10,000 to 16,000 U.S. dollars, the emerging middle class is increasingly becoming the engine for luxury consumption. Female-led consumption in China amounts to 2.6 trillion U.S. dollars, accounting for 62 percent of the total.
Taking the advantage of China's booming e-commerce platforms, luxury brands have launched WeChat accounts, opened flagship stores in Tmall.com, and reached cooperative agreements with JD.com.
Also, against the backdrop of price globalization, Chinese consumers are seeing a more transparent and convenient domestic luxury market.