Luxury in the digital China Strategies for 'luxury and made in Italy' in the age of social commerce

This thesis investigates the evolving landscape of the Chinese luxury market and examines how luxury brands—particularly those rooted in Made in Italy excellence—can successfully position themselves within this complex and fast-growing environment. As China has emerged as one of the most influential luxury markets worldwide, understanding its unique dynamics has become essential for international brands seeking long-term relevance and competitive advantage. The research begins with a comprehensive examination of the global luxury sector, outlining economic significance and the shifts that have reshaped consumer behavior over the past decade. Special emphasis is placed on the rising importance of experiential luxury, the growing demand for craftsmanship and cultural authenticity, and the effects of digital transformation on brand–consumer interaction. Building on this foundation, the thesis then turns to the Chinese luxury market, offering an in-depth analysis of its distinctive characteristics. China’s rapid economic development, expanding middle class, and increasing purchasing power have created a uniquely dynamic environment for luxury brands. However, the market is far from homogeneous: generational differences, regional disparities, and evolving cultural values all contribute to a multifaceted consumer landscape. In particular, the thesis explores the role of Gen Z and young millennials, whose digital fluency, desire for self-expression, and appetite for novelty continue to reshape industry norms. Additionally, the study examines the market fluctuations of recent years, including the impacts of social, economic, and regulatory changes, and how they have influenced consumer purchasing behaviors. A portion of the research focuses on China’s distinctive digital ecosystem, which differs significantly from Western models. Platforms such as WeChat, Weibo, Xiaohongshu and Douyin are not just marketing channels but essential components of the consumer journey. The thesis analyzes how these platforms function, the role of KOLs (Key Opinion Leaders) and the importance of social commerce, livestreaming, and community-based engagement. This section highlights how digital innovation has become a crucial factor for success, requiring brands to adopt localized, culturally appropriate communication strategies. The final part of the thesis turns to the Made in Italy value proposition, identifying the strengths and challenges Italian brands face when entering the Chinese market. Italian craftsmanship, heritage, and design excellence are highly regarded by Chinese consumers, yet effective market entry requires more than product quality alone. The study therefore provides strategic recommendations for Italian luxury brands, focusing on brand positioning, storytelling, partnerships, digital integration, and long-term cultural engagement. These insights aim to support brands in navigating the complexities of the Chinese market while maintaining the authenticity and heritage that define Made in Italy.