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Luxury Brands in China--the Brand Experience POV (Spikes Asia)

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At Spikes Asia in September 2013, Dan Carter, Senior Creative Director in Jack Morton's Shanghai office, talked about the opportunities to build luxury brands in China by taking a brand experience …

At Spikes Asia in September 2013, Dan Carter, Senior Creative Director in Jack Morton's Shanghai office, talked about the opportunities to build luxury brands in China by taking a brand experience approach. He talked about brands including Johnny Walker, Porsche, Tmall and others.

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  • 1. FROM RICH TO NOBLE.How luxury is evolving in the Middle Kingdom.
  • 2. WAS BASED HERE…
  • 3. NOW HERE.
  • 4. NO TWO CITIES ARE ALIKE.
  • 5. SOME FAST FACTS.
  • 6. 2012 – 12% 2015 – 29% By 2015, China will be the world’s largest luxury consumer market.
  • 7. Online Shopping Market by 2015 – 18 Trillion Yuan ($2.86 trillion USD) (US forecast for the same period: $84 billion USD)
  • 8. China's consumer class currently represents only about 19 percent of the national population.
  • 9. Urban household income is expected to double between 2010 and 2020.
  • 10. 122 US Dollar Billionaires. 1,280,000 US Dollar Millionaires.
  • 11. SOME TRENDS.
  • 12. Brand loyalty is skyrocketing (or at least beginning to).
  • 13. The emergence of a ‘buy now’ mentality.
  • 14. A dip in ostentatious wealth.
  • 15. WHERE WE THINK IT’S GOING.
  • 16. Chinese consumers are increasingly travelling overseas to purchase luxury goods.
  • 17. Dollars saved and spent are no longer the sole mark of luxury.
  • 18. Johnnie Walker House, Beijing.
  • 19. It’s not just about showing, but knowing. Lawrence Law, General Manager, Johnnie Walker House
  • 20. BY TIERING THE EXPERIENCES.
  • 21. High energy brand experiences targeted at young consumers.
  • 22. Personal, one-to-one (or one-to-few) experiences are reserved for the ultra-premium market.
  • 23. Since the houses first appeared in 2011, sales of ultra-premium Johnnie Walker whiskey in China is up 64% year on year.
  • 24. High brand awareness. Low brand understanding.
  • 25. From casual motoring fan to Hardcore Porsche enthusiast, without diluting the brand.
  • 26. Make it focused.
  • 27. Make it focused. Make it social.
  • 28. Make it focused. Make it social. Make it tiered.
  • 29. Focused in Tone.
  • 30. But also focused on the right audiences.
  • 31. Make social effortless.
  • 32. Keep your audience engaged.
  • 33. Porsche DNA
  • 34. Porsche Motorsport
  • 35. Porsche Lifestyle
  • 36. Porsche Performance
  • 37. Different audiences can have different experiences. But everyone should be treated in a way that lives up to the brand.
  • 38. Different audiences can have different experiences. But everyone should be treated in a way that lives up to the brand.
  • 39. 7000+ attendees (1500 in 2013) 100000+ unique posts Largest event undertaken by Porsche in Asia
  • 40. In Tier One cities, 40% of internet users shop online.
  • 41. Traditionally C2C. Increasingly B2C. And the B’s are premium.
  • 42. TWO: Luxury sites often take four times as long to load in China.
  • 43. Over 2000 sites offer premium B2C. Tmall.com has 50% of the market. And half a billion members.
  • 44. Quality is still an issue. Especially on Taobao (which we needed to distance ourselves from)
  • 45. Showcase the real world quality. Bring to life the convenience of online shopping.
  • 46. TWO: From online, to real world and back again. All anchored in quality.
  • 47. ONE FINAL THOUGHT DO IT RIGHT, OR DON’T DO IT AT ALL.
  • 48. THANK YOU. experience@jackmorton.com