Young customers driving future demand of luxury goods

Chinese customers are expected to contribute to 40 percent of global luxury goods sales and drive 75 percent growth of the global market by 2024, according to a report jointly released by Boston Consulting Group and Tencent on Wednesday.

Currently, 32 percent of global luxury goods sales are created by Chinese customers, the report said.

The report pointed out China's millennials will become main force to buy luxury goods.

Young people aged 18 to 30 will account for 58 percent of luxury goods buyers, and most of these young buyers have a good educational background with an undergraduate degree or above. Female buyers account for 71 percent of this group.

Over 50 percent of Chinese customers live in second- and third-tier or lower cites, and these customers are deeply influenced by digitization. These consumers spend a long time seeking information via smartphone.

The luxury goods consumption path is fragmented, with high digitization. Millennials have various methods to find luxury goods they like, including online searches, shopping, payment, delivery and customer service.

As the trends develop, luxury brands' quest to attract buyers will quickly move from offline to on. Within five years, the luxury industry will enter into a digital 2.0 era where the online and offline connect closely, said Wang Jiaqian, partner at Boston Consulting Group.