In a recent interview with Salon du Luxe Paris 2020, Alexis Bonhomme, Vice President Greater China and Asia Pacific of online fashion platform Farfetch, discussed the impact of the crisis on consumer behavior in China and the prospects for marketplaces in the luxury industry. According to Bonhomme, the Chinese consumer is not only young but also one of the most sophisticated and highest spenders in the world. Their behavior has not changed significantly during the crisis, as they were already heavily reliant on mobile devices for information and making direct purchases. This behavior is facilitated by the advanced technological ecosystem in China, which includes impressive logistics and widespread adoption of mobile payment methods. The crisis has only accelerated their interest in online shopping, with a particular focus on western China.
When it comes to the resilience of the Chinese consumer, Bonhomme points out that there are generational and regional differences to consider. The emergence of the middle class in China has concentrated mainly in coastal regions, and there are significant gaps between the older generation, who grew up in communist China, and the younger generation, who are tech-savvy and global-minded. The younger generation, known as HENRYs (High Earners Not Rich Yet), have significant purchasing power and are less likely to be affected by the crisis. Luxury brands like Hermès, Chanel, Dior, and Louis Vuitton are experiencing a resurgence in demand, as they are perceived as safe haven and investment brands by Chinese consumers. However, other brands focused on social status and pleasure may be more impacted.
Despite the initial slowdown in China, the luxury market is now experiencing a significant recovery. This is partly due to the approximately 150 million Chinese tourists who are currently unable to travel and are spending within their borders. Bonhomme emphasizes the importance of not overlooking this domestic consumption. In conclusion, the Chinese consumer has shown resilience and a strong appetite for luxury, both online and in-store.
To delve deeper into the interview with Alexis Bonhomme, including topics such as the surveillance and securing of the Chinese consumer, the role of emotion in online retail, and the weight and evolution of marketplaces in the luxury ecosystem, you can watch the full 30-minute video interview on the Salon du Luxe Paris 2020 platform.
For more information on the Chinese luxury market and consumer behavior, you may find the following links useful:
1. Jing Daily: A leading digital publication on luxury consumer trends and marketing in China.
2. Business of Fashion: A global platform for the fashion industry, with in-depth analysis on luxury markets, including China.
