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. Luxury White
Role Collar Fashion
Models 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. Consumer
Distinct Signs of
Complex psychology
Product Differentiation
Consumer influenced
driven in
Structure 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
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. 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. The Rise of Chinese Luxury Brands
http
://www.youtube.com/watch?v=JFb4AIV3OiE
12. http://blog.euromonitor.com/2012/05/china-driving-the-global-luxury-goods-industry.html
http://www.forbes.com/sites/bluecarreon/2011/11/02/can-china-produce-a-luxury-brand/
http://www.labbrand.com/sites/default/files/LAB_Luxury_Branding.pdf
http://www.thefinancialist.com/chinas-homegrown-luxury-market-expands-rogerio-fujimori/
http://www.cnbcmagazine.com/story/the-great-call-of-china/1423/1/
• The European Business Review, 2012,”Luxury consumer behavior in mainland China: What exists behind
façade of new wealth?” {Online} http://www.europeanbusinessreview.com/?p=2418. Accessed: 27
September 2012.
• Lu, P., X. 2008,’Elite China, Luxury Consumer Behavior in China’ {Online}:
http://books.google.fr/books?hl=de&lr=&id=m-PgS7sFRDIC&oi=fnd&pg=PT6&dq=history+of+china+luxury&ots=4HR
. Accessed: 27 September 2012.
• China Luxury Market Study, December 2011, Bain & Company Report
REFERENCES
13. Click icon to add picture
Anastasia Kozukhovskaya
Diviya Malhotra
Sarah Caffey
Sobia Farooq
Yil A M Schiele