the challenge of the increase demand for luxury brand from chinese market
TRANSCRIPT
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The Challenge of the increase demand for luxury brand from Chinese market
Presented by Huang Jing 06, December, 2011
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In UK, retail value is from £ 1950 to £ 2250 during 2011
Iconic bag LADY DIOR
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Lady Dior Average weekly Sales Figures 2011
The Consumption of Lady Dior by Chinese is much higher than either European or others.
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Economics Environment
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The tables show China GDP has been incredibly growing while European area went down oppositely.
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In China
Skylines in Shanghai
Million private car ownership
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In Europe
soaring unemployment rates
Bank Crisis
Shops were closing down
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Question Marks:
Are economics the only reason for high Chinese demand, or is it more complicated than that? And is it all good news for luxury brands?
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More Reasons are…
Culture Focus and Lifestyle Dress Code Consumer Promotion Events Brand Appeal
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The Comparison between China and
Europe
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Culture Focus and Lifestyle
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Success defined by what you have, you do, what your social position is
In China
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In Europe
more focus on the life they want
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Dress Code
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In China There is no strict boundary of dress code to require women wear in different occasion.
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In Europe People follow the dress code to identify themselves and fit in the different social life.
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Consumer Promotion events
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In China
Lady Dior bag of light
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In Europe
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Brand Appeal
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Luxury brands for both of the markets convey a quality standard of excellence, it acts as social codes indicating access to the rare, exclusive and desirable.
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Chinese people enjoy the visible and direct
definition of being high social status which luxury brand value could bring to them. They
are desired and willing to pay for the big ticket luxury they want.
European people would like own the luxury to suit their lifestyle. Also they are paying to be part of the story and brand culture.
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We need to think again…
are Chinese (former famous money saver)
the only luxury big spender for luxury fashion brand nowadays?
Is there worry for destroying the brand value or luxury exclusivity?
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One Case Analysis
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Christian Dior, Gucci, Jimmy Choo, three boutiques in Birmingham are all stocking and selling Bag and other accessories, the different strategy of product and price management shows different sales performers.
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Birmingham Selfridges Concession Sales Figures January to October, 2011
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Price and Product Range and Sales Percentage
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Nationality Consumption Figures
According to the figures above, they show British surely spend in Luxury brand as a European market, no less than Chinese. Chinese are more prepared to invest in one-off big ticket items, or actual more items.
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The challenges..
deliver the brand value globally
Maintaining the exclusivity or global brand reputation
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Conclusion
Luxury brands need to balance their wish to expand in new markets without abandoning their traditional markets to avoid the possibility of brand value and exclusivity damaging, even the business growing.
They should concentrate on promoting brand values that are compatible across these markets. But continue to deliver the brand message in a tailored way.
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Discussion
Why do you think Chinese
like to buy luxury brands so much?
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Thank you !
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Reference Lady Dior Average weekly Sales Figures September,
October2011 from Christian Dior internal information Oct, 2011
China GDP, Euro Area GDP Figure Tables from Trading Economics
http://www.tradingeconomics.com/ Christian Dior, Gucci, Jimmy Choo Sales
figures/Transaction detail Birmingham, January to October, 2011 collected from sales figures,2011, Selfridges, Birmingham
The percentage figure of nationality consumption from Christian Dior, Gucci, Jimmy Choo, Selfridges, Birmingham collected from staff interviews, 21st, Nov, 2011
Luxury Brands in China by KPMG http://www.kpmg.com.cn/en/virtual_library/
Consumer_markets/CM_Luxury_brand.pdf