HOW TO TARGET HNWI (HIGH NET WORTH INDIVIDUALS) IN CHINA

by A Mac March 24, 2021

If you are looking to target HNWI (High Net Worth Individuals) in China, to sell your property, your financial services or luxury products…. This article is for you.

Focusing resources on the right people and places is a critical success factor in marketing.

For brands looking to develop their high-value market, reaching, and impressing high-value people in China (HNWI: High net worth individuals) should be an asset.

If you want to be competitive in this sector, pay attention to the rest of this article.

CHINA IS A GOLD MINE FOR HNWI
A SPECIFIC DIGITAL STRATEGY FOR CHINESE HNWI
HNWI INTERNET USAGE BEHAVIOR AND RELEVANT STRATEGIES

In China, the affluent population, that is, people with a net worth between $1 million and $30 million, is growing rapidly.

In October 2020, China officially became the world’s largest country in terms of the number of millionaires (in USD, unless otherwise indicated).

One year later, the number of adults in China with a net worth between US$100,000 and US$1 million was over 110 million.

Over the past decade, China has experienced triple-digit growth in its millionaire population in less than five years. As for the very wealthy Chinese (i.e., those with assets of $30 million or more), their numbers are expected to increase by 35% over the next few years.

Within the country, Shanghai, Beijing, and Shenzhen have the highest concentrations of affluent Chinese.

The pace of urbanization in the country is also unprecedented in the world. It has more than 100 cities with more than one million inhabitants and is home to 15 of the world’s 47 megacities.

That said, foreign brands and companies that don’t know the rules of the game will need proven intelligence and strategy to make the most of it,

Up-to-date information on the locations, motivations, buying behavior, priorities, and preferences of Chinese HNWIs in terms of high-end consumption is a prerequisite for successful marketing.

MARKETING FUNDS MUST BE SPENT ACCURATELY TO STAY AHEAD OF OTHERS.

A SPECIFIC DIGITAL STRATEGY

HNWIs are embracing technology with enthusiasm.
They use several digital devices and spend 5 or more hours a day online.
The Chinese HNWI population is diverse, including both entrepreneurs who opened factories decades ago, as well as young professionals from the technology sector and other emerging industries.
Unique to China, more than a quarter of the ultra-rich are under 50 years old, compared to a global average of 13%. Such a significantly lower average age implies a higher level of technological know-how.

Although the rich use technology like everyone else, they have different needs, expectations, and concerns than the general public.

For example, they may have more reservations when providing personal data online. They may also have a greater appetite for expertise and personalization.

Moreover, major platforms such as Google, Twitter, Facebook, and YouTube are not accessible in China.

Foreign advertisers need to employ tailored and highly segmented digital strategies that serve the single Chinese market.

HNWI INTERNET USE BEHAVIOR AND RELEVANT STRATEGIES

Since HNWIs have significant resources at their disposal, they are very digitally literate and are selective about the content and channels to which they devote time.

– 85% of them use more than 3 digital devices.

– 89% use information sites

– 60% of social media to get information

They also have high criteria for choosing what they read, emphasizing relevance, credibility, and value, and they share and actively interact with their social circles in high society. Therefore, search engine optimized homepages, social media articles, blog posts, editorial articles, and social media with the right content are effective ways to build brand awareness and tell stories.

It is essential to select the right media channels for advertising campaigns.

HNWIs value their time and want to get useful information in the most efficient way possible. They are critical thinkers who prefer to obtain credible information from selected first-class sources.

The luxury market in China is filled with remarkably high potential. Adapting a good strategy is the key to success.

You will need certain adaptability and reactivity to seduce the HNWI.