(Yicai Global) Dec. 12 -- The global luxury goods market grew 3.32 percent last year, with sales in China contributing 21 percent of the total to become the second-largest market behind the US.
Chinese people mainly buy luxury goods in brick-and-mortar stores overseas, according to a white paper published by Asia's biggest quality lifestyle platform Secoo Holding Ltd. [NASDAQ:SECO], Tencent Holdings Ltd. [HKG:0700] and Deloitte Touche Tohmatsu Ltd.
However, with the development of the internet, online channels now have ample room for growth. Last year, online luxury sales rose 12 percent in China, while the offline market grew just 2 percent, the paper said.
Online transactions made up just 8 percent of total luxury sales this year, though the report projects this may increase to 9 percent next year and climb as high as 13 percent by the end of 2021. The white paper shows that 50 percent of online luxury goods consumers are aged 25 to 35, 30 percent are aged 25 to 30, 15 percent are aged 18 to 24.
The proportion of the 18-to-30 age group is still increasing, suggesting online consumers of high-end goods are becoming even younger
Those born between 1985 and 1995 have become major buyers in China's online market.
The report also analyzed online consumers by region. Beijing, Guangdong and Sichuan were the top three locations for luxury goods buyers, making up 22 percent of the total. Beijing had the largest number, contributing 10 percent of the total, followed by Guangdong (9 percent) and Sichuan (8.8 percent). Shanghai, often seen as being the home of luxury shopping in China, chipped in 8.5 percent.
Chinese shoppers are buying more niche brand products rather than well-known labels as they look to seek a less mainstream experience, the paper said. For example, more and more young people are starting to embrace Supreme and Vetements.