As the luxury market evolves, a new generation of consumers is reshaping its landscape. Generation Z (Gen Z), those born between 1997 and 2012, is emerging as a significant force in high-net-worth consumption. This demographic shift is not merely about increased spending; it involves a fundamental transformation in how luxury is perceived and experienced.
Luca Deplano, director of Agility Research and Strategy, yesterday addressed these changes in a talk hosted by the France Macau Chamber of Commerce (FMCC), emphasizing the rise of “quiet luxury.” This trend reflects a preference for understated displays of wealth and a focus on experiences rather than material possessions. As Deplano points out, understanding the mindset of affluent consumers – especially in markets like China – is crucial for brands aiming to thrive in this new environment.
Deplano’s insights reveal China’s affluent market is experiencing substantial growth. Despite recovering to pre-pandemic spending levels – 117% compared to 2019 – China still trails behind other regions like the U.S.
, which saw a 367% increase. This discrepancy highlights a nuanced recovery, with ultra-high-net-worth individuals leading the charge in luxury spending globally. “Nowadays, most brands have some sort of presence in China, but the Chinese consumer still enjoys traveling and shopping for luxury much more than other consumer,” said Deplano.
“Where do they go to purchase luxury goods? For the affluent Chine.