Consumer confidence in China might be down, and massive youth unemployment hurts the economy, but not for all consumers gloom is the message. Marketing expert Ashley Dudarenok sees prospects for high-net-worth individuals (HNWIs) – compared to the middle class – within the luxury market, she tells in the Jing Daily.
The Jing Daily:
As China’s recovery proves to be less robust than initially anticipated, a notable contrast emerges in the spending patterns between high-net-worth individuals (HNWIs) and the middle class within the luxury market, says Ashley Dudarenok, China digital marketing expert and founder of China digital marketing agency Alarice.
“High-net-worth consumers in China demonstrate a stronger appetite for luxury goods and contribute significantly to the market’s consumption power,” Dudarenok says. “Their purchasing decisions are driven by the desire for status symbols, exclusivity, and a sense of identity. On the other hand, the middle class, facing greater economic pressures and more cautious sentiments, may exhibit more restrained spending behaviors.”…
However, analysts have raised concerns over high youth unemployment in China. A recent Goldman Sachs report revealed that the youth unemployment rate (16-24 year olds) surged to 20.4 percent in April, posing a significant challenge for the country’s economic recovery.
Dudarenok says: “Concerns over youth unemployment may impact the purchasing power and willingness of younger consumers to engage in luxury spending. However, factors such as improving consumer confidence, accumulated savings, and marginal improvements in employment and income can provide some support to the recovery.” …
“Despite the uneven recovery, the Chinese market remains active with the largest consumer base, presenting an opportunity for brands to achieve significant success. Brands should understand Chinese consumer preferences so that they can tailor better their marketing and attract more consumers,” Dudarenok says.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.
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