Shanghai lady Lily Xue, 32, who works at a 4A advertising agency as a senior manager, has a seven-year history of using luxury products.
"Working in a more fashionable circle, you must dress up like others in the group. Otherwise, people will treat you differently. The initial purpose of buying luxury brands was for defining my status," Xue says.
"For the first several years, I tried more than 20 luxury brands. At the time, if the brand was stylish and luxurious, I would possibly buy it. Now, I only buy three or five brands that really suit me."
"Today the brands I buy are usually high-class but not that showy. So, people won't judge you on your accessories and bags but they still can feel you have a delicate and tasteful lifestyle," she says.
Welcome to the future luxury consumer in China - the power woman. When it comes to trends, cool and knowledgeable about fashion brands, women will increasingly move into the driver's seat.
The main buying philosophy for modern Chinese women can be summed up with the line, "I can't really afford it, but I deserve it".
This new breed of luxury consumers are young, 25 to 35 years old, with above-average income, yet they want more than they can afford - and unlike their parents, they are determined to have it. Over-stretched financially they have no qualms resorting to credit to buy big-ticket items.
Girl power is increasing all over China. And she is at ease with her multiple identities. BatesAsia China research on lower-tier "young influential" consumers bears testament to the fact.
"I don't wear colors too bright to work. Bright colors signify that I am not a serious person. So I prefer colors that are austere and reflect my professionalism," says Li Shen from Harbin. Yet these same ladies make a seamless transition from a conservative professional by day to a filially responsible daughter in the evening to a rocking chick at night.
The transformation is the result of not just increasing disposable income, but also increasing pressure. Luxury goods are also becoming the "rewards" of a much-younger and far-less affluent group. The more the women think that they deserve it, the less likely they are to associate with brands that have been devalued.
Li Feng, about 46 years old, is a successful businessman. He wears a big diamond ring and a Rolex watch.
"Sometimes it is important to have these kind of things, which will help your business partners believe that you have enough financial strength," he says.
Emperors before were clearly stating, "Look at me, I'm rich". Today, in most places, luxury brands are still clearly associated with wealth. However as the definition of success changes, so will the role of luxury brands.
Thirty-four-year-old Shanghainese Zhang Shengwei is the new face of successful China - the new master.
"I am the kind of person who pays attention to how I dress and the brands I buy," he smiles. "If I wear a T-shirt, surely won't wear leather shoes. And I like shopping as wellis it a bit strange for a man? I visit brand stores regularly but don't buy every time. I feel it is a way to enjoy life and I am interested in new styles and designs. I also like to read magazines that explain the deeper meaning behind brands. "
He wears Vacheron Constantin watch. "There is not only Omega or Rolex. Although most people regard them as the best, I won't buy them. I look for brands that are suitable for me."
New masters use luxury brands to signal discernment. It's high quality. It shows they have good taste. It shows they are well educated. New masters shy away from the old cliches of success. Mercedes or Audi A6 is clearly not for them. A BMW is their car of choice or for the really successful, self-made man it will be a Porche, please.
In the not too distant future luxury brands for the new masters will be a reflection of their discerning taste. Their heritage and deeper meaning will play an increasing motivation for brand adoption.
Power women will perhaps emerge as the single largest luxury consumer group, determined to reward themselves rather than waiting to be recipients. As these ladies become more knowledgeable about luxury brands, trying out new brands will inevitably decline. And there is bound to be a consolidation in the marketplace - as brands that are found to be wanting will fall by the wayside.
The article was contributed by BatesAsia China, Beijing Planning Team
