Thesis as partial fulfilment of MBA: LUXURY FINDS ITS SPARK IN THE MIDDLE KINGDOM: THE YOUNG GENERATION AND MODERN CHINA PROVOKE A RETHINKING OF FORMER CONSUMER ENGAGEMENT STRATEGIES A GUIDELINE FOR FINE WATCH BRANDS

1. International Master of Business Administration
Academic Year 2018 / 2019
“LUXURY FINDS ITS SPARK IN THE MIDDLE KINGDOM: THE
YOUNGER GENERATION AND MODERN CHINA PROVOKE A
RETHINKING OF FORMER CONSUMER ENGAGEMENT
STRATEGIES”
A GUIDELINE FOR FINE WATCH BRANDS
Author: Isabel Schlatter
Abstract
This research intends to offer original recommendations for future fine watch brands to enter
the Chinese luxury market successfully by analysing the contemporary and upcoming general
luxury consumer behaviour, and by redefining the consumer engagement strategies relating to
the selected industry. The first part of this research will give insights about the current overall
Chinese luxury market how the steadily growing economy promises a high demand for luxury
goods (Deloitte Italy S.p.A., 2018). The aim is to present an in-depth investigation of the
Chinese consumer market to display the most promising consumers, and to understand their
consumer behaviour. Few academic studies have included various dynamics of socio-political,
geographical, and economic developments to understand the difference in luxury consumer
behaviour. In this regard, the study provides a broader and profound understanding of internal
and external factors affecting luxury consumer trends and tries to present valuable information
on the profiles of luxury consumers in China (Zhang, 2013).
The evaluation will give an insight how the attitude differs from previous common consumer
behaviour assumptions, and how current activities and investigations undertaken by today’s
premium luxury brands are still considered to be appropriate or outdated strategies to engage
their target audience. The topic will also be discussed with regards to more traditional
distribution channels and the more considerable attention in online social networks and e-
commerce platforms (Business Monitor International Ltd., 2017). The focus of interest is not
only to understand how to engage their audience by involvement of social media and online
sales channels, but to examine if premium luxury brands are knowledgeable about the tendency

2. that their targeted consumers became demanding, that they became well informed and that they
are not impressed anymore by a luxury label alone (Rambourg, 2014).
The previous findings help to understand the current Chinese luxury market landscape to make
recommendations specifically for the fine watch industry. The study will therefore continue
with providing insights from the luxury fine watch industry. The case study about Financière
Richemont SA and their reshaping expansion strategy will contribute valued learnings. The
concentration will be on the acquisitions which enlarged and modified their business models
and distribution channel possibilities. By benefiting from this observation, interviews with
following partners will help to enrich adequate recommendations: Ms Muriel Wormser who
has an expertise in the luxury industry and gained her expertise through working for over 20
years in major international group companies such as L’Oréal, Dior Montres and Thierry
Mugler, and Professor Dr Fabio Duma, who is Head of the Competence Team Luxury
Management at the Zurich Applied Science School of Management and Law in Switzerland
and who is an entrepreneur of his luxury brand. A survey with carefully selected Chinese
protagonists around the online sales channels and the involvement of social media will give a
more insightful understanding about appropriate distribution channels to conclude with
effective and forward-looking business approaches for new fine watch market entries.
Keywords: Chinese Market, Capitalization, Luxury Goods, Generation X & Y Chinese
consumer behaviour, social media