02_singapore_2025_WEDNESDAY_ISSUE

C harlie Gu, Founder & CEO, Jingzhi Media Group, is a recognised expert in cross-cultural marketing and Chinese consumer behaviour, championing China’s rich culture of craftsmanship and innovation. He shared some compelling insights into how China’s consumers are writing a new script for travel retail. “Today’s Chinese travellers crave meaning over material,” Gu explained. “The boom in the travel sector will be driven by two powerful forces: Gen Z and the often-overlooked Silver Generation, combining wealth, wisdom, and wanderlust. Make no mistake: China has entered a neo-luxury era, where true refinement is measured not by price tags, but by cultural resonance and personal enrichment.” China’s consumer landscape is evolving in terms of generational shifts, digital acceleration, and changing consumer priorities. “The Silver Generation – China’s affluent, time-rich boomers – is fast emerging as an unexpected powerhouse behind travel growth,” said Gu. “Across all generations, time well spent has become the ultimate luxury. Family moments are the new status symbols. And with AI reshaping personalisation, brands must deliver experiences that feel curated, thoughtful, and deeply human.” Gu shared that, today, offline retail must perform like theatre – delivering surprises and delights that digital shopping cannot replicate. “Brands must craft immersive experiences – at home, on the road, and even in transit lounges. Storytelling is non-negotiable: Chinese consumers invest in brands that offer meaning, identity, and values beyond the product. And cultural fluency isn’t optional – it’s a competitive advantage. Brands that truly understand and respect Chinese culture will outshine those who merely translate.” The nuances of China’s diverse traveller base mean brands and retailers must appeal to different generations. “Gen Z demands localised, culturally authentic experiences – generic luxury simply won’t cut it,” said Gu. “Millennials prioritise speed and value – for them, convenience is the ultimate luxury. Gen X values education – they want to understand a product’s heritage and craftsmanship before they buy.” Meanwhile, experience is no longer a ‘nice-to-have’ – indeed, according to Gu, it’s the ticket to compete. “If you rely solely on pricing, you’re entering a race to the bottom. True luxury today is defined by cultural richness, personal resonance, and storytelling. Brands that stay true to their unique DNA and celebrate their authenticity will build loyal followings. Those who understand this new dynamic will thrive; those who always chase what’s ‘popular’ will fade.” D r Tina Zhou, Co-founder and CEO of Yaok Group and Dean of Yaok Institute, shared some fascinating insights into the ways China’s consumer landscape is evolving in terms of generational shifts, digital acceleration, and changing consumer priorities. “China has completely entered a stage of consumer polarisation, and high-end consumption will become the main source of profit for many industries,” Zhou explained. “By 2024, 4.46 million Chinese billionaires, who account for only 0.3% of the population, contribute 28% of the total social consumption and 75% of the profits of consumer enterprises. The luxury goods market in China has transformed from an incremental market to a stock market, and the growth momentum has shifted from the consumption upgrade of mass consumers to the necessity of high-end consumers’ lives. How to serve high-end customers well has become a strategic focus for all luxury brands.” Zhou further highlighted that the Chinese duty free market is entering a stage of diversified development, transitioning from port duty free and offshore duty free to city duty free. The Chinese city duty free market is expected to experience significant growth. YAOK Institute predicts that 2025 will still be a difficult year for the luxury goods industry. “Although the global luxury goods market is expected to maintain single-digit growth driven by consumption upgrades, with an estimated growth rate of around 3%, several leading luxury goods groups may experience negative growth for the first time,” said Zhou. “New categories and brands will become the main source of sales growth for the global luxury goods industry.” So, how can brands and retailers capture the attention and loyalty of the Chinese consumer? “Shift your mindset from selling products to selling services, frommanaging products to becoming a business operator, and reconstruct your business model based on the mindset of the operator,” Zhou explained. “Emphasise digitalisation and utilise it to improve operational efficiency and customer experience. Strive to pursue a high-end development strategy, enhance brand image, and provide customers with more non-product value. Finally, strive to provide customers with more localised services, close to consumers, and convenient for consumers.” Charlie Gu, Founder & CEO, Jingzhi Media Group: “Make no mistake: China has entered a neo-luxury era, where true refinement is measured not by price tags, but by cultural resonance and personal enrichment.” Dr Tina Zhou, Co-founder and CEO of Yaok Group and Dean of Yaok Institute: “Although the global luxury goods market is expected to maintain single-digit growth driven by consumption upgrades, with an estimated growth rate of around 3%, several leading luxury goods groups may experience negative growth for the first time.” “China has entered a neo- luxury era” Entering a stage of diversified development Wednesday 14 May 2025 5 T F W A D A I L Y