Asian millennials are the fastest growing luxury consumer segment on the planet. But to capture this market, companies will need to ensure that they understand what makes each Asian region different from the next. Avoiding generalisation is essential; each Asian country represents its own unique set of sales and marketing challenges.
Li Xing is the Publisher and Chief Editor of Robb Report China. She tells us what the new Quality Life Report 2016* will reveal about millennial travellers from China and beyond.
Travel inspiration for millennials in China comes from various sources. Magazines are still the main channel for ultra-high-net-wealth individuals, with 67% of respondents obtaining information about luxury brands and products through magazines, whilst WeChat has become the imperative social platform for millennial travel inspiration.
The biggest travel trend for Chinese millennials is investing in resort properties. According to the research data in 2016, 43% of respondents would like to buy properties, among which, 63% are willing to invest over 1 million US dollars.
Chinese millennials differ from other millennials in Asia as family travel is a key motivator. Leisure family travel (78%) is the main purpose of their overseas trips, followed by business (49%) and individual leisure (44%). 78% of respondents had arranged family travel in the past year. Unlike western millennials, 38% of respondents travel abroad to broaden their horizons and life experience; 22% for education. Overseas travel is becoming an important approach to enrich their spiritual life.
The one defining trait of the young, affluent class in China is the desire to seek out niche brands and spend money on their specific interests, such as fashion and art. Research in 2016 showed that 83% of respondents under the age of 30 prefer more low-key products in terms of luxury consumption.
Engagement and marketing are the most important methods to develop relationships with Chinese HNWIs. Chinese Millennials are more social. 69% of respondents believe “making friends and networking are important and helpful for their career development”.
Chinese millennials will travel to Northern Europe and Northern America in the next 12 months; however, this trend has been affected by some international visa policies. Popular modes of travel include first-class cruise (61%), followed by luxury train (50%) and chartered super yacht (28%). Polar adventure (24%) and safari (23%) are also increasing in popularity although it should be noted that 22% of respondents travelled by corporate aircrafts and private aircrafts, such figures have been increasing year on year. Chartering corporate aircrafts for overseas travel has already been established in China and is now becoming a popular way of travel among HNWIs in Hong Kong. The concept of fly-in resorts may become a highlight in future.
The Robb Report is a regular attendee of ILTM Asia, which takes places in Shanghai, June 5th – 8th. Find out more about the show.