While the rich in the United States pour money into alcohol and food, the Chinese luxury consumers prefer to shop for designer clothes, jewelry, and cosmetics.
Despite the Covid-19 pandemic raging across all continents, luxury consumers in China and the US are still optimistic about their economic situation, according to a report by consulting firm Agility Research & Strategy.
About 82% of the rich in China surveyed believe that in the next 12 months, their financial well-being will remain the same or even grow. Meanwhile, 78% of rich people in the US share the same opinion.
However, the gap between the rich between the two countries becomes clearer when looking at the percentage of people who are confident that their wealth will increase: Up to 55% of Chinese agree but only 35% American.
Even their shopping habits show disparities. While 79% of Chinese said they maintain or increase luxury spending in the next 12 months, only 60% of Americans do.
The Covid-19 pandemic lasted longer in the US, leading to financial and health concerns in society, explained Amrita Banta, CEO of Agility Research & Strategy.
However, despite optimism about individual career prospects, both consumer groups expressed concern about their countries’ economies. In particular, rising tensions between the US and China have caused many effects, according to 93% of Chinese respondents.
Differences in spending money
The rich in the two countries also have something in common. They all cut spending on items such as spas, cruises, and some recreational activities. However, shopping habits are somewhat opposite.
Americans spend more money on experiential services such as dining, wine, and travel. Meanwhile, Chinese people prefer to spend on beauty and buy luxury goods such as jewelry, clothes, and accessories, Banta said.
In addition, the hobbies of the rich in China are golf, swimming, and yoga. Wealthy Americans choose to cook, read, and garden. In general, both of these consumer groups are moving towards a healthier lifestyle after being affected by Covid-19.
A healthy lifestyle has been a trend since before the pandemic. However, it was promoted in times of crisis on both continents. They follow the trend of health care including food, exercise, yoga and vacation trips, re-energizing, Banta shared.
A healthy lifestyle became the top priority for American respondents, and second for Chinese, after children’s education.
The female director also said that some fashion brands related to health and physical activity such as Lululemon, Nike, or Adidas are becoming more popular.
Despite the tremendous growth of e-commerce during the epidemic, for the two affluent consumer groups, the experience of buying luxury products at retail stores is still more attractive.
In addition, travel and shopping for the rich in China are closely linked. During the “golden week,” this group’s spending on domestic tourism and luxury goods increased sharply. Before the pandemic, they often spent on luxury goods when traveling abroad.
In most countries, high-value items are still often bought directly because the majority of customers want to experience the service in retail stores.
However, e-commerce also helps. This type of shopping helps customers in lower-tier cities in China – where there are no retail branches of luxury brands – to buy what they want.