Chinaâ? his grown affluent segment overall attracts luxury brands for many years. Gucci, LV, Zegna and many other brands on the Chinese market in the early nineties opened before it starts to generate cases1. And rightly so, because more than 300,000 Chinese have a net worth of over U.S. $ 1,000,000. The Mainland? S millionaires control over U.S. 530 billion U.S. dollars in assets and more than 170 million Chinese can afford to buy brands2 high level. In fact, it now seems clear that the Chinese luxury market of consumers who did not exist 20 years ago, is dominated on the way to the top of retail.
But what about the domestic luxury brands?
China has a long history in the appreciation of luxury?? For example, tea, jade and silk – and given the impressive growth of domestic consumption of luxury goods, local brands must have many opportunities to grow.
Despite the thirst for luxury consumers in China, very few luxury brands have declined. In fact, several analysts have observed that when it comes to luxury consumers in China are more likely to buy products outside the China3.
Labbrand Previous research has confirmed that consumers are influenced strong appreciation of luxury goods by Branda?? country of origin. In fact, â?? Foreign / Western? Origin seems to many as some categories of luxury goods.
However, it is true that industries such as clothing and high fashion accessories, the biggest foreign brands dominate in other industries, particularly those with deep roots in Chinaâ? ? heritage and tradition, Chinese brands have a good chance of winning.
In fact, were found in a recent study by Mastercard, Chinese top expenses, born in Hong Kong Chow Tai Fook Wu Liang Ye, rather than domestic and Maotai Cartier and the Spanish, Australian and German liquors4.
In fact, resulted in the same inquiry as the top quality for Chinese consumers against other considerations 92nd place with a remarkable 7% of respondents said quality as first criterion in the purchase of luxury, well before the awareness is a good score 68. 3% or fashion design, with 58th five% 5
While until a few years ago, this was as Chinese brands see no chance had the luxury market6 tap in these circumstances, a window of opportunity appears to exist.
So now the key questions are:
/> 1 What are the manufacturers who are already perceived as a premium luxury residential consumers?
2 What are the challenges and opportunities they have to overcome to win the preferences of consumers at home and abroad? all
Labbrand has to investigate these issues. We interviewed some people, industry insiders and outside, and a list of 10 brands of Chinese luxury
created a Tiger NE – founded in 1992 < , br /> 2 Chow Tai Fook – 1929
3 based. Kweichow Mao Tai – 1999
4 set. Omnialuo – by the year 1998
5 Phrase. Erdos Cashmere – began in 1979.
sixth Wuliangye – founded in 1959
seventh Changyu – 1892
8 built. Pua Yunnan? It tea?? Founded in 1975 and privatized in 2004.
9 Dorian Ho – founded in 2004.
10th Xiangyunsha silk – 2003
We found that those in charge of them believe that brands are luxurious.
The
quite interesting, was the attribute most frequently cited? ? Chinese heritage ????. In fact, in many of these brands or are deeply rooted in Chinese culture.
– Kweichow Mao Tai, Wuliangye, Changyu, Pua Yunnan? Tea ER, Yun Xiang Silk yarn are deeply rooted in Chinaâ? cultural heritage, as they traditional brand products from China. In fact, there is no foreign competitors, that those marks could be an internal dispute in the same position. For traditional products, such as â?? Bai jiuâ? Alcoholic beverages, tea, ginseng and silk hand, there is no other country, the same know-how to China has not. Take Pua Yunnan? ER Tea For example: in 2005, sold the 64-year-old Pu’er tea 500g an auction for one million yuan, which is six times more expensive than gold7.
– DO Omnialuo and Dorian Ho Tigers are all relatively young brand and they were all in an area where the Chinese are competing brands are relatively small: the luxury fashion. Their strength lies in the fact that they source roots, when produced in different ways, the Chinese culture through the combination of Chinese traditional craft techniques with western style and quality.
However, when it comes to customer preferences is not yet able to compete on an equal footing with foreign luxury fashion. None of them receive the same recognition as the best European luxury brands – even though both have participated in fashion shows up in China and abroad – and they are generally not as luxurious as their foreign colleagues considered. In general, the reasons most often cited to justify this view are the following:
* they are not? Location Makinga? as foreign fashion brands
* Consumers do not trust the quality at the same level of foreign brands
The ; quality experts “; / strong> be />
– Chow Tai Fook and Erdos Cashmere, on the other side are the trademarks of a different kind of your brand is rooted in their ability to improve the quality and useful products to good targeting, the ability to be helped-known and respected in the country, has the same.
For example, Chow Tai Fook jewelry, one of the most luxury brands known in China. Founded in 1929 in Canton, then bought by Hong Kong businessman Chen Yu Tung in 1956, it combines the luxury fashion and maturity of high quality products to customers using a higher income groups8.
Chow Tai Fook shows the value of word of mouth in the Chinese culture. The company develops its brand more through reputation and word-of-mouth than any formal business plan. You did it, the preferences of consumers thanks to its long history and audio functions (Chow Tai Fook jewelry brand has won the first gold medal at 999.9 in jewelry of gold, which has become a normal industry standard today).
construction of luxury Chinese / strong>
So what are the challenges and opportunities, what are the marks Chinese luxury struggle to win consumer preferences at home?
On the one hand, it seems that Chinese consumers kindly to their national brands are the status and quality of reporting in earnest. Chinese cultural elements and traditional skills seem all the essential features of the mark in the top luxury home. In fact, categories of products where China has a long historical tradition, Chinese brands seem to be unmatched.
In the first case, we believe that Chinese brands can reap success of their heritage, to build a solid client base and ultimately increase brand awareness.
While there are obstacles to the development of the Chinese luxury brand:
1 Lack of know-how and marketing functions
Our Top Ten invest some points consistently in the image. Many of them rely solely on their own heritage of consumers to win and not really invest in a communication activity. Brands such as silk or Xiangyunsha Yunnan Pua? ER tea not even a well-designed website, nor do they have the right to protect their brand.
1 See the label “Made in China
Chinese consumers are not only marks in more luxury brands and Chinese generally associated with low quality in China. In addition to product categories where China is traditionally well Labbrandâ respondents? S survey demonstrates clearly that:
; * The concept of luxury is strongly linked to the issue of brand awareness. The brand is more, the better support and demonstrate the status of the buyer. ” , br /> * Esteem to luxury brands seem to be generally higher for brands that are not marked one?? Made in Chinaâ ????. There are still a long road ahead of Chinese luxury goods to compete on the world stage with established brands. 1 October 2007 Edition, Cafolla L., â?? China Luxuria???? , a magazine
* The mark is an indicator of the quality and design. Foreign luxury brands of fashion are expected not only to guarantee exclusivity of designs, but also the originality and security Product. />
satisfy needs of buyers of luxury.
2 Plus 2006, No. December, B. Black and V. Wong, â?? Money Insight ????, Talksâ
3 The top 10 brands, which are favored by China’s richest whole of Europe or the United States, by Hurun Report 2007 Best of the Best Brands Survey http://www favorite of China’s richest.. Hurun. Net/bestofbest2006en
aspx also CFR:
– Note 2
– 2008 N. Debnam, Svinos G., â? The luxury consumers in China: Moving the Curve? KPMG < , br /> – 2006, R. Chadha, a P spouses?? The cult of the luxury brand: Asia inside? S Love Affair with Luxuria?
4 21/02/2008, MasterCard Worldwide, cited by Chen Shu-Ching Jean in?? Consumers in China Over High-End seek quality STATUSA ????, http://www. Forbes. com/markets/2008/02/21 / china-luxury-survey-markets-equity-cx_jc_0221markets02.
5 html MasterCard Worldwide, cited by Shu-Ching Jean Chen in one?? Consumer upscale China Research Quality More than 02 STATUSA 08 ????, 21st http://www. Forbes. com/markets/2008/02/21/china-luxury-survey-markets-equity-cx_jc_0221markets02.
html sixth in 2006, Martin Rouleau Asian brand strategy, how Asia builds strong brands
seventh http://www. Telegraph. co. uk/news/worldnews/1555518/Tea-in-China-costs-six-times- as-much-as-gold.
html 8 A brilliant legacy – China. HKTDC. July 10, 2008.
. com / is also the portal for Labbrand Branding Blog: . com / english / news_and_articles. php and evaluations related to the brand, hot topics, with particular emphasis on China.
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