Will China be the new Dubai? It is only a question of time.
Actually China is the fastest growing market on the planet. It’s just a question of time (exactly it’s a question of next five years) when it become also the most important market for luxury goods on the earth. Currently it is in the second position, just after Japan.
Under the name of luxury goods we understand items not so necessary but very desirable, possession of which supplies a way of comfort and indulgence. Most of them belong to at least one of these sectors: fashion, accessories, footwear, perfume, cosmetics, jewellery and lingerie.
The recent 21st Century Deluxe 2009 Report effectively describes what sorts of products are most wanted in China. For all the high-end Italian brands it appears to be a chance to not be missed. Until recently the purchases were made with little awareness – today situation is completely different. Rich Chinese know exactly what they need and what they need. That’s why many fashion houses are looking to open more boutiques in the country of the Rising Sun. But luxury just isn’t only fashion and accessories – it is simply a lifestyle.
Listed below are the brands favored by the new rich Chinese:
Jewelry & Watches – Cartier (France)
Fashion – Gucci (Italy)
Airline – Air France (France)
Hotels – Peninsula (Hong Kong)
Alcohol – Martell (France)
Cars – Mercedes-Benz (Germany)
Christmas gifts – Omega (Switzerland), Swarovski (Austria)
Crisis? Not for Chinese millionaires.
The Chinese people love and buy luxury goods. Their passion for luxury is irresistible and the market appears to be rising despite global crisis. In 2009 they bought a quarter of the luxury goods produced within the planet, at a complete of 9.4 billion USD. This sum could possibly be even higher, if account were taken of the purchases made by the Chinese outside the country. It is undoubted opportunity for all those that want to start out their very own business in China. Business opportunities which offers the country widened to a new field.
This trend has been noted by luxury brands (mainly French and Italian) which invest all the time in Chinese market. Louis Vuitton, Bally, Gucci, Salvatore Ferragamo are one in every of the primary brands which have opened their first stores in the country of China.
Among those that drive the situation on the higher-end products are mainly young people of China which are 20 years younger than their counterparts within the United States and Japan. It is the new rich class which can be potential consumers of the best quality goods. China has great potential for this type of market, primarily as a consequence of the large population living in large cities. Not without significance is that the young consumers wish to emphasise their status. Being an influential person of high social status impresses others. And tips on how to let others know with whom you’re coping with? Of course with branded gadgets.
It’s also worthy of note that young Chinese accepted in a short time “shopping and mall culture”. In 2020, seven of the ten largest malls on the earth can be located in China. But Chinese like to buy abroad as well. Mainly because it is often more cost-effective. That is why they often travel to shop in Europe’s designer fashion boutiques. In response to The Word Trade Organization about 100 million of Chinese will go abroad in 2020.
That are the fundamental strategies for many who plan the opening of luxury brands in China? First of all, investment in promotion of recent brands with sufficient incentive to the client is essential. For instance, organizing promotional, closed events necessarily with the presence of celebrities. Second of all, it’s essential to involve local elements to the production of luxury brands, mainly by moving the factories into China and by cooperation with local partners.