A retail expert told BI there are 5 luxury items Chinese Gen Zers love, and it looks like the quiet luxury trend is going strong.
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Luxury brands may be having trouble making further inroads into China, but there are still some top items that Chinese Gen Zers are into.
Antonello Germano, a Chinese consumer insights manager at Daxue Consulting, gave BI his list of the top products China's Gen Z is currently into.
Here are his top picks.
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Germano picked out the hottest items by analyzing sales figures on the Chinese e-commerce site Tmall, trends on the Chinese social media platform Xiaohongshu, and online retailer Dewu.
He focused on the handbag category because it "always accounts for a big chunk of luxury sales in China," and shoes because it is a "rising segment."
He said there is a shift toward "discreet luxury," a growing distaste of flashy logos, and a liking for secondhand luxury items.
The Gucci GG Marmont bag collection, released in 2016, features small-to-medium-sized handbags priced from $980 to $3,980.
The line puts Gucci's distinct "GG" emblem front and center, making it instantly recognizable. Germano said Chinese Gen Zers are interested in "brand values, culture, history, and unique design."
"They favor trendy or 'hot' brands, are more likely to opt for niche brands, and show interest in vintage or secondhand luxury items," Germano said.
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The Gucci Horsebit 1955 line, which ranges from about $1,200 to $4,300, doesn't have the "GG" emblem and is more subtle design-wise.
That makes sense because, per Germano, Gen Z Chinese buyers are less logo-orientated than their parents' generations.
"They go beyond the physical attributes of luxury items, seeking recognition from their peers, staying on-trend, and expressing their values," Germano said.
He added that, in contrast, "millennials and Gen X prioritize the tangible features of luxury goods, such as brand name, heritage, and product quality."
These older Chinese consumers gravitate to "recognizable major brands," he added.
Germano said the Horsebit 1955 and GG Marmont collections are "some of Gucci's most iconic lines."
"I am not surprised they are so popular in China, especially now that consumers favor timeless and value-retaining luxury goods," he said.
Saint Laurent
Germano's third pick was the Saint Laurent Niki Medium bag, which retails for $3,150. The simple, sleek bag with metal chains is from the French luxury house Saint Laurent.
Germano said that while Chinese brands are on the rise, international brands like Saint Laurent still have a chokehold on the luxury market in China.
Saint Laurent and Gucci's bags are "considered safe options" for Chinese consumers, per Germano.
"Local brands do not enjoy the same perceived quality and prestige as their Western counterparts," he said.
Yves Saint Laurent
The Saint Laurent Le 5 à 7 Hobo handbag, which retails from $1,750 to $5,100, is another one of Germano's picks.
The structure of the bags in this line ranges from a more rectangular style to a slouchy and tote-like form in its "supple" variation.
The bags all feature a simple Saint Laurent logo and single shoulder straps, evoking the quiet luxury trend that has been popular in China for at least a year.
The "laoqianfeng" trend is the Chinese equivalent of the old-money aesthetic in the West. It is characterized by simple, high-quality clothing and accessories while avoiding logo mania.
Germano said that the shift toward quiet luxury was largely due to the economic downturn in China, which has reduced the number of aspirational middle-class luxury consumers who gravitate toward bold, obvious logos.
"As Gen Z resumes spending on luxury items and the middle class in non-tier-1 cities grows, there may be a resurgence of bolder logos."
However, it is unlikely that that will happen anytime soon, with China's economy only growing by 4.7% in the second quarter of 2024 and missing analysts' 5.1% growth forecast.
Weak consumption is the main cause of the slowdown, with retail sales expanding just 2% in June from a year ago, according to Bloomberg.
International luxury names like Burberry, Hugo Boss, and Swatch have reported low sales in the latest quarter.
Burberry's sales in mainland China fell 21% year-over-year in the most recent quarter. At the same time, Hugo Boss said in its preliminary Q2 financial reports on July 15 that key markets like China and the UK were "particularly challenging."
And Bernard Arnault's LVMH, the parent company of Louis Vuitton, Dior, and Givenchy, saw its second-quarter sales drop by 14% year over year, excluding Japan.
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Maison Margiela's Replica sneakers are trendy among Chinese Gen Z-ers, Germano said. They retail from $670 to $750.
"In the luxury shoe category, which is particularly popular among younger consumers, Balenciaga 3XL shoes have lost momentum over the past two to three months, while Margiela Replica sneakers are gaining the top position," he said.
Like the understated Saint Laurent Le 5 à 7 Hobo, Maison Margiela's Replica sneakers are simple and discreet enough for everyday use.
"Maison Margiela Replica sneakers became a hit mainly because celebrities and influencers love them," he said.
They are also popular because they "align with popular Chinese fashion trends like clean fit, minimalism, and the old money style," he added.
