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As a leading business fashion authority, Vogue Business in China is dedicated to understanding the dynamics of the Chinese luxury industry, meticulously examining hierarchical structures, local lifestyles and consumer behaviours.
In line with the development of the digital economy, the consumer behaviour and purchasing power of the younger generations across China have evolved and grown in influence. Gen Z and millennials are currently among the most valuable consumer groups for luxury products, and thanks to the strategic presence of international luxury groups in the Chinese market, local familiarity with such goods has also increased in the past year. In addition to the success of handbags, ready-to-wear and shoes, which fall under relatively accessible categories, hard luxury items such as fine jewellery and watches have rapidly garnered attention, according to data from the Federation of the Swiss Watch Industry.
Owing to the economic uncertainty that remains following the pandemic, high-end products have adopted heightened value as investment pieces. Hard luxury sits firmly at the centre of that ecosystem while representing present and future opportunities for the industry in China.
While maintaining a continuous appreciation for traditional fine watch brands, Chinese luxury consumers are also paying attention to fashion watches (and their corresponding lines) from the same luxury groups. This discerning category of consumers demand watches that align with their personalised aesthetics, cater to their emotional needs and exemplify their social status.
Alongside design, branding and production refinement have become important considerations for potential customers assessing both current and future value, while exclusive price points offer up an opportunity for luxury watchmaking brands in a low-penetration, high-growth consumer market. Yet the status of this market remains in flux, strongly urging brands to engage in timely strategic planning.
This white paper, Decoding China’s Young Luxury Watch Consumer, focuses on fine watches within the realm of hard luxury, providing readers with forward-looking and profound industrial insights. We conducted a quantitative survey on luxury consumption among the younger generation of readers of Vogue Business in China. The sample size consisted of 500 participants, with Gen Z accounting for 40 per cent and millennials comprising 60 per cent. Notably, 80 per cent of the participants reported spending more than RMB 30,000 (£3,337) on luxury goods in the past 12 months. The survey included questions concerning consumer lifestyles, luxury consumption behaviour and watch-wearing preferences, purchase motivations, brand preferences and product needs.
