The new edition of the Phoenix Report also highlighted some emerging consumer groups in China and their spending patterns, which could be essential knowledge for brands looking to reach customers in the country. “China has a wide variety of shoppers, and it’s really important for companies to know exactly to whom they are marketing, what their income levels are, how they feel about money and what drives their purchasing decisions,” said Allison Luong of Pearl Research. “Understanding the consumer segmentation is really the first step, and then you can really do a deep dive into what it is that motivates them to buy and what other brands interest them.”
Here are four key customer groups that are leading the spending spree in China:
“This is the majority of Chinese consumers,” said Luong. “They’re both working-class and middle-class and generally very thrifty — they won’t often spend too much on high-end products because they don’t have the money. But they’re very up-to-date on fashions and gadgets and really would like to spend a larger portion of their income on luxury products. Their hobbies tend to be much more lower end — they like to play sports and mahjong. They don’t really have the money to go traveling, clubbing or skiing, even though these are things they aspire to.” Favorite brands: Haier, Lenovo, Nike.
“This name stands for ‘Chinese yuppies’ and they’re really the group at the forefront of China’s burgeoning middle class,” Luong said. “They’re concentrated in the big cities, but are also starting to populate the smaller cities around China. They’re professionals, and they’re putting much of their savings into things like purchasing homes. They tend to be into higher-end hobbies, such as golf and traveling, and they tend to have a high interest in Western products.” Favorite brands: Apple, Nokia, Chanel.
“These are the country’s big earners and big spenders,” Luong said. “They usually work in an office environment — they’re bankers, doctors and lawyers. They spend money on traveling, clubbing, drinking, eating out and luxury products. They’re really all about showing off and consumption. While traditional Chinese society has been about saving, this group is about big spending and living in the moment. They tend to be very brand-conscious and have disposable incomes of at least $500 a month, which in China is very large.” Favorite brands: Armani, Prada, Burberry.
“This is a term that was first coined in Japan for young, single females, but it also really applies to China, as well,” Luong said. “Many of them live with and are supported by their parents, hence their name. The free rent and low everyday living expenses allow them to spend their disposable income on consumer products, like clothes, cosmetics and accessories. They tend to be fashion-forward and keep up with the latest trends in magazines or on the Internet. You see a lot of women in urban centers in China that fit this profile.” Favorite brands: Louis Vuitton, Lancôme, Motorola, Gucci.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion