What is the world’s largest luxury market with the most important amount of luxury shoppers? Obviously, China. In truth, Chinese shoppers spent 741 billion yuan on luxury items in 2021. Many brands enter the Chinese market without figuring out the bag developments in China and the excessive competition occurring. Per category, China has the largest variety of opponents. So for luxury handbags, brands will face between 5 to 10 instances extra rivals in China compared to their home market.
If you need to be a pacesetter in your market, you should stay up to date with the current Chinese tendencies. Today, we are going to allow you to navigate via the trends of the handbags market in China.
Key Figures on the Luxury Bags Market in China
In China, the success of a bag is a combination of promoting and design. It could be a land of opportunity only if you understand the local codes and consumers’ preferences for luxury consumption. As a matter of fact, the average amount spent on a luxury handbag is roughly three 435€ (27.000 RMB). For the Chinese shopper, the handbag is the key accessory to indicate off comfortable purchasing power.
Luxury brands typically plan to launch an “it bag”. In China, this phenomenon is tough to anticipate. Especially as a result of the main criteria for buying a leather items product are Design (56%), Brand (47%), and Materials (45%). Chinese shoppers are delicate to design trends, KOLs suggestions, private social groups, user-generated content on Little Red Book and a lot more.
According to Daxue Consulting, China’s luxury items market accounted for 21% of the worldwide market in 2021, and luxury leather items have been one of many luxury categories that recorded the fastest growth of 60%.
The top 5 bags and leather goods luxury giants are Hermès, Louis Vuitton, Gucci, Dior and Chanel handbags. By far, Hermès has the most important brand consciousness within the leather goods category. This is mainly as a outcome of distinctive item design and brand status in China. 68% of luxury customers in China purchase no much less than one handbag per season.
Top 10 Luxury Handbags Trends in China to Follow in If you are interested in fashion, you ought to not miss the ten new trends for luggage in 2022.
#1 UNISEX BAGS – Chinese Luxury Consumers are Looking for Fashion Inclusivity
Driven by Millenials and Gen Z, unisex bags is a growing development. In China, it is rather frequent for stylish couples to hang out in the same outfit. They like to exchange their clothes and accessories. In this case, men feel extra sophisticated by utilizing women’s bags and ladies love men’s versions for being extra effortless and casual.
As you can see, some luxury brands have already adopted this trend by launching genderless bags:
* Fendi: Peekaboo
* Dior: Saddle Bag
* Loewe: Puzzle Bag
* Louis Vuitton: Soft Trunk Collection
For a brand new launch in 2022, you want to undertake the unisex bag pattern. While decreasing manufacturing prices, you can enhance your brand visibility and notoriety.
On social media, the Chinese are in search of unique content. Your campaign can concentrate on a artistic way to introduce the bag to each women and men from youthful generations. Why not launch a trend? Little Red Book may be very useful for user-generated content material primarily based on challenges or trends. You can create a hashtag and convince prospects to share it on their accounts, exhibiting luxury items to their followers.
#2 DESIGN – The Most Important Criteria for Purchasing Decision
In the leather items market, design prevails over the brand. This is a typical mistake to assume that Chinese customers are solely excited about luxury brands, regardless of the design of the luxurious goods they produce. They are far more educated on every brand DNA, values, and heritage. Even in the event that they like your brand, it isn’t sufficient. You need to have a novel, recognizable, and revolutionary design.
Mr. Bags: The Trends Decision Maker in China
In the Louis Vuitton case, the brand is already well-known in China. So after they launched the Multi Pochette Accessoires, it was supposed to be an it-bag. Well… Chinese younger consumers are meticulous.
Even if the new launch reached over 8K mentions on Little Red Book, the comments have been mainly composed of criticisms as a end result of the design was not appealing. Some Chinese consumers even wrote to the brand that fashions had been much less attractive carrying the bag… Bad buzz!
If you need to promote your handbag assortment, you definitely have to look after your branding and your e-reputation. In China, you have to build robust and optimistic visibility. You should all the time remember that Chinese netizens spend 6 hours online per day. They won’t ever buy your product if you don’t exist on the web or if you fail at building a great picture. This is where the significance of a Chinese community supervisor lies!
#3 NICKNAMES – A Passion for Giving Chinese Names to International Bags
Luxury brands are at all times promoting their brand heritage by giving their bags French, English, or Italian names. A great choice for the brand image… which will get a robust impact on gross sales in China. Why? Because the majority of Chinese clients can encounter difficulties saying a world name. The extra complicated your name is, the much less Chinese will talk about your brand.
The frequent pattern is to provide nicknames to bags based mostly on popular culture, translation, or general design. The custom of Chinese nicknames is reinforced by the opportunity to give a story to a bag and add some fun… Especially on Weibo and WeChat, where netizens have a great humorousness as you’ll have the ability to see:
When you enter the Chinese market, you should be aware of those habits. If you understand the key criteria behind these nicknames (easier to say, humorous, linked to the bag story, etc) you’ll have the ability to higher perform. Why not suppose ahead?
Now, that you do understand this trend, you can take control of this pattern. We may help you do a brand audit and perceive the names given to your brand… And why not create your personal Chinese nickname?
#4 GIMMICKS – Chinese Have an Aversion to Culture Misunderstanding (luxury brands are involved too!)
Chinese people are pleased with their country and their tradition. Luxury brands often need to propose China-only collections with personalization or extra elements linked to Chinese tradition. Sometimes, an area focusing on technique can turn into a clumsy gimmick… The most tricky one is the Chinese character as Dior experienced it.
Dior Case Study: Chinese Gimmicks on the Customizable Book Tote
In 2018, Dior launched the Book Tote and the Diorcamp handbags with Chinese characters restricted version. The brand wanted to allow Chinese customers to have customized bags. Well, the message perceived by Chinese luxury shoppers was completely different… For them, this bag was old-fashioned, cheap, and even in comparison with a “counterfeit” product. In this case, even a partnership with the top KOL Angelababy was not enough to increase sales.
Once once more, you should understand Chinese tradition to keep away from errors. Proposing a restricted edition with Chinese characters is well-intended but failed because of the lack of a premium picture. If you propose to launch a new product in China, you better must anticipate what could presumably be thought of a gimmick. For that, you higher be enthusiastic about China and observe market insights to concentrate on all buying habits of your customers!
#5 VINTAGE – The Great Comeback for Fashion Bags in China 2022
This development is already seen within the West with the comeback of the sportswear brand Champion, for instance. The appetite for classic is specifically bolstered within the bags market in China. Chinese have the sensation that they opt for a product with a history behind it and can show their great taste by figuring out the brand’s previous collections. Who is the professional between the particular person who purchased the fashionable new Dior versus the luxurious vintage Hermes?
You ought to at all times remember to regulate your classic collections, as luxury consumption within the second-hand and classic section is growing rapidly, especially among younger individuals. It is a way for less wealthy Chinese to purchase your merchandise, together with Millenials and Generation Z. But additionally you create a brand attachment. People know your brand by heart and really feel extra confident sporting your former collections.
#6 ART – The Chinese Fashionistas Addiction to Artistic Campaigns
The product universe is every thing in a communication campaign in China’s luxury market. The extra your marketing campaign show art components, the extra your product will be reminded. The O2O campaigns are key in China.
When Prada launched its new bag Cleo for Spring-Summer 2021, the communication campaign was built around highly effective black and white footage from celebrities, KOCs, and random people. The hashtag linked to the campaign reached eighty million views on the first day and targeted 260 million followers.
You can use Weibo, WeChat, and Little Red Book to promote your handbag marketing campaign. Social media are a never-ending alternative for you to suggest inventive and artistic content.
You can invite your group to propose user-generated content material on Xiaohongshu (Little Red Book) or interactive high quality content on Douyin (the Chinese Tik Tok). In the meantime, Cartier did exactly the same by launching a campaign “Make your individual path” with a dance battle on Douyin.
#7 SECONDHAND – Chinese are Looking for Low Price Treasures
In the West, secondhand is an rising trend. Fashion brands are increasingly more sensitive to providing their very own secondhand line. Gucci is planning to launch its own secondhand offer and LVMH is considering this concept and looking for a logistics companion.
In China, the secondhand trend is directed in course of fashion, but also bags! This can be an opportunity for niche brands to shine in China, as the marketplace for secondhand luxury items is pretty new in Greater China.
This development is pushed by Millennials. These young Chinese customers are more environmentally conscious and in search of affordable luxury items.
For example, the Gucci GG Marmont bag was available at a value of 728 USD in comparison with 2,250 USD. This is the primary step into luxury purchases for them. In China, the secondhand market solely accounts for 5% of the luxurious market. This pattern is increasing barely with the arrival of secondhand luxury platforms like Plum.
As a luxury brand, you should not be afraid of the secondhand market, as luxury shoppers are increasingly involved on this sector. You can take the lead on it. You have the opportunity to promote your unsold bags and faulty articles via the secondhand market.
There is an opportunity for added gross sales. How? You could make a partnership with Sun Shaqi, the highest live streamer for secondhand reaching 6.5 million followers on the Chinese TikTok, Douyin.
Sun Shaqi, a famous KOL in China displaying second-hand luxury leather goods on a live stream#8 LIVESTREAMING – The Excitement across the “See Now Buy Now” Opportunity
Obviously, this development isn’t proper for the bags market however the sales generated by live streaming are large for this section. KOLs assist to create excitement around the release of a brand new bag by presenting it to its neighborhood.
In 2017, the top KOL Tao Liang also named Mr. Bags (1.2 million followers on WeChat) promoted the special edition released by Burberry on WeChat. The bag’s limited edition was sold out in lower than 10 minutes.
With an annual progress of 119% in 2020, reside streaming is a digital tool you need to master. To be clear, you can not propose a reside stream without being prepared. You need to build a powerful strategy with a KOL or KOC partnership, a special offers offering, and user-generated content material (UGC) invitation.
#9 KOL – The Virality of Chinese Influencers’ Lifestyle
In China, a celeb endorsement is very worthwhile. But what’s the main level Chinese will value? Celebrity dressing. 82% of Chinese people are influenced by the best way a KOL is dressed.
Gucci Case Study: The Bag Carried by Zhan Xiao
The importance of movie star dressing explains well the virality of some bags. For example, Zhan Xiao created the buzz around the Gucci Camera bag throughout Milan Fashion Week. This bag was then referred to as “肖战同款”, which literally means “the bag carried by Zhan Xiao to the show”. Many Chinese shoppers confessed that although they don’t appreciate the Gucci brand, Zhan Xiao dressing encouraged their purchase.
Did you notice a development we talked about earlier? Yes, Chinese nicknames! You can build an impactful advertising strategy by combining KOL and nicknames developments. Chinese shoppers will keep in mind your bag higher in the occasion that they saw it on a celebrity they love. Virality can improve brand awareness and attractivity.
If you’re afraid of doing a partnership with a KOL or movie star, you should know that only 4% of Mainland China luxury shoppers will lower their purchase intentions based mostly on figuring out it’s a paid collaboration.
#10 USER CONTENT – The Success of UGC Among Chinese Netizens
In 2022, luxury brands will want to differentiate by proposing each UGC and PGC content. In a word, PGC is Professional Generated Content, which is the official content created by your brand. Chinese are sensitive to it for the magic and experience encapsulated in it.
As a matter of fact, you want to keep in thoughts that Chinese purchases are socially driven. If they only see official content and never person content material they will not be attracted by your brand.
If you want your bag brand to obtain success in China, you should put together a brand audit. Is your brand visible on Weibo? What are the buying reviews in your bags? The more prepared you are, the extra successful you’ll be. You have to contact an area agency to care for your e-reputation and monitor the UGC content.
Need to advertise your Luxury Bags Brands in China?
GMA is a digital advertising company focused on the Chinese market. Our staff can provide you with a quantity of services: from brand audit to KOL advertising, visit our website to understand how we might help your brand to reach China.
We have experience working with greater than 600 brands from many alternative industries. We supply a person approach to your project, so you presumably can expect a tailor-made technique on your brand in China.
Here are some of our case research in luxury items:
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