How do you define China’s millennial generation? How do they live, eat, and shop, and what’s their view on luxury? These are questions that my team at K11 and I think about a lot, and, quite frankly, every stakeholder in the luxury sector should. Understanding this group of 566 million Millennial and Gen Z consumers (the BAT Generation) is the key to unlocking the future of the luxury industry. That is why at K11 we have launched our own consulting and market research institution, the K11 Future Taskforce, to ultimately help us better understand the Asian market and how it relates to other global markets.

One of the taskforce’s recent research studies on Chinese Millennials decodes this generation’s consumption patterns and offers Western brands insights into navigating China’s retail market. The findings are fascinating and provide excellent guiding points for global brands looking to make inroads into Asia:

• The vast majority of consumers do not make impulse decisions to purchase. Chinese respondents are conscious about their purchases.
• They do not want to buy anything they don’t like or they don’t need, and most are willing to take their time to look for the right purchase, not rush into it.
• 72 percent of the respondents would care whether an item matches the current fashion trend. To succeed, it is important for designers to keep track of the overall fashion trends and to create designers which match the trends.
• Majority are not influenced by celebrity branding and fashion bloggers when it comes to their consumption decisions.
• 64 percent of consumers found the overall brand image to be very important when considering a purchase.
• The majority of these consumers make rational choices based on their own practical needs and are not easily influenced by external parties. In other words, it is difficult to change their minds at the point of purchase.
• Shopping experience matters. Salespersons play a big role in establishing an enjoyable atmosphere for consumers by offering well-rounded service. To 52 percent of the respondents, a great shoe shopping experience would make their days.
• While online stores are prevailing, findings show that brick-and-mortar stores still lead the mommy economy in China.

How does all this measure up to the rest of the world? In the U.S., for example, 35 percent of men are likely to purchase sneakers, while male Chinese BAT consumers own 4.1 pairs of sneakers each. The majority of Chinese BAT consumers use their smartphones to compare prices before purchases, while only the minority does so in the U.S. Where American consumers look at magazines, influencers, and celebrities for fashion direction, Chinese shoppers value the brand’s reputation and image. Consider this a top priority when you expand into China.

In order to succeed at retail, you need to understand the concept of “connectedness” among these millennials, and how they like to seek advice, compare prices, and research before making a purchase. Keeping these generational patterns in mind, shopping malls benefit greatly from providing digital, one stop platforms for consumers to utilize throughout their shopping experience.

In-person shopping is still paramount, and the retail experience determines the success. That said, businesses must modernize their retail approach and dedicate tremendous effort to the online-shopping experience tool.

When it comes to the success of brick-and-mortars, the biggest drivers are mothers.  In present day, the ‘mini-me’ culture is one of the most dominating fashion cultures, with parents keen to present their kids as cool and well-dressed as it is a reflection on their good taste.

When I agreed to become CFDA’s first Global Ambassador, it was because one of my personal entrepreneurial goals is to help American brands continue to build and strategically reach their highest potential on a global scale. By offering our analysis and insight into these very important markets, I strive to maximize the enormous opportunities for fashion brands as they navigate the growth of their businesses overseas. With this in mind, I hope that our network at K11, such as the K11 Future Taskforce, will help you along the way.