Chinese shoppers are reflected on a fashion boutique's window panels as they walk through the capital city's popular shopping mall in Beijing, . U.S. President Donald Trump expects to meet with his Chinese counterpart Xi Jinping to try to resolve a six-month trade standoff after U.S. and Chinese negotiators ended two days of talks Thursday without settling the toughest issues that divide the world's two biggest economies. The White House says the two countries made progress but "much work remains to be doneUS Trade, Beijing, China - 01 Feb 2019

BEIJING — Working with Tencent, Chinese online e-commerce platform Secoo has new findings about how best to appeal to the diverse groups of Chinese high-end shoppers, breaking down the outsized luxury market into four key segments.

“If we want to win this market, it’s not just delighting one kind of consumer,” said Nicole Yang, Secoo’s chief marketing officer. “You need different strategies for different subgroups.”

Nicole Yang, Secoo chief marketing officer.

Nicole Yang  Courtesy

Here, Yang breaks down the market:

1. Delicate Piggy Girls

A nickname derived from Internet slang, this group is comprised of mostly young females who purchase an average of 5.7 times a year, spending about 5,000 renminbi, or $742 at current exchange, each time.

They like to mix high and low, although their buys are concentrated mainly in makeup, fragrance and bags. They are generally passionate about learning more about luxury goods and once convinced, can become strong advocates for the product, spreading it on social media.

“The dedicated piggy girl, they are very interested in all the celebrity gossip and TV series, entertainment, and all the things related to celebrity,” Yang said.

2. The Trendy Cool Men

This group of men only make purchases on average 4.8 times a year, but the average value of their basket is very significant. It’s among the highest at Secoo averaging 11,000 renminbi, or $1,633 at current exchange, per purchase. The categories they are interested in are highly concentrated, and they tend to buy clothes for themselves, sports items and watches. They are big aficionados of gaming, cars and ball games.

“They buy with less consideration,” Yang said. “They don’t want to spend so much time to compare or to think. Once they think this product, this price, and this service meets my needs, they’ll click. But ladies, we think this is one option, here’s another second option and third option. They will do the homework. On our e-commerce platform, we can calculate how many pages the consumer views before they purchase and there’s a huge difference between males and females. The female consumer averages viewing 70 to 80 pages, while the guy is only 30 pages.”

These men don’t like social networking as much, are less likely to share information, and often interact in smaller circles. They consume information focusing on topics like technology, the military and international news, and also this group tends the most to be night owls.

“They are more loyal to one platform,” Yang added. “If they think this platform is good, the user experience is good, they will stay on it. But for lady consumers, although everything may be good, they still will like to try new platforms or new brands.”

3. The New Middle Class

Most of this group is highly educated and married with kids. They like to demonstrate their status and taste by acquiring luxury goods. The annual purchase frequency is more than 20 times, averaging around 6,000 renminbi, or $890 at current exchange, per purchase. They buy everything from luxury shoes and clothes to high-end household goods, travel and outdoor gear. However, their buying pattern over time is becoming a bit more reserved. They are very well-connected socially but are less active on social media than the delicate piggy girls, likely because they need to spend more time on work and family. They consume financial and international news, travel information and content with an emotional feel good factor, whether that is inspirational stories or nostalgia-inducing material like old classic songs.

4. The New Rich

This segment shops on Secoo for luxury like how most people go to the grocery store. They buy luxury goods more than 50 times a year, or nearly once a week, and make on average more than 400 searches on the site every year. They entertain themselves with a wide variety of materials from books, magazines and movies and are also interested in cultural and art events. They regularly read business and economic news but for leisure like to read inspirational articles about religion, inner feelings and mental health.

“They are super mysterious because it only accounts for 3 percent of our consumers but contributes 20 percent of our business. The new rich’s geographic location is more fragmented. You have them in tier-one to tier-three cities, but some are in tier four and tier five,” Yang said.

She added, too, that she hasn’t noticed any deceleration in their user base, of which in 2018, 60 percent were under 30 years old.

“Last year, we grew [our top line] overall 52.9 percent,” Yang said. “We find the big macro-economy issues actually don’t really impact people at the top of the pyramid. The rich people will still keep their lifestyle even in bad economic times. We think that it will definitely keep growing. We estimate around the same pace.”

Related:Exclusive: McKinsey Says China to Account for 40 Percent World’s Luxury Spending by 2025 >>

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