Back to School Means Big Business
Jing Daily believes that “sending a child abroad to study is considered the ultimate luxury purchase.”
According to the Hurun Report, “85% of Chinese high net worth individuals and 90% of ultra high net worth individuals plan to send their children abroad for their education. The U.S. is the top destination (27%), followed by the UK (22%) and Canada (15%).”
Importantly, spending on overseas education also generates increased investment in travel, real estate and luxury goods. One of my clients, a French luxury goods company, realized that its promotions were better targeted to reaching affluent Chinese students at my alma matter, Harvard Business School, than investing in Chinese New Year celebrations.
This was because their friends and family networks anointed it as the authority on overseas lifestyles. As a result, it exerted significant influence on luxury purchases. According to Jing Daily, “74% [of overseas Chinese students] are asked for their advice on luxury purchases by friends and family at least once a quarter.”
Importantly, overseas Chinese students are buyers. According to China Luxury Advisors, “96% of students surveyed said that they purchased luxury goods to take home at least once a year. But here’s the kicker: among this influential group, only 25% have been contacted by luxury brands during their stay overseas.”
Lesson Learned: Cultivate overseas Chinese students as your consumer as they will likely have as much influence on luxury purchases as a posse of 50-something Chinese executives.