Consumer Segment and Target Consumers of Burberry in China

Consumer segment and target consumers for your Burberry in China
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A specification of the consumer segment and target consumers for your Burberry in china, brand or product (defined and analysed by demographic, behavioural, and psychographic tools)
Consumer Segment and Target Consumers
Background
Burberry Group, the British luxury fashion house designs, develops, manufactures, distributes, and markets luxury goods, including clothing, fashion accessories, and licensing fragrances (David, 2020). In China, the company’s tartan pattern is one of the most copied trademarks, and sales are rising faster in China than in other regions (David, 2020). Market segmentation provides insights on marketing to the target group. The target consumer group for Burberry in China is the young consumers or “Generation X”, and they are analysed focusing on the demographic, behavioural, and psychographic profiles.
Demographics
Generation X consumers are the luxury brand's target consumer group, but mostly female consumers conscious of luxury brands. Children from middle and wealthy households are the target group in China, and these consumers are less sensitive to prices. According to McKinsey & Company (2020, p.2), the rising upper-middle-class will account for the biggest growth in luxury spending in the coming decade. The luxury-brand-oriented consumers are more likely to live in big cities such as Beijing and Shanghai, where it is easy to access luxury brands through retail shops, and there is delivery after online sales. Law (2021) reports that lower tourist traffic and trading restrictions affected Burberry’s growth negatively. Still, the brand is increasingly focused on young consumers in China, one of the fast-growing market segments. While Generation Y in the post 80s period is the primary consumers of luxury goods, there is greater positional among younger consumers (David, 2020).
There has been a gradual increase in rural-urban migration, with urban areas now having a large consumer base who can afford luxury products such as Burberry. Increasingly, Chinese consumers in their 20s are becoming a significant market segment for luxury products, and the consumer market is more self-indulgent than older generations (Ng, 2017, p. 168). Furthermore, the generation grew up in an era where the one-child policy was already in place, and China has grown into an economic powerhouse.
Behavioural
The target consumer group has positive attitudes towards the brand associated with luxury, quality, and uniqueness. They are also brand conscious and rely on information from different sources to make purchasing decisions. Young consumers significantly rely on Chinese e-commerce platforms than the brands’ online stores as there are more product choices, more information, different product presentations, tailored promotional activities, peer ratings, and various payment methods (Ng, 2017, p. 172). Since consumers listen and rely on ot...