PARIS, France — Chinese shoppers are undergoing a shift to valuing experiences along with product ownership, according to Ravi Thakran, LVMH’s group chairman for south and southeast Asia, Australia and the Middle East.
Chinese people aren’t just interested in buying wine, “but visiting a chateau, not just buying Louis Vuitton but going to the factory where they can see how it’s made,” Thakran said in an interview at a New York Times luxury conference in Hong Kong. The shift mirrors a trend in Europe and the US, where consumers are increasingly interested in spending on entertainment and in the provenance of the goods they buy.
The younger the customer, the greater the interest in shopping experiences, according to Thakran. Luxury brands need to incorporate adventures and encounters into their offerings to lure the Generation Z who are known for their fickle nature when it comes to product lines.
Thakran also sees China continuing as one the biggest markets for luxury brands, despite an ongoing trade war with the US and a crackdown on tourists returning to the country with luxury items that exceed duty-free allowances.
By Jinshan Hong; editors: Young-Sam Cho, John Lauerman, Eric Pfanner.