Out with the Old, In with the New: China’s Young Consumers
In the opening week of 2024, China’s electric car manufacturer BYD surpassed Tesla as the world's leading electric vehicle company. While the Western world aptly views this as an uptick in market competition, relying solely on this narrative risks overlooking the potent cultural forces at play. China’s young consumers, eager to redefine the notions of luxury and success inherited from their parents, are embracing Guochao: a movement celebrating Chinese heritage by infusing cultural elements into consumer products. BYD is strategically aligning with rising Guochao by offering explicitly Chinese elements; the BYD Tang CUV and Han sedan are named after ancient dynasties, and their luxury sub-brand Yangwang unveiled a logo inspired by ancient Chinese script. [1]
Chinese Artist Wang Yuyang Collaborates With Dior. Photo Courtesy: Dior.
The Guochao movement extends well beyond automobiles, particularly resonating with young consumers who are keen to interpret Chinese culture on their own terms. This discussion calls for due diligence concerning the younger generation, a demographic more nuanced than the confines of a singular movement, projected to account for 40% of the total luxury market by 2030. [2]
The West defaults to a lens of Western-style consumerism when analyzing Chinese demographics, viewing anything related to “the East” as antithetical. There are tangible repercussions to this perspective: well-respected brands like Mercedes-Benz and Gucci have faced pressure to delete campaigns for stereotyping Asian beauty, featuring models with painted slants on their eyes. [3] Instances of outright racism, alongside evolving preferences, serve as a poignant reminder of the West’s tendency to oversimplify China as merely another international market.
Beyond Boundaries: Cartier and the Palace Museum Craftsmanship and Restoration Exhibition, 1 June – 31 July 2019. Photo Courtesy: The Hour Glass.
In the midst of this dynamic, China’s profound economic and political metamorphosis over the past 40 years has brought forth a generation born into a virtually different country. Defined by rejection of conventional milestones like marriage and parenthood, deep digitalisation, and a sense of Guochao; this young generation emerges as the architects of a new era of luxury in China. Post-’90s shoppers embrace new consumption mindsets: self-reward as motivation, a desire for experience, and a quest for artistic value.
For self-indulgent youth, the avant-garde decision is clear: local brands are the optimal choice to fulfill their commercial needs. The underlying reasons behind this proclivity are often disregarded, eclipsed by the portrayal of China as the world’s biggest factory rather than a lively cultural landscape. The preference also contrasts with the Western idea that “Made in China” carries a subpar reputation.
But failure is not inevitable. In the retail sphere, Western brands are resonating with Chinese patriots via meticulously crafted collections that authentically embrace tradition and history. Loewe’s Chinese New Year collection appeals to both traditionalists and unconventional luxury buyers. The brand partnered with three master jade carvers to design the pieces: Xiaojin Yin, Lei Cheng and Qijing Qiu. “I believe that jade itself is a quintessential part of our nation. Its constant presence throughout our history and cultural journey makes it not just a companion, but also a spiritual anchor for our people,” Cheng reveals. [4]
Loewe Jade Collection Pendants. Photo Courtesy: Jing Daily.
The collection demonstrates a tasteful approach to localization, unintended for Western audiences. The pendants, priced over $14,000 dollars apiece, received an overwhelmingly positive response online. Chinese social media platforms Weibo and Xiaohongshu praised Loewe, leading them to gain 600,000 followers on Weibo. The collection is now available at Casa Loewe concept stores in Shanghai, Beijing, and Chengdu.
Throughout 2022, Max Mara also tailored several campaigns to China’s young buyers. Initiatives from the timeless Italian brand included in-person pop ups, digital games, and engagement with Chinese platforms. A nod to their iconic Teddy Bear Coat, their cartoon IP “Teddy” has become an instant hit, establishing the “Max Mara Teddy Alpine” pop-up in eight Chinese cities. This installation aligned with their Alpine-inspired Fall 2022 runway show. The 2023 Resort campaign further localized to China by integrating elements of Qixi Festival (Chinese Valentine’s Day), such as giving away virtual red envelopes through an interactive online game. [5]
Key to both Loewe and Max Mara’s success is avoiding superficiality. They translate cultural awareness into intelligent strategy, recognizing that consumer preferences are intricately tied to cultural context. The true customer-centrism exemplified by these two brands is poised to redefine the paradigm of China as a monolithic landscape.
WeChat mini game for Fall 2022 Max Mara collection. Photo Courtesy: Jing Daily.
Yet Chinese holidays aren’t the only time when consumers care about cultural references. Despite being perpetually online, the post-’90s generation has not lost touch with art and culture. In fact, their steadfast Guochao is a testament to a growing concern for luxury products maintaining cultural value.
Consequently, artful collaborations are on the rise. Brands are merging with artists to create rarity and aesthetic value, qualities valued by young consumers. In 2022, the second edition of Art ‘N Dior was held in Shanghai. The event included the travelling exhibition “Lady Dior as Seen by,” featuring creative expressions of the iconic Lady Dior handbag by emerging artists, including Chinese natives Yang Mian, Zhang Ruyi, and the duo Yang Bao and Liu Wa. [6] Continuing the spirit of transformation, the show also previewed Wang Yuyang’s work for Lady Dior Art #7, the seventh rendition of Dior’s collaboration with contemporary artists to reinterpret the Lady Dior handbag. Wang, inspired by his most famous art piece “Artificial Moon,” expresses a meaningful connection to the brand: “When I worked with Dior this time, I thought about what kind of image is attractive to audiences, because I don’t want people to think that the bag is just a decorative or fashionable feeling. I hope that holding it represents an attitude or cognition toward the world — something we seem to be used to but may have other possibilities.” [7]
Wang recognizes the profound connection Chinese people have to the moon, symbolized through the Mid-Autumn festival and Chinese folklore. He complicates this relationship through his art, expressing "But when you know the truth of the moon, such as its dark surface, you feel that all your beautiful imagination has been broken.”
Wang Yuyang, Dior Lady Art #7. Photo Courtesy: Dior.
Harmonising surrealism and luxury, Dior models the art of forging local connections. The brand also demonstrates that authenticity (despite its buzzword status) is crucial for brands entering the art world. Just as Chinese consumers dismiss Western brands that superficially borrow some aspect of their culture without a meaningful connection; luxury consumers, often well-versed in fine arts, can promptly discern when a true connection to the artwork is absent.
Authentic collaborations are not limited to physical exhibitions. For instance, Cartier and the Palace Museum jointly released the short film “Revive the Memory of the Timepieces,” which detailed how Cartier and the museum shared a commitment to restore six ancient timepieces from the Palace Museum’s collection. “I hope to showcase the craftsmanship exemplified by watchmaking artisans from both the East and West as they revive the spirit and memory of these timepieces,” filmmaker Li Shaolong says. [8]
Revive the Memory of the Timepieces Documentary Poster. Photo Courtesy: Cartier.
The bottom line remains that China’s young consumers are leveraging consumption to access a sense of cultural belonging. However, as with any trend, the permanence of Guochao is not guaranteed. The prevailing mindset across this segment will evolve as society continues to ebb and flow.
For now, Western companies stand to benefit going beyond one image of a “Chinese consumer.” The youth’s national pride should not be misinterpreted as blind nationalism; the reality is a complex construction of identity that incorporates change and continuity. Continuing to ignore the human dimension of Chinese consumption, Western brands risk being swept away by the strongest current in luxury.
Footnotes
1. Mark Sweney and Jack Simpson, “China’s BYD Overtakes Tesla as Top-Selling Electric Car Seller,” The Guardian, January 2, 2024, https://www.theguardian.com/environment/2024/jan/02/chinas-byd-overtakes-tesla-as-top-selling-electric-car-seller.
2. Bruno Lannes and Weiwei Xing, “Setting a New Pace for Personal Luxury Growth in China,” Bain, February 7, 2023, https://www.bain.com/insights/setting-a-new-pace-for-personal-luxury-growth-in-china/.
3. Jiaqi Luo, “Brands Perpetuating Racial Stereotypes in China Face Growing Boycott Movement,” Campaign Asia, January 24, 2022, https://www.campaignasia.com/article/brands-perpetuating-racial-stereotypes-in-china-face-growing-boycott-movement/475359.
4. Denni Hu, “Loewe Taps Chinese Master Jade Carvers for Lunar New Year Collection,” WWD, January 5, 2024, https://wwd.com/fashion-news/designer-luxury/loewe-2024-lunar-new-year-collection-1236108454/.
5. Jing Daily, “Max Mara’s Business Strategy Delves into China’s Youth,” Jing Daily, November 27, 2022, https://jingdaily.com/posts/max-maras-business-strategy-chinas-youth-gen-z.
6. Tan Weiyun, “Dior Exhibition Celebrates Art Background of House Founder,” SHINE, November 11, 2023, https://www.shine.cn/feature/art-culture/2311110631/.
7. He Qi, “Journey into Creativity,” China Daily, November 19, 2022, https://www.chinadaily.com.cn/a/202211/19/WS63784356a31049175432ab6a.html.
8. Xu Wei, “New Documentary About Timepiece Preservation Debuts Today,” SHINE, January 8, 2018, https://www.shine.cn/feature/entertainment/1801088769/.
Lily Holmes
Luxury Editor, MADE IN BED