03
Oct
2013

Chinese luxury sector thought leadership, a rare commodity

In a market like China, there are many people vying to be seen as a valuable source of market information to those outside of the country, and one only has to do a simple search to see the number of websites offering assistance to those wanting to enter the luxury market here; it must be confusing to those looking.

What always interests me is that when I read some sort of article or piece in the media about a particular matter related to the luxury sector in China, 99% of the time it’s a subject we wrote about or expressed an opinion on three or more months previously. Now, I don’t think we are necessarily psychic, or the other guys are incredibly slow because I have thought about this for some time. What I do think is that because we are actually looking closely at what the market is doing day in, day out and not just re-jigging previously quoted information, and we really do have our finger on the pulse of this incredibly different market.

Predicting what will happen in the luxury sector here is not a simple or easy task, just ask those working for the big luxury groups or brands, but I do see why it’s an issue for them. Most of those tasked with analysing the market, are based outside of the market, and do not see the small nuances that can take affect often and without any real warning. The executives running the brands here are only focusing on the numbers, because this is the KPI they are measured against, so things for them are heavily skewed towards operations and not predicting the future.

Our independence and closeness to the real changes in the market, make us thought leaders and allow us to make well informed judgements of how things will go, in addition to painting an accurate picture of the overall market. Of course nobody is perfect, and we would not make claims to be so, but we really do know what is going on, and if we are asked a question we aren’t completely sure about, we can find a way to verify the information quickly.

Over the next few years, as the luxury market in China moves into new and uncharted waters, as it undoubtedly will, thought leaders like us will become more important to any business investing in the Chinese luxury sector. Luxury brands cannot necessarily afford additional headcount to constantly monitor market changes, so they will try to do this from a distance. We know, as do many others, that trying to really get a handle on how things work in China without actually being here is almost impossible. Thought leadership in the Chinese luxury market is a rare commodity, and we should know.

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