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The Chinese luxury market confuses international media

After the Christmas holidays, there is a tendency for the media to look at the performance of retailers and find reasons for yet more trouble in the industry. In the past week, a number of international papers have included articles about China and luxury, and that the new President, Mr Xi wants to get his government officials more in touch with the people and how this will be detrimental for ...


Italian and French brands benefit from a long-term strategy in China

If you ask a Chinese consumer where luxury products come from they will always say France and Italy. As one of the ‘P’s’ in marketing place has always been important, and in China international places are no less important. Both the French and Italian luxury sectors and their governments have spent many years establishing this image in the minds of the Chinese consumer, and in recent years it has paid ...


Middle class Chinese men; the darlings of 2013?

Men in China have always been the main source of revenue within the luxury sector here, whether they are buying for themselves, purchasing gifts for business associates, or using their credit cards to buy for the women in their lives. Chinese men have also been keen to take care of themselves, and this trend appears to be a growing. One only needs to watch men of all ages, but particularly ...


Balancing market expansion and brand perception in China

The recent poor results from Burberry were blamed fair and square on China and a slowing economy, and although brands like LV have avoided commenting on the subject of a slow down and the potential affect on their business, others show signs of following suit. By contrast, other brands such as Hermes saw its performance increase by 28% in China and appeared not to be worried. Their biggest fear is ...


Increased consumer knowledge, a challenge of adaptation for luxury brands

It doesn’t take long for the Chinese to learn something new; it’s part of their cultural DNA. Their exposure to luxury has been a relative short one, which started as a need to show that they had money, and now manifests itself in an expectation of much better service and general treatment by luxury brands. Naturally, luxury has been in tier one cities the longest so the change has started here, ...


Are luxury products made in China a negative to the Chinese consumer?

This is a question that is often asked and commented upon by many like me in the industry here. It’s a natural question that is driven by the fact that we all consider at least from a distance that luxury goods must be made in the home country of the brand to be real and not fake ‘knock offs’. We also make the assumption because Chinese consumers will go out ...