High net worth individuals’ shopping habits
On 13th July 2017, Chinese luxury consumer authority, The Hurun Research Institute, and media outlet, MEC, published its Hurun Report on gifting behaviour.
The production and release of the White Paper aims to “help readers understand more about gifting in China, particularly for modern HNWIs, and help businesses find potential opportunities to grow”, The Hurun Research Institute enthused in a recent press release.
Together, The Hurun Research Institute and MEC teamed up over the six-month period between December 2016 and May 2017 to research and complete the 'China HNWI Gifting White Paper’.
“This is the first in-depth analysis of gifting behaviour of high net worth people in China,” outlined Rupert Hoogewerf, Chairman and Chief Researcher of Hurun Report.
“I hope the results we found will not only make the gifting decision easier for HNWI gifters in China but also provide valuable insights to brands on brand positioning and product adjustment,” Hoogewerf added.
As part of its research, the duo asked 507 of China's most successful HNWIs questions relating to their gifting experiences. The surveys were carried out in 14 cities in mainland China. The average age of the respondents was 41 years old. The HNWIs’ wealth amounted to 22 mn RMB (€2.8 mn) per capita, with a yearly disposable income of 4.17 mn RMB (€537,000).
In addition, 16 wealthy individuals were also interviewed by research teams based in Shanghai, Beijing, Guangzhou and Xi'an.
With annual festivals ever popular throughout the year in China, brands launch a considerable number of seasonal and relevant marketing campaigns. To accompany these, gifting concepts have become the norm, with products and services packaged to incentivise.
The Hurun Report outlines how brands need to be sophisticated in their approach to devising new gifting schemes, as these typically must consider the gifting occasion; gifting motivations such as “filial piety, expressing love and care, creating surprises and special memories, or sending blessings”; the emotional requirements of the consumers; and the variety of giftees’ roles.
Names in the beauty, cosmetics and personal care world, must, therefore, strategise their marketing activities carefully to incorporate themed promotions and provide new information that appeals to both consumers and brands to warrant investing in gifts.
The second part of this article detailing the main findings will be published on Wednesday 19th July 2017.