This is the project that our group prepared to assess the management of a luxury Italian brand in Chinese market. It includes a brief survey, inventory analysis in the local context, as well as the analysis and recommendations to enhance the brand's activities, which will benefit the brand equity in long term of the brand without damaging the brand image. The goal is to "translate" the language of the brand to convey the messages and preserve the importance of craftsmanship, connection with lifestyle, and the symbolism among Chinese consumers.

2. BOTTEGA VENETA
“When your own initials are enough”

3. TABLE OF CONTENTS
Introduction
market analysis
brand inventory: brand elements &
secondary associations
brand inventory: existing 4ps
pods + pops
brand exploratory
brand resonance
mm recommendations
conclusion

4. o founded in 1966 as a leather
goods house
o known for its signature
“intrecciato”, a unique
weaving pattern created by
the bottega veneta
craftsmen
COMPANY BACKGROUND
o acquired by the house of
brands, kering, in 2001.
o currently headed by
creative director, tomas
maier

5. o regained its footing in the
industry by returning to its
original identity
o fastest growing brand in
kering
COMPANY BACKGROUND
o bottega veneta handbags
contributed to 85% of its
revenue, driving record
profits
o china was the best
performing market even
though only entered the
market in 2007

6. BOTTEGA VENETA IN CHINA
41 outlets in china even distributed amongst the first, second and third-
tier cities
largest flagship store located in shanghai which serves as a concept store
known as to the locals, its chinese name was unveiled on its weibo
page in 2013

7. 1 2
Rise of the upper and middle
class
- More noticeable in the
second and third-tier cities
- Greater disposable income
and growing purchasing
power
Changes in local tastes and
preferences
- Preference towards discreet
brand designs
- Emphasis on local
craftsmanship and culture
(E.g. Shang Xia)
LUXURY BAG TRENDS

8. 43
Increased spending outside
china
- Import tariffs and higher
pricing strategies
- Currency fluctuations and
rising middle class
- Sales in Europe rose 29%
while revenues in Japan
jumped 26%
Promotion of brand heritage
- Immersion into brand
culture
- Interest in history, heritage
and product quality of
brand
LUXURY BAG TRENDS

9. 5
Luxury brands taking to e-
commerce
- Fall in growth of luxury
bags industry
- Move to online platforms
help reach a wider audience
- 45% of online consumers
purchased most of their
luxury items online
LUXURY BAG TRENDS

10. BRAND ELEMENTS

11. “venetian shop”
symbolizing origins from vicenza,
italy
bǎo
nurture
preserve the youth
forever
dié
butterfly beauty and femininity
jiā
home “venetian shop”
BRAND NAME

12. philosophy of individuality and confidence
never uses bold logos, secondary lines and
celebrity endorsements
discreet luxury for self assured consumers
who do not feel the need to “wear someone
else’s name”
“when your own initials are enough”

13. unique artisan technique of weaving leather
synonymous with brand
“non-logo” logo
attempts to copy by other designers but bottega’s
quality and precise craftsmanship remains unrivalled
not only bags but almost every bottega product
INTRECCIATO

14. o pivotal character
o saved company from brink of
bankruptcy
o brought brand back to life
o designed many of bottega’s iconic
bags
TOMAS MAIER
o founded artisan school to perpetuate
traditions
o devised ways to make sure that brand
kept strictly to its brand identity yet
continue to attract consumers

15. BRAND ELEMENT
Criterion
Brand Name
Brand Mantra
Intrecciato
Tomas Maier
Memorability
x
x
✓
x
Meaningfulness
✓
✓
✓
✓
Likability
✓
✓
✓
✓
Transferability
✓
✓
✓
✓
Adaptability
✓
✓
✓
✓
Protectability
✓
✓
x
x

16. SECONDARY ASSOCIATIONS

17. bottega
veneta
made in
italy
transfer
quality
high
specialization
elegance
quality
artisans
specializing in
intrecciato
elegance
COUNTRY OF ORIGIN

18. • held 3 exhibitions in shanghai so far
• latest one was ‘facing faces’
• to protect local culture & help
young artists grow
• convey connection to local culture
and boost brand image
ART SPONSORSHIP

19. Bottega
Veneta
Art
Exhibitions
TRANSFER
chinese
credibility
(reputable
artists)
intellectual
theme
classic
artisan
intrecciato
design
heritage of
49 years since
1966
sophistication
european
contemporary
art
ART SPONSORSHIP

20. each season, a different guest photographer/artist is
invited to shoot an ads campaign
given free rein to interpret, capture and communicate
the brand’s creations, injecting own art & story into the
ads
“ART OF COLLABORATION”

21. bottega
veneta
photographers
& artists
transfer
aesthetic
individual
unique
storytelling
creativity
classic
designs
“when your
own initials
are enough”
innovation
“ART OF COLLABORATION”

22. waitanyuan: a renowned
commercial area peppered with
splendid buildings that have
layers of rich history dating back
to the early 20th century that is
now undergoing redevelopment,
aiming to revamp to become the
21st century landmark of
sophistication deeply associated
with cultural and fashion
concepts
largest concept store in china located in one of the preserved
historical buildings in waitanyuan
leverage on waitanyuan’s rich history and culture, further adding to
the brand’s artistic image

23. Bottega
Veneta
Waitanyuan
TRANSFER
Colonial
style
buildings
Rich
cultural
history
Commercial
district
“Venetian
Shop”
Luxury
Heritage
of 49 years
since 1966
LOCATION OF STORES

24. BRAND INVENTORY

25. “stealth wealth”:
category of rich people,
who are less inclined to
flaunt their affluence,
thus, giving only subtle
hints about the
wealthiness

26. product:
handmade, exquisite design & materials,
aesthetics, empowerment, lifestyle
price:
signal of luxury, higher margin in china
In china: weak link to lifestyle,
insufficient augmented product
externalities/tariffs, growing demand,
brand image maintenance

27. place:
unique store concept, landmark locations
promotion:
visual ads, experiential, website & social
outlets
underleverage of social media tools, lack
of world expo succession events, “lost in
translation”
omni-channel strategy is not exploited in
china (no online shopping)

28. POINTS OF PARITY &
POINTS OF DIFFERENCE

29. Competitive frame of reference
• Premium luxury category; Avg. Product Price Range up to US$5,000

30. Competitive frame of reference
• Quantitative Research on 40 Chinese Luxury Consumers
• Important Purchase Dimensions: Craftsmanship & Exclusivity
• Main Competitors: Gucci, Celine, Fendi, dior
Craftsmanship
(artisanal)
Exclusivity
Accessible
Mass-produced

31.
BRAND
ELEMENT
SECONDARY
ASSOCIATIONS
POP
HIGH LEVEL OF
CRAFTSMANSHIP &
USING FINEST
MATERIALS
(=)
sophisticated consumers are discerning and premium luxury brands must
offer products of artisanal quality;
ex. Gucci embraces her hand-crafted legacy of producing 100% of the
products in Florence workshops
EXCLUSIVE
DISTRIBUTION
CHANNELS
(=)
tightly-controlled distribution network of directly operated boutiques,
exclusive franchise stores & strictly selected department/specialty stores
worldwide;
ex. in China, both BV and Celine will slow down the pace of store openings
but expand the shop spaces
COUNTRY OF
ORIGIN:
“MADE IN ITALY”
✓
(=)
“marriage of masterful design and artisan technique”; synonym of
“elegance”, “sophistication” & “desirability”;
ex. Celine (France) opened a leather goods factory in Florence, Italy to
leverage on secondary association
POINTS OF PARITY

32.
BRAND
ELEMENT
SECONDARY
ASSOCIATIONS
POD
BRAND MANTRA:
“WHEN YOUR OWN
INITIALS ARE
ENOUGH”
✓
(+) integrating brand mantra into PRD designs;
unlike other premium luxury brands, BV’s products wetn logoless
that exudes timeless elegance and sophistication
“ART OF
COLLABORATION”
✓
(+) strategic collaborations in advertising;
BV invites different photographers & artists in each ad campaign to
interpret the brand, BV = “work of art”
EXTENSIVE PRODUCT
PORTFOLIO
(+)
leverages on expertise in leather craftsmanship to extend into
home collection ;
provides greater variety to sophisticated consumers, allows them to
immerse in luxurious lifestyle experience
POINTS OF DIFFERENCE

33. bv positions itself as a
premium luxury bag brand,
targeting the upmarket,
individualistic and
sophisticated consumers who
seek timeless elegance and a
luxurious lifestyle experience
BRAND POSITIONING

34. BRAND EXPLORATORY

35. secondary research:
1) online interviews with
tomas maiers and marco
bizzari
2) online report by cnbc
BRAND EXPLORATORY
main findings:
o sophisticated global
consumers with confidence &
personal style;
o upmarket individuals willing
to pay a premium for
craftsmanship of bv
handbags.
o “louis vuitton has become too
ordinary”, prefers brands like
bv due to “exclusivity”.

36. on a group of 40 consumers to assess consumer’s
awareness, perception and attitude
QUANTITATIVE RESEARCH
“select all of the luxury bag brands that they have heard of before in the list”
bottega veneta: 67%, below the median score of 85% of 27 luxury bag brands listed.
0
10
20
30
40
50
Louis
Vuitton
Chanel
Prada
Bottega
Veneta
T.O.M Recall (%)
“name the first three luxury bag brands that come to your mind”

37. top reasons for purchase:
o high level of craftsmanship in products
top reason for non-purchase:
o inability to identify with the brand
QUANTITATIVE RESEARCH
reason for purchase or non-purchase of bv handbags

38. “list the words that comes to your mind when you hear
bottega veneta”
WORD ASSOCIATION TEST
“high-quality”
“venice”
“weaving”
“exclusive”
“expensive”

39. weaving
logoless
understated
durable
craftsmanship
expensive
MENTAL MAP: FUNCTIONAL

40. BOTTEGA
VENETA
sophistication
luxurious
lifestyle
elegance
discreet
soft
obscure
MENTAL MAP: SYMBOLIC

41. BRAND RESONANCE

43. Which of the following luxury bag brands have
you heard of before?
SALIENCE
low brand awareness

44. • shunned away from celebrity endorsements and display of a visible logo
• country of origin: italy
• BV initials project
– introduced in china
– increased engagement with the brand
– expression of individuality and uniqueness
• brand personality: ‘discreet’, ‘confidence’, ‘individuality’ ‘ sophistication’
IMAGERY

45. o discreet yet recognizable through
design
o credible and trustworthy brand
dedication to artisanal production
reliability inscribed in all kering
brands
o consistent delivery of extraordinary
craftsmanship through specialised
school that trains leather artisans
skills to perfecting intrecciato
weaving
understanding the heritage of
artisan production
“i like bv because of the craftsmanship
behind the brand”
JUDGEMENTS
3
1
2
5
11
12
6
Strongly
disagree
Strongly
agree

46. • evokes more personal and enduring
feelings
• self respect
– pride themselves with the
craftsmanship and heritage due to
brand’s commitment to stick to
artisanal origins
– personal satisfaction and self
regard
• low levels of social approval
– lack of conspicuous logo
– self assured consumers
“bv gives me a sense of social approval”
“bv gives me a sense of self respect”
FEELINGS
5
4
5
6
8
5
7
Strongly
disagree
Strongly
agree
12
9
8
3
4
3
1
Strongly
disagree
Strongly
agree

47. • behavioral loyalty
– low repeat purchases
• disengaged community
– unique individual expression of
style and lack of interactive
social media platforms impede
affiliation with other users
associated with the brand
• lack of active engagement
– relationships after purchase are
not sustained
– lack of platforms for
interaction with brand after
purchasing product
“I will buy as much of BV as I can”
“i feel a deep connection with those
who uses BV’s bags”
RESONANCE
18
5
7
4
2
2
2
Strongly
disagree
Strongly
agree
17
9
8
2
3
1
0
Strongly
disagree
Strongly
agree

48. MM STRATEGIES

49. additional elements like warranty
& repair services contribute to
overall value perceived by
customers
PRODUCT: WARRANTY, REPAIR
issues:
no warranty for bv bags
proposal:
offer warranty or repair
services

50. exhibitions
- trend of chinese consumers emphasizing brand heritage
PRODUCT: EDUCATING & HOSTING CUSTOMERS
VIA EXTENDED SHOP SPACE
- exhibitions leverage on the trend, where chinese
consumers value brand heritage
- exhibitions to educate, increasing brand knowledge

51. hosting top tier customers
- utilize exhibition space for exclusive previews
- enhance customer service
- reinforce positioning - “luxury lifestyle experience”
PRODUCT: EDUCATING & HOSTING CUSTOMERS
VIA EXTENDED SHOP SPACE

52. e-commerce
o rise of e-commerce in china
o luxury brands slow to establish their e-commerce
o bv has competency in this area - online store available
in 48 countries
o proposal:
o introduce e-commerce services
PLACE

53. 1) artists and photographers
2) co-branding
PROMOTION: COLLABORATIONS

54. fly hnwi consumers to the main workshop
in florence, italy
o interactive tour
o know more about the production
processes and methods of making a bv
bag
o customers customizing their own bag
PROMOTION: EXPERIENTIAL MKT
1
- bv yet to establish resonance
- targeted at bv’s top tier customers

55. cocktail parties
o build a community around the brand
PROMOTION: EXPERIENTIAL MKT
2
- bv yet to establish resonance
- targeted at bv’s top tier customers

56. o targeted at consumers in
general
o inspiration station
o fashion advice, write reviews
of bv products, engage in
online discussions with
fellow community members
PROMOTION: ONLINE UGC PLATFORM
o generate more keywords,
better seo
o improve brand awareness,
establish r/s with customers

57. Only 10 percent of Chinese
consumers are satisfied with
the service of luxury retailers
in China
Top reasons - staff with limited
knowledge of the products
(China Luxury Forecast, 2014)
PEOPLE
“More than any other
communications medium,
employees can breathe life,
vitality, and personality into the
brand.”
(Leonard L. Berry and A.
Parasuraman, Marketing Services:
Competing Through Quality)

58. PEOPLE
1 2
reinforcing brand
mantra via staffs’
self-expression
staff training

59. THANK YOU FOR YOUR ATTENTION
lim chee yang, lim xue ying,
sharon lim yu-zhen, tan sheng liang,
tracy seet hui li, victoria paskannaya

60. design by www.feelfreetostalk.me
icons from www.flaticon.com
inspired by “yves” by tugcu design co.