‘CHANGES IN WEALTH INDUSTRY UNDER WAY’
China’s young and tech-savvy are transforming Asia’s asset management and luxury spending markets as digitisation takes hold, forum told
China’s young, tech-savvy, ultra-rich cohort is shaping the wealth management and luxury spending industries, including art collection, according to experts at a conference in Hong Kong.
“The asset management landscape in Asia is undergoing significant transformations due to changing demographics and digitisation,” said Ding Chen, chief executive of CSOP Asset Management.
Speaking on a panel at the HSBC Global Investment Summit on Wednesday, Ding added the wealth management industry was being reshaped by social media, youth and key opinion leaders (KOLs), a term used for influential online content creators.
“For the next few decades, Gen Z or even the next Gen Alpha, their investment may be through asset tokenisation and AI [artificial intelligence] wealth advisers,” she said, adding the industry was working towards transforming wealth into “a new virtual format in addition to the traditional finance space”.
The mainland is projected to see a 47 per cent jump in the number of ultra-high-net-worth individuals by 2028 despite the global slowdown in wealth growth, according to a report by Knight Frank.
The country’s high-net-worth population is also becoming younger, with the proportion under 40 years old rising from 29 per cent in 2019 to 49 per cent last year, according to a separate report by China Merchant Bank.
Meanwhile, tech-savvy art enthusiasts and digital technology have transformed the art market, making it more accessible and inclusive for collectors, according to Francis Belin, president of Christie’s Asia-Pacific, who spoke on the same panel.
Despite an overall global slowdown in art purchases, the industry remained resilient, thanks to a shift towards younger collectors, Belin said.
“Asian buying has been robust and sustained across our art and luxury sales globally, with the region’s powerful younger buyer demographic becoming ever more prevalent,” he added.
Realistic pricing strategies, digital innovations and dynamic educational experiences would remain the key to cultivating art collectors in Asia across generations, Belin said.
Christie’s has also observed a growing significance of both new and younger consumers from Asia in its sales around the world, thanks in part to the auction house’s digital investments, including its online bidding and sales platforms.
Last year, Asia-Pacific accounted for 54 per cent of Christie’s global new buyer spending and 66 per cent of its global millennial buyer spending, with more than half attributed to the mainland.
The pandemic has shifted the focus of mainland consumers towards quality, craftsmanship and resale value over brand name, according to Zhang Jing, global editor-in-chief of luxury-sector business publication Jing Daily.
“Especially for women collectors, we are seeing an appreciation of intrinsic value and focus on curating a collection that is timeless,” Zhang said.
Traditional fashion and beauty brands are also understanding the influence of KOLs and celebrity marketing.
Zhang cited the example of Blackpink’s Lalisa Manobal (stage name Lisa), who acts as a brand ambassador for Chanel. Her association with the brand has brought in new, younger consumers.