Why are Chinese foreign students spending their parents’ money on London’s luxury brands?
Well-heeled Chinese foreign students want to appear affluent and well-travelled, and London’s luxury brands know how to deliver
This article was originally written by Tamsin Smith for Jing Daily
As brands continue to target Chinese luxury consumers around the world, one segment that has been overlooked is Chinese foreign students. In comparison to their peers from Europe and North America, Chinese overseas students are increasingly wealthy – and keener than ever to spend their (parents’) cash.
Last week in London, the digital marketing agency Emerging Communications and global payment company Adyen hosted an inbound Chinese marketing master class for luxury brands. Chinese students now account for over 40 per cent of all international students to the United Kingdom, according to Boston Consulting Group. It revealed at the event that the UK has surpassed the US as the favourite overseas study destination for Chinese youngsters.
This influx of Chinese students could mean big business for London’s luxury brands. So what do Chinese students want from brands? The answer lies in personal branding. Based on research by Emerging Communications, for Chinese overseas students, it’s all about them. “Chinese consumers want to know what your brand can do for them, and what wearing your brand will say about them to their friends and peers”, said Marie Tulloch, senior client services manager at Emerging Communications. “Chinese students want quality, they want unique experiences, but most of all they want to appear affluent and well-travelled to others.”
A common mistake brands make in dealing with this lucrative segment is assuming that they can be targeted through standard UK channels, and treated as any other group of young students. The event revealed that young Chinese consumers rarely switch social media channels within the first four years of living abroad, with wealthy students remaining loyal to WeChat and Weibo. This will have to change if they want to reach them on their terms.
It would be lucrative for British brands to tap into wealthy Chinese students whose spending power is incomparable to many of their Western counterparts. As of 2018, Chinese young high-net-worth individuals had an average wealth of US$5.6 million. Last year alone, prosperous Chinese parents spent over US$2.5 billion on London property for their little darlings. With more of these students set to descend on the British capital each year, luxury brands would do well to take note.
5 Takeaways: What should brands be doing to reach Chinese foreign students?
1. Personal branding
2. Quality
The Chinese student market doesn’t want cheap and cheerful – they want quality and are willing to pay for it. Brands need to take note of this and create sustainable, long-standing products.
3. Solutions to overseas student life
