In HSBC Global Research Fourth China Deluxe survey, the research house did survey on 2,000 wealthier respondents on consumer aspirations for premium products for year 2022. Their respondents were primarily young (60% aged 18-34) and female (65%).
The main takeaway from the survey is that the “common prosperity” from China’s government is overall unlikely to derail growth, but it will have consequences on where that growth occurs. Espite investors’ fear around Covid-19, “common prosperity” and slowing economic growth in mainland China, the majority of the respondents are positive about their purchasing power in 2022. Operating in China may be more complex today than in pre-pandemic times but surely, growth would still be there.
The research house’s take is that, Hainan/ local consumption should have another year in the spotlight.
Did You Know that Chinese Luxury Consumers Had This in Mind?
Fun Facts
Feeling positive – 97% of the respondents expect their income to at least remain the same in 2022.
Job matters the most – Wage / salary increase rather than stock market rally or rising home prices as the main motivator for the respondents to purchase luxury. They are also more concerned about the rising cost of living than about pandemic-related restrictions.
Ready for boarding – 47% of respondents prefer traveling as one of the top three choice if their economic situation improves and 91% of respondents will buy at least the same amount of luxury goods abroad compared to pre-pandemic levels once international travel resumes.
Put on those blue suede shoes – 87% of respondents plan to spend at least the same on shoes and ready-to-wear as they did before the pandemic.
Green bucks – 89% of the respondents said they spent more money to buy a product advertised as sustainbale. They are likely to buy an electric vehicle if they were to get a car.
Hainan, we go – local duty-free stores like those in Hainan, online marketplaces and local brands have clearly benefitted from borders remaining closed. 65% of the respondents said they visited Hainan over the past two years and 42% prefer to shop for luxury in duty-free stores as one of the top three choices.
Just slightly vocal for local – 17% of respondents preferred Chinee luxury brands most.
Halo effect – Many multi-category brands such as Louis Vuitton, Gucci, Hermes and Chanel are preferred over some specialist brands in shoes and jewellery.
The latest and the greatest – 46% of respondents prefer to buy a new product from a premium brand while only 6% will settle for second-hand. Again, this 6% reinforced the view that many might be first-time purchasers and want the latest and greatest.
Getting sober – 41% of respondents said they cut consumption of Baijiu and/or beer in 2021.
