A recent Oliver Wyman research project shows that 50% of the Chinese shoppers of luxury accessories and fashion only entered the market in the past 12 months. More significantly, they are expected to drive more than 80% of market growth this year. Among these new customers, 40% are under the age of 25 (Generation Z, or Gen Z), and they have very different preferences and behaviors compared to their senior counterparts.

We estimate that there are approximately 5.4 million luxury accessories and fashion shoppers in China today. Of them, 1.5 million spend RMB40,000 or more a year, contributing 81% of the total spending in 2021 (see Exhibit 1).

As they were unable to travel overseas and had disposable income for spending, many Chinese were attracted to the idea of starting their luxury collections this past year. According to our research, this was in fact the key driver of growth for the domestic luxury market.

For our research, in October 2021, Oliver Wyman surveyed 3,000 Chinese luxury shoppers who had spent at least RMB40,000 in the past 12 months. Moreover, our data was supplemented with one-on-one interviews with top luxury shoppers who had spent more than RMB200,000 a year. Interviews were also conducted with sales assistants from various luxury brands across diff erent cities. The surveyed luxury goods included leather goods, ready-to-wear fashion items, accessories, and fine jewelry.