- The luxury hospitality industry in China is experiencing a significant boom, fuelled by the increasing demand for unique and immersive experiences.
- A recent survey suggests that high net-worth individuals (HNWIs) prefer direct engagement when shopping in stores.
- By creating a personalised and immersive shopping environment, brands can encourage longer in-store stays and ultimately drive luxury goods sales.
China's luxury hospitality industry is booming, with a surge in the number of exclusive luxury cafés opening in prime shopping mall locations aimed at attracting a new generation of discerning young shoppers worldwide.
According to a recent survey from Euromonitor, the luxury hospitality industry’s growth story in 2024 will be driven by “small indulgences” or “delightful distractions” when working to attract younger customers.
The survey, which gathered responses from approximately 40,600 HNWIs, noted that direct brand engagement is the best way to drive younger wealthy customers into high-end shops.
The data suggested that hospitality-focused emotional marketing also aided consumer retention, revealing that 55% of shoppers reported they were more inclined to buy from brands that offered engaging experiences.
This includes luxury brands venturing into the food and beverage scene, such as Tiffany & Co.’s café and Prada’s dining ventures.
Dior is the latest luxury powerhouse to join the trend, offering logo-ed lattes and Instagram-worthy treats at its café in Shanghai. With its alfresco dining area and prime location, the café is set to attract both local and international visitors.
In December 2022, Dior set up a two-month-long pop-up shop and café at Lake Songhua Resort in Jinlin province, attracting avid skiers with unique offerings such as butterfly-shaped waffles.
Similarly, Maison Margiela opened its first café at Sino-Ocean Taikoo Li Chengdu, followed by another location at Shanghai’s JC Plaza, where shoppers lined up for the famous Tabi-shaped white chocolate cake.
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As top brands such as Rimowa, Prada and Louis Vuitton test the waters by offering unique café experiences to their customers, these luxurious pop-up cafés provide visitors with the brands’ signature products as well as a glimpse into their world through carefully curated designs and delectable treats.
From Pradasphere Caffè’s velvet and marble interior serving Italian snacks to Rimowa’s itinerant exhibition offering speciality in-flight meals, these immersive experiences are captivating HNWIs in the luxury hospitality market.
Louis Vuitton also consulted with the parent company of Da Vittorio Shanghai, a Michelin-starred restaurant, while Prada even flew in chefs and managers from its hospitality ventures in Milan and London.
While some brands use this approach as a value-added service or to target specific customer segments, luxury players such as Hermès and Chanel reserve these catering services for their top clients.
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