China - A luxury destination


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China - A luxury destination

  1. 1. CHINA
  2. 2.  Confucianism - different understandings of luxury Equality is very important and is also communicated by the government. Change in the Cultural Revolution (1966- 1976) “Lost generation” showed a different understanding of luxury Economic development transformed culture. history
  3. 3. Luxury White Role Collar FashionModels Luxury Role Workers Fanatics, Models Middle class aspirants Annual Annual income (in Income >10 hundred million Yuan thousands yuan ) Younger in Relatively age (WLA: older than 2007-35;2010- latter group 25) Higher social Working class status Higher Nouveaux purchasing Rich power customers
  4. 4. Consumer Distinct Signs ofComplex psychology Product DifferentiationConsumer influenced driven inStructure consumption by Chinese features culture Highlights – Male dominant market – Wealthy in China are 15 years (average) younger than those in US or Japan – Gifting –a significant chunk of spending
  5. 5. TRENDS trends
  6. 6.  Chinese wine market growing 20% annually and set to overtake US by 2015 Pets have become a luxury good Growing trend for Chinese art collection
  8. 8. Global Luxury Industry in China Domestic Luxury Industry Key Drivers • After spending endlessly on Western luxury, now they want a bit of their heritage and are asking “What did the emperor drink in the past?” • High-key-low-key phenomena • $$ Huge pool of money! Key Challenges • Perceived as being a cheap/mass manufacturer • Direct competition with brands having a rich expertise, heritage and craftsmanship • World’s counterfeit capital
  9. 9. The Rise of Chinese Luxury Brands
  10. 10. MAJOR Players
  11. 11. Market Share (Total RMB 87 Billion) 22.5 20.6 11 10.6 8.7 5.6 4.6 3.5Watches Leather Goods Jewellery Womens wear
  12. 12. • The European Business Review, 2012,”Luxury consumer behavior in mainland China: What exists behind façade of new wealth?” {Online} Accessed: 27 September 2012.• Lu, P., X. 2008,’Elite China, Luxury Consumer Behavior in China’ {Online}: . Accessed: 27 September 2012.• China Luxury Market Study, December 2011, Bain & Company Report REFERENCES
  13. 13. Click icon to add picture Anastasia Kozukhovskaya Diviya Malhotra Sarah Caffey Sobia Farooq Yil A M Schiele