HOW REGIONAL DIFFERENCES DRIVE THE SPENDING OF CHINESE LUXURY CONSUMERS
- 24 APRIL 2012
Smart retailers know that Chinese luxury consumers are not all the same. They are a complex bunch. There are regional differences. Yet sometimes the differences between consumers in urban cities and those in rural cities are just as prominent, if not more. For example, consumers from Guangzhou are probably more similar to those in Beijing.
Nevertheless, we could draw some general observations about the spending habits of China’s luxury consumers based on the regions they come from.
Consumers from the South and East are usually more sophisticated since they are closer to Hong Kong and other areas of Asia where they can travel to, observe fashions, and compare prices. Furthermore, Southern consumers are more informed and do their research regarding purchases and prices.
Consumer from the North generally have stronger spending power than the South. Northern consumers are less exposed to luxury goods and places to buy them. Although not as sophisticated when it comes to luxury goods compared to their Southern counterparts, pent up demand cause spend when traveling to stock up on luxury goods. Similarly, wealthy people from rural areas of China will spend more than the more sophisticated consumers from big cities.