The world of fashion restarts from Asia and digital natives
Attracting the attention and preference of Asian consumers is the new imperative and connected products are the best way to facilitate communication between brands and consumers.
According to the “True-Luxury Global Consumer Insight” study conducted by the Boston Consulting Group (BCG) on behalf of Altagamma, by 2025 the Millennial and Generation Z will represent over 60% of the global luxury market. The geographical area that will drive this growth is without doubt Asia, led by China.
The data collected by our platform in over 180 countries, through half a billion products equipped with Certilogo smart tags, helps us to take a more detailed look at the analysis of Asian consumers and, in particular, the targets highlighted as having the highest potential for the growth of the sector.
The number of connections recorded highlights the strong growth in Asia, which in 2018 accounted for 31% of total connections, whereas in 2021 it represented 40%. This growth, amounting to 30% in just 3 years, confirms forecasts that the Asian continent is destined to represent 50% of the global Fashion and Luxury market by 2025.
A new must: speaking the language of Generation Z
Our data, which is collected through consumer digital connections using physical fashion and luxury products, clearly demonstrates that Generation Z is driving growth, peaking in the 21-25 age group of Chinese consumers which reaches 40%.
Korea, whose connections are driven by the tremendous success of streetwear brands in that geographical area, sees a greater representation of the younger segment of Generation Z: 1 in 5 connections from Korea are from users between the ages of 16 and 20.
These profiles, which by definition are digital natives and highly skilled trendsetters, capable of creating engagement and making things go viral with minimal effort, represent a strategic target that brands need to engage and pamper.
Of the young Asian consumers, the Chinese are the "explorers", the most inclined to communicate with all brands
Interviewed in reference to the relationship with the brand to which they have connected, the Koreans and the Japanese mainly interact with their favourite brands (more than 8 out of 10), while the Chinese, on the contrary, are much more "explorers" and willing to communicate with a wider bouquet of brands, even those they know or use little (more than 1 out of 2).
What services should be offered through connected products?
Unsurprisingly, Chinese consumers are the most obsessed with authenticity (more than 1 out of 2 users place the certificate of authenticity first in their list of desired services), while Koreans and Japanese are more interested in brands suggesting other garments that match the product purchased (4 out of 10).
What clearly emerges from the "True-Luxury Global Consumer Insight" study and from our data is that Fashion and Luxury strategies cannot fail to take into consideration younger consumers, who are digital natives and "always connected", as an essential target audience that drives sales. They represent consumers who expect a direct relationship with the brand, regardless of where or when they make purchases. In this context, connected products become an immediate, direct and easily activated communication channel, ideal for establishing engaging communication, especially with the younger generations and in the Asian markets.
Get in touch with us to find out how easy it is to transform your physical products into connected products, or how to inject new energy into an underperforming smart tagging project.