2024中國奢侈品市場洞察報告 China Secures its Place at the Global Luxury Table

ChinaSecuresitsPlaceatthe

GlobalLuxuryTable

HowopportunitiesandTrendsinchinaLuxuryMarketshapethechineseQualityLifestyle

2024ChinaLuxuryMarketInsightsReport

KikiFan

GeneralManager,TencentMarketingSolution

Asakeyplayerinthegloballuxurygoodslandscape,thestatusandinfluenceoftheChinesemarketareincreasinglyprominent.Atthesametime,theevolutionofChina’sdigitalecosystemandthedeepintegrationofonlinechannelswithsocialmediahaveturbo-chargedtheindustry’srise.Afterdecadesofrapidgrowth,theChineseluxurymarketremainsdynamicandopportunity-rich.Bypayingcloseattentiontotheconcernsofconsumersandunderstandingtheneedsoflocalization,companiescanaccessabroad,high-valuecustomersegmentthatdeliverslong-termvalue.WithWeChatatthecore,Tencentwillcontinuetoleverageitssuperiorecosystem,deepoperations,andcomprehensivetouchpoints,tohelpluxurybrandsbetterunderstandconsumers,andmoveinstepwiththeChinesemarket.

EricChang

DeputyGeneralManager,TencentMarketingSolution

ForChina,whichisbothanemergingmarketandaleaderindigitalinnovation,manyluxurybrandsareactivelyexploringnewpositionsandbusinessmodels,focusingontappingthedigitalspacetoguideconsumerhabits,makingtheonlineenvironmentthesebrands’“secondspace”.Initsdigitalexplorations,Tencentisleveragingitsecosystem,preciselytargetingopportunitygroups,anddiversifyingpathstoconversion,tohelpbrandsstreamlinetheirmarketingcyclesandbuildtheirimpact.Theinsightfromindustrytrendsisthatwhenluxurybrandstapthepotentialofdigitalizationtoimplementstrategiessuchasprecisemarketing,contentinnovation,andomni-channelintegration,theycannotonlybettercommunicatetheirbrandvalue,butalsoexpanduserboundaries,buildingamorestableandsustainablegrowthmodel.

VeroniqueYang

ManagingDirectorandSeniorPartner,BostonConsultingGroup(BCG)

2024presentsacomplexlandscapeforChina’sluxurymarket.Despiteongoingdiscussionsaboutslowingdomesticgrowthandariseinoverseasshopping,Chineseluxuryconsumers'totalexpenditurehasincreasedby4%,andtheircontributiontothegloballuxurymarkethasremainedstableandsignificantoverthepastfiveyears.Thisperiodisatestofbrands’resilience:decadesofmarketcultivationhaveestablishedluxurygoodsasavitalforceinenhancingqualityoflifeandaestheticsinChina.Theprogressofbrands,products,marketing,andservicesintheChinesemarketiswellrecognizedbyluxuryconsumers.Westronglybelievethatastheonlineandofflinebusinessenvironmentevolves,anddigitalmarketingadvances,brandswithalong-termperspectivewillreaptherewardsofsignificantgrowth.

ThomasZou

ManagingDirectorandPartner,BostonConsultingGroup(BCG)

Thisyear,ourresearchfocuseson“deeplyobservingthemindsetofChineseluxuryconsumersandidentifyinguniqueChinesetrendswithinthebroaderglobalmarketcontext.”Asourlong-termobservationsreveal,withChina’seconomicgrowthandthematuringconsumermindset,theChineseluxurymarkethasindeedenteredanewphase.Thisphaseischaracterizedbyfurtherpopulationsegmentation,adeeperunderstandingofhigh-qualitylifestyles,enhancedbrandappeal,theevolutionofcategoryconsumptionvalues,andmorerationalpurchasingchoices.Despiteshort-termfluctuations,wecontinuetoseeagrowingcohortofChineseluxuryconsumersandadynamicluxurymarket.Bygainingaclearerunderstandingoftheseconsumerandmarketshifts,andthrougheffectivebrandeducationandcommunication,brandswillbewell-positionedtoadvancealongsideChineseluxuryconsumers,achievingsustainable,win-winoutcomes.

Prefaceo

In2024,spendingonluxuryproductsbyChineseconsumerscontinuedtogrow.Amyriadofchangesunderpinnedthis:unevendevelopmentincustomersegments,consumptionlevels,domesticandoverseasspendingratio,anddevelopingconsumptionvalues,varyingcategorypreferencesandevolvingonlinebehaviors,andanincreasinglyclearaskforbrandvitality.

Throughthecarefulcultivationofmarketforces,China'sluxuryconsumptionhasconsistentlyaccountedforone-fifthtoone-fourthofgloballuxurygoodsoverthepastfiveyears,andChina'sluxurygoodsconsumershavegainedanimportantseatattheworldtable.InspiteoftheunevengrowthbetweenspendingwithintheChinesemainlandandspendingoverseas,theimpactofexchangeratesandthereturnofoutboundtravelhavedrivenChineseconsumerstocontinuetobeactive.Digitalmediaplaysanimportantroleintheinfluencepathway.

Nowmorethanever,thecomplexityanddynamismpresentedbytheChinamarketmeansbrandsshouldcarefullyconsidertheneedsandvoicesofChineseconsumers.Inbrandcommunications,offeringthebestonlinepresenceandexperiencewillelevatebrandinfluence.

Thisyear,TencentMarketingInsight(TMI)andBostonConsultingGroup(BCG)co-presentourlatestfindingsontheChinaluxurymarket.WehopetohelpluxurybrandsthriveintheChinamarket,vitalizetheirbrandandmarketingstrategy,andwintogetherwiththeChineseconsumersforthelongrun.

Aboutthisstudyo

ConsumerresearchCasestudy&interviews

Datasource

Quantitativeandqualitativeconsumerresearch

TencentMarketingSolution

Luxurymarketexpertinterviews

Samplesize

Surveyed~2,890Chineseconsumers1whopurchasedluxurygoods2fromApril2023toApril2024

Selectedfrom1,000+cutting-edgecases

Keyoutputs

Demographics,values,needs,purchasebehaviors,andtrendsofluxuryconsumers

IndustrytrendsanalysisMarketbestpractices

1.Luxuryconsumersaged18to55acrossallcitytierswhohavepurchasedluxurygoodsinthepast12months,ThisreportfocusesonmainlandChineseconsumersandtheirpurchasingbehaviors,bothwithinandoutsideofmainlandChina.2.Luxurygoodsaredefinedasleathergoods,ready-to-wear,footwear,accessories,watches,jewelry,andlifestyleproductsfromluxurybrands;beautyandskincareproductsareexcludedfromthisstudy.

Keyluxurycategoriescoveredinthisreport。

Leathergoods

Sub-categoriesThresholdprice

Handbags

>RMB7,600

Watches

Sub-categoriesThresholdprice

Watches

>RMB15,000

Jewelry

Sub-categoriesThresholdprice

Jewelry

>RMB9,000

Footwear

Sub-categoriesThresholdprice

Footwear

>RMB2,300

Accessories

Sub-categoriesThresholdprice

Sunglasses/eyewear/

scarves/smallleathergoods

>RMB1,400

Ready-to-wear(RTW)

Sub-categoriesThresholdprice

Outerwear

>RMB10,000

Dresses

>RMB9,000

Suits/sets

>RMB12,000

Sweaters

>RMB3,000

Shirts/T-shirtsandothertopwear

>RMB1,500

Skirts/pantsandotherbottomwear

>RMB1,900

Note:Thresholdpriceisprovidedforresearchandluxurydefinitionpurposesonly

Keyfindingso

1.Evolvingluxuryconsumers

?Theinfluxofnewluxuryconsumershascontinuedataslowerpace.Heavyspendersaredrivingoverallgrowthwitha12%increaseinpercapitaspending.Age-wise,consumersover30contributemostofthegrowth.

?Notably,thenewwealthconsumersegmentnowaccountsfor20%ofthecustomerbaseandover20%ofspending.

2.Developingconsumptionvalues

?Chineseconsumersstillprioritizetangibleproductsoverexperiencescomparedtoconsumersinmaturemarkets.InH12024,investmentpieceslikejewelryandleathergoodssawthehighestgrowthinpenetration;RTWandfootwear,valuedfortheirversatility,alsorecordedgrowth;salesofaccessoriesandwatchesdeclined.

?Ininstanceswherethereisadecline,previousbudgetsarebeingredirectedtowardsalternativebrandswithinthesamecategory(45%),otherproductcategoriessuchaselectronicsandbeauty(28%),andexperiences(27%).

3.Purchaseflowsbetweenmainlandandoverseas

?ByH12024,52%ofmainlandChineseconsumershadboughtluxurygoodsoverseas,contributing40%tooverallspending.JapanandSouthKoreahavereplacedSoutheastAsiaasthesecondandthirdmostpopularoverseasdestinations.

?Whilenearlyhalfofallconsumergroupsshopoverseas,over80%ofmainlandChineseconsumersbuyingoverseasconducttheirresearchfromwithinthemainland,withover90%relyingononlinemedia.

4.Onlinegainingground

?BrandOnlineremainstheprimarychannelforstimulatingconsumerinterestin2024(86%).

?ConsumersshowincreasedinterestinbrandconceptandKOL/celebritycontent,secondonlytobrandadvertisements.

5.Growingdemandforbrandvitality

?Weidentifiedthetop3elementsconsumersvalueinbrandvitality:Arebrandsleadinginaestheticsandlifestyle?Arebrandsstayingontopofmegatrends?Arebrandsengagingwithlocalculture?

In2024,Chinese

consumersare

expectedtodeliveratotalofRMB572

billioninluxury

consumption,up4%fromlastyear.

Chinahasaccountedfor20%-25%oftheworldluxurymarketforfiveconsecutiveyears.

Despitethedouble-digitdeclineofthe

domesticmarketduetooverseastravel

andshopping,

consumergrowth

hasnotstoppedin

numbersorquality.Weidentifiedfivekeytrends.

Contents

Insightsinto?.

PART0108

2024chu-

PART02

11

PART03

44

Implicau.

2024China

luxurymarketoverview

Overallmarket

LuxuryspendingbymainlandChineseconsumersisprojectedtogrowby4%in2024

+4%

572

Annualizedgrowthrates

550

520

AnnualluxuryspendingbymainlandChineseconsumers

(inbillionRMB)

ContributiontoworldmarketbymainlandChineseconsumershasstabilizedat20%-25%since2020

+2%-4%

+20%-30%

470

420

340

201920202021202220232024E

Keychanges

Numberofnew

buyersupby6%

Consumers

Stagnantgrowthinnumberofheavyspendersamongexistingbuyers

12%increaseinaveragespendingperheavyspender

Stagnantordeclining

Spending

spendingamongnewluxuryconsumersand

medium/lightspenders

Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

9

Overallmarket

MainlandChineseconsumers’overseasspending1surgedinH12024;itremainstobeseenwhethercurrenttrendswillcontinueinH22024

AnnualluxuryspendingbymainlandChineseconsumers1

(inbillionRMB)

OverseasDomestic

Scenario2

Overseas

spending

drops

572

47018%

4206%

7%

340

92%

94%

93%

43%

70%

Historicalperformance

60%

40%

30%

Scenario1

Spending

remains

asis

520

8%

82%

572

550

57%

2019

Overseas

spendinggrowth

Domestic

spendinggrowth

2020

2021

2022

2023

2024E

2024E

?Domesticmarketinginitiativesofluxurybrands

-84%

33%

-25%

233%

131%

72%

FactorsaffectingoverseasluxuryspendinginH22024

?JapaneseyenexchangerateinH22024

?Globalpricingstrategiesofluxurybrands

?Overseassalespoliciesofluxurybrands

?Globaltravelerflowvs.destinationstocklevel

167%

-8%

2%

-24%

-11%

23%

10

1.IncludesluxurypurchasesmadebymainlandChineseconsumersinHongKongSAR,MacaoSARandTaiwanSources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

Insightsinto

China’sluxury

consumptiontrends

FivekeytrendsintheChinaluxurymarket

01。Evolvingluxuryconsumers

02。Developingconsumptionvalues

03。Purchaseflowsbetweenmainlandandoverseas04。Onlinegainingground

05。Growingdemandforbrandvitality

Trend#1

Evolvingluxury

consumers

Consumers

Shareofnewluxurybuyers1downthisyear,theirspendingcontributionloweredby4%;averagespendingpercapitadecreasedby2%overall

Dropintheshareofnewluxurybuyers1andtheirspendingcontribution

Averagespendingperconsumerhasdeclined

Spendingcontribution,

newvs.existingconsumers

1%

New

Existing

20232024E

Consumerbreakdown,newvs.existing

20232024E

99%

95%

95%

93%

7%

5%

5%

Averageluxuryspendingperconsumer,2023vs.2024E

YoY%

New

consumers

80%areunder30years

old;90%arelightspenders2

-7%

Existingconsumers

-1%

Overall

-2%

14

1.Madefirstluxurypurchaseinthepast12months;2.Annualluxuryspending:heavyspenders>RMB300k;mediumspenders:RMB50k-300k;lightspenders<RMB50kSources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

New

consumers

Whileentrycategorymaydifferbygender,allnewbuyerstendtomakerationaldecisions,favoringversatile,durableinvestmentpieces

Majordifferencesbetweenmaleandfemaleconsumers

Top3categoriesforfirstluxurypurchase

Top3reasonsforfirstluxurypurchase

Top3newattitudeswhenbuyingluxury1

Newfemaleconsumers

Newmaleconsumers

1

Needdurable,qualityitems

Upgradingasincomegrows

Gifting

Increasedexposuretoluxury-appropriateoccasions

30%

24%

13%

Handbags

Footwear

Jewelry

24%

2

Needtofitformultipleoccasions

21%

3EnjoypurchasingitemsfromnewcategoriesStrongwillingnesstoexplorenewcategories

21%

Watches26%

25%

21%

Footwear

Handbags

Upgradingasincomegrows

Socialinfluence

Increasedexposuretoluxury-appropriateoccasions

38%

Needdurable,qualityitems

Needtofitformanyoccasions

3PrefercategoriesessentialforqualitylifestyleFavoringpurchasescontributingtoqualityoflife

1

25%

2

18%

Mostlyentry-levelwatches(underRMB10k)

15

1.Analyzedchangesinconsumerattitudestowardsluxurypurchasesthisyearcomparedtothepasttwoyears,andcategorizedconsumerresponsesinto5levels.Scoreddisagreementnegativelyandagreementpositively;summedupthescoresandrankedtheresultsbasedontotalscore.Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

Existing

consumers

Heavyspendersdrivegrowthwitha12%increaseinaveragespending,whilemediumspendersshowanotabledecreaseinspending

10%ofheavyspenderscontribute45%oftotalluxuryspending

Drivenbyincreasedaveragespendingperheavyspender

ExistingconsumerbaseSpending

Heavyspenders1

Heavyspenders

Mediumspenders

Mediumspenders

Lightspenders

Light6%7%

20232024E20232024E

spenders

48%

45%

40%

36%

35%

54%

53%

55%

10%

11%

Averageluxuryspendingperconsumer,2023vs.2024E

YoY%

Heavyspenders

45%ofmediumspenderscut

spending,buyinglessandmore

thoughtfully

Light

spenders

Mediumspenders

+12%

-17%

Flat

16

1.Annualluxuryspending:heavyspenders>RMB300k;mediumspenders:RMB50k-300k;lightspenders<RMB50kSources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

Existingconsumers

—mediumspenders

Similardistributionacrossspendtiers,butdownwardtrendinpercapitaspending;consumersbuyinglessbutmorethoughtfully

Breakdownofmediumspendersbyannualluxuryspending

(2023vs.2024E)

20232024E

RMB200-300k

RMB150-200k

RMB100-150k

26%

RMB50-100k

32%33%

22%

22%

28%

19%

19%

Shareofmediumspenders

cuttingluxuryspendinginthe

past12months

45%

ofmediumspenderscutspendingto

varyingdegrees1

Top2consumptiontrendsformediumspenderswithdecreasedspending

?Accessoriespenetrationisdownby15points

comparedto2023

?High-endwatches,seasonalouterwear,bottoms,andleathergoodsshowslightdecreasesin

penetrationby1-2points

Mostmediumspenderscuttingbackonspendingstillbuyluxury,buttendto

makemorerationalpurchasedecisionsalignedwithpersonalvalues

Moreselectiveoncategorylevel

“IfocusoncategoriesIconsidertrulyimportant”

Moreselectiveonproductlevel

“I’mbuyingless,butmore

selectivewitheachpurchase”

Lessprioritizedcategories

32%

60%

17

1.Thedecreaseinspendingrangesfrom5%to50%,withmostmediumspenderscuttingspendingby5%to30%Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

AGEAge

Consumersover30drivegrowthwithincreasedspendingpercapita;consumersunder30increasedin

numberbutdecreasedtheirpercapitaspending

Luxuryconsumerbreakdownbyage

Impactofchangesinnewandexistingconsumermixonluxuryspending

Breakdownofchangesinannualluxuryspending

(inbillionRMB)

over30

52%50%

572

550

21

286

264

51

-57

7

Existing

Consumers

over30

New

New

consumers

over30

2023

2024E

Existing

under30

consumers

under30

48%50%

consumers

under30

2023percapitaspending

2024percapitaspending

1.2X

over30under30

1.0X

0.8X

20232024E

Consumersover30aremajorgrowthdrivers

Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

18

Wealth

Newwealthconsumersrepresent20%ofluxurybuyersand23%ofspending,withdifferentprofilesandneedsfromtraditionalwealth

Sizeandspending

Newwealth

Wealthderivedfromemergingtech-drivenindustriesthathavedevelopedrapidlyinrecentyears

E.g.,Internet,biopharma,IT,professionalservices,advancedmaterials,energyconservationandenvironmentalprotection,newenergy,digitaleconomy.

23%

20%

Newwealth

Mostworkincorporatemanagementorprofessional/technicalroles,preferpiecessuitablefortheworkplaceandthatmeetpersonalneeds;theytendtobemoreopentonewbrandsande-commerceshopping,andshowgreaterinterestinKOL/celebritycontent

Sourceofwealthandconsumerprofile

Wealthderivedfromtraditional,establishedindustries

E.g.,naturalresourceextraction,equipmentmanufacturing,construction

engineering,textileandgarment,processingandmanufacturing,realestate.

Traditionalwealth

Valuesocialneedsandprivatesocialnetworks;preferofflineshoppingfromselectbrands

80%

77%

Traditionalwealth

2024

spending

2024

Consumer

base

Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

19

Wealth

Newwealthvs.traditionalwealth—Divergingprofilesinprofession,brand&categorypreferences,andshoppingbehaviors

TriilalConsumerprofileVSConsumerprofileh

%workingin Professional/technicalroles

Purchasedanaverageof5.4luxurybrandsinthepastyear

Categorieswiththemostsignificantdifferences

(newwealthvs.traditionalwealth)

態(tài)動向流的費消品侈奢

49%

Informationsource

KOL/celebrityPrivatesocialnetworks

Morewillingtopurchasethroughdomestice-commerceplatforms(24%vs.17%)

Higherpenetration(33%vs.24%)ofcategoriesrelatedtoworkplace(suits)

“Awell-fittingstylishsuitcanelevatemyprofessionalimageandhelpboostconfidenceatwork”

%workinginmanagementroles

Categorypreference

Occupation

Purchase

Brand

42%

22%

60%

%workingin Professional/technicalroles

Purchasedanaverageof5.2luxurybrandsinthepastyear

Categorieswiththemostsignificantdifferences

(traditionalwealthvs.newwealth)

Higherpenetration(52%vs.45%)ofcategoriesreflectingsophisticationandquality(footwear)

“Shoesarethemosteasilyoverlookedpartofalook,butinfactshoessayalotaboutaperson'scharacter.Iwanttolookgreatfromheadtotoe”

44%

Informationsource

KOL/celebrityPrivatesocialnetworks

MorewillingtopurchasethroughbrandWeChatminiprograms/SAWeChatchannels(10%vs.7%)

%workinginmanagementroles

Categorypreference

Occupation

Purchase

Brand

24%

35%

58%

Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

20

Trend#2

Developing

consumptionvalues

Consumption

valueincontext

Consumers’understandingof“qualitylifestyle”expandsfromgoodstoservicesandexperienceastheirluxurytenureadvances

Penetration

Depthofcolorindicatesthe%ofconsumerswhochooseanoptionineachcategory;thedeeperthecolorthegreatertheshare

High

Low

Lifestyle

Type

Light

Medium

Heavy

GoodsServicesExperience

Luxurygoods

Healthfood

Customproducts

Newtech

Luxurycars

Luxuryhomes

Luxuryfoods

Everydayservices

Customservices

Innovativeservices

Fitnesscoach

Securityservice

Premiumsocialevents

Art

collection

Luxuryevents

Self-

improve-

ment

37%

40%

23%

31%

14%

15%

17%

24%

25%

19%

26%

14%

21%

19%

17%

15%

52%

42%

38%

33%

24%

22%

25%

40%

34%

26%

31%

22%

31%

25%

19%

19%

59%

55%

49%

38%

32%

29%

26%

44%

41%

36%

28%

28%

40%

40%

27%

27%

VICsindevelopedmarketsalreadyshowstronginterestdrivenbyexclusivebrandexperience(e.g.,VICsbecomebrandambassadors,andattendtailoredcultural&entertainmentevents)

TheneedsofChineseconsumersinthisregardareatarelativelyearlystage

Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

22

Category

Leathergoodsandjewelrysawthebiggestgainsinpenetration;RTWandshoesalsorecordedgrowth;salesofaccessoriesandwatchesdeclined

Jewelry+6%

1.6X

+1%

55%56%

20232024E

Optedfor

pricierproduct

Leather

goods

+7%

Growth

Indexedovermarketavg.

1.7X

Categorypenetration

Change

in

quantity

Price

preference

change

-2%

54%52%

20232024E

Consumerspent

despitepriceincrease

Accessory-1%

0.7X

-13%

67%68%

55%52%

35%

20232024E

Whenona(limited)budget,consumerstendedtochooseproductswithlowerpricesornon-luxurysubstitutes

Watches-3%

Shoes+3%

RTW+3%

20232024E

20232024E

20232024E

49%50%

-0.7X

-0.2X

0.6X

48%

+1%

+1%

-3%

Numberofpersonsingraphindicatesthedegreetowhich“consumersboughtproductsatmoreexpensiveorcheaperprice”

Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

23

Luxury-growth

categories

Fromsocialoccasiondrivenin2023tovaluedrivenin2024:Resalevalueisatopconcern,thenfitformultipleoccasions(1/2)

Overall

Growth

change(%)

-7%

+5%

-2%

-1%

+1%

-2%

+3%

-5%

+2%

-2%

-1%

+5%

+1%

+2%

+10%

+2%

+1%

-1%

0%

+18%

-2%

+5%

+2%

-1%

+18%

-1%

+2%

+1%

0%

+12%

-2%

+3%

0%

-1%

+6%

-2%

+1%

-1%

-1%

+8%

+1%

+1%

+3%

+1%

+6%

Ready+3%-to-wear

Shirts/T-shirts+2%

LightMediumHeavy

Handbags-2%

Jewelry+1%

under30yearsold1

over30yearsold1

Skirts/pants

Leathergoods

Sweaters+1%

Jackets-1%

Dresses+2%

Shoes+1%

Jewelry+6%

Shoes+3%

categories

Suits

+1%

+2%

+7%

Netpenetrationchange(%)insub-categories,2024vs.2023

“Facedwithcheapercompetitioneverywhere,ready-to-wearclothessawgrowthslow;comparedtolastyear,growthin

penetrationcamemainlyfromconsumersover30andheavyspenders”

“Simplerready-to-wearstyles,orthosewhicheasilygowith

differentdesigns(e.g.,dresses,shirts&t-shirts,suits)retainedorgrewpenetrationinmedium/heavyconsumers”

“Theready-to-wearclothesmarketisincreasinglycompetitive,especiallyrelativelyfixed-occasionwearlikesweatersand

seasonaljackets;here,consumerstendtoswitchtocheaperalternatives”

“Jewelryhashighresalevalueandtargetsaconcentratedsegment;high-endconsumersaremorewillingtoinvestinexpensiveitemsthisyear”

“Well-fittingshoeshelpthebrandlockincustomerloyalty,butasconsumerssetalimitedbudgetforitemsthatneedfrequent

replacement,theytendtochooselower-pricedproducts”

“Risingpricesofleathergoodsfilteredoutsomeconsumers,butmostofthosewhocanaffordthings,continuetobuy”

Expertviews

24

1.Toreducethedeviationsarisingfromdifferentagegroups,theagedistributionherefor2024wasadjustedbasedontheproportionsfor2023Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

Luxury-declinecategories

Fromsocialoccasiondrivenin2023tovaluedrivenin2024:Resalevalueisatopconcern,thenfitformultipleoccasions(2/2)

Netpenetrationchange(%)in

Overall

change(%)

Decline

categories

Sunglasses/scarves

Accessories-1%

-13%

High-endwatches

Watches-3%

-3%

sub-ca

under30yearsold1

tegories,

over30yearsold1

2024vs

Light

.2023

Medium

Heavy

-14%

-12%

-11%

-15%

+3%

-1%

-4%

+1%

-2%

-21%

“Accessoriesareamarginalcategoryforboth

consumersandbrands;everybodyisspendinginamorerationalwayinkeycategories;apartfromheavyspenders,penetrationhasfalleninallothersegments”

“Watchgrowthhashitawall;watchesarelesspowerfulasastatussymbolandsoheavy

spenderpenetrationinparticularhasnosedived,butlightspenders(especiallyunder30s)withaneedfortherightoccasionwillstillbuy”

Expertviews

Sources:2024TMI×BCGLuxuryConsumerSurvey(N=~2,890);desktopresearch;BCGanalysis

25

Luxuryproducttrends

Spendoutflowwenttothreeadjacentalternativesfor“qualitylifestyle”

Tootherproductcategories

Toexperientialpurchases

Toimmediatelyadjacentproductcategories

28%

Totalspend

outflowincidence

+

+

45%

27%

23%

12%

towardshigh-endready-

to-wearclothingor

designerbrands

towardsfunctionalbrands,e.g.,sportsshoesoryogawear

=

Cars,toys,electronics,

smallhomeappliances,

beautydevices,etc.

Travel,F&B,learningandself-

improvement,beauty&care,sportsand

entertainment,etc.

6%

4%

100%

towardsgoldjewelry

towardslightluxurybrands

“Ilikenewcellphonemodels,

SiemensSmartHomeproducts,Dyson’shairdriers,NIOcars;allthesecombinedmakeforahigh-qualitylifestyleandI’mhappytopayforit”

“Iwanttospendmymoneyoncreatinggreatexperiencesandmemories;lastyearIwentto

ItalyanddinedatseveralBlackPearlrestaurants;thisyearI’mgoingtomorenewplaces”

“AcneStudios’designsandtailoringarejustasgoodasluxurybrands;

Shushutongwentviralafter

Blackpinkworeit;