豪华品牌在中国： 第III部分
战略为豪华品牌
由尼克· Debnam &乔治Svinos， KPMG
为某些豪华品牌，中国在亚太已经超过了日本和香港作为最大的单一市场。 (37)，但豪华品牌增长的出现在中国带来以它更加巨大的竞争。 国家的拥挤的街，例如南京路在上海，目击剧烈竞争在世界的豪华品牌之中。 当一些警告时中国市场变得饱和， (38)暂时环境仍然是一正面一个为潜在的新加入者。
• 营销
因为多数中国消费者有商标意识的低水平，他们也有商标信誉的低水平。 然而这也意味着销售人员可以是一个极端强有力的工具-以能力不仅通知他们的品牌的好处的消费者，但摇摆他们往做购买。
Luxury brands are investing large sums of money in heavy marketing to not just promote their brand and products but also to inform Chinese consumers about “luxury” and why they should pay a premium for products offered by luxury brands.Brand building is occurring on a massive scale, not only through print and television advertising, but also through luxury events and shows and customised lifestyle publications. Indeed, word-of-mouth luxury promotion and advertising through low circulation print media has not proved effective in China. Luxury events are held with increasing frequency in Beijing and Shanghai and many people attend simply as onlookers. The willingness of the Chinese media to publicise promotional events featuring celebrities means they have proved effective in reaching both aspirational and dedicated luxury purchasers. It is a chance to experience a so-called “luxury lifestyle” and to see products that are not available in the stores yet. Organisers may even welcome window shoppers as they expect that in the near future these middle-class shoppers will see their disposable income rise. (39)
• Diffusion strategies
Luxury brands are bringing many of the strategies that have worked in more developed markets to China. These include product diffusion lines which entice the less affluent and raise brand recognition among aspiring young shoppers. As China is developing, such strategies are not yet central to their success, but as the market becomes more mature and competition intensifies, more luxury brands in China may consider this approach.
• Local lines
Some luxury brands operating in China are seeking a local relevance, creating products that are specifically tailored towards or centred around Chinese consumers. For example, Louis Vuitton offered a range of Lantern Charm accessories based on the traditional Chinese lantern to celebrate the opening of the new Beijing store. (40) Luxury carmakers have also taken the lead in developing models specifically for the Chinese market.
• Local manufacturing
While companies are often wary of the “made in China” tag, companies such as Coach, Paul Smith and Armani have shifted some of their manufacturing to China in recent years. (41) Other luxury brands are boosting their presence in China to take advantage of cheaper local manufacturing. In addition to its retailing operations, Zegna bought a 50 percent stake in SharMoon in 2003, a Wenzhou-based company that produces men’s suits, and have invested in production units outside Italy. (42) French luxury house Hermès has also planned for investment into local production facilities as part of a broader strategy to double sales in mainland China over the next few years.
• Store formats
Most Western luxury brands have made the choice to not alter their formats when operating in China as they believed that even minor adaptations could seriously damage the parent company’s brand and global positioning. In China this has been working as Chinese shoppers are embracing international retail concepts. Luxury brands are operating mega-store formats (often the largest stores for the brand) with large ranges that have been shown to educate consumers about a brand and fuel an appetite for spending. (43)
As the market expands some luxury brands are moving out of smaller stand-alone outlets and out of hotels to expand and introduce even larger store formats. In the West Gate Mall Shanghai on the west section of Nanjing Road, a landmark boutique of ‘Dior Cosmetic’ opened in 2003, which was designated as the most luxurious Dior boutique, and made China the third country to have such a Dior boutique. Prior to its upgrading, annual sales of Dior in West Gate Mall were RMB 1 million (about USD 1.4 million).The new boutique was expected to surpass RMB15 million (about USD 1.8 million). (44) Similarly, Louis Vuitton’s expanded, three-storey China World store, with an overall area of almost 18,000 square feet and a sales area of 8,470 square feet, is the largest of the brand’s stores in China. (45)
• Rapid expansion
Most of the world’s leading luxury brands are rapidly expanding their China operations. That push is now extending to smaller Chinese cities such as Qingdao, a northern resort town and Chengdu in Sichuan province. Many of the brands active in China’s luxury market have plans to expand with boutiques in second and third tier cities. (46) Generally, the path for luxury brands is to set up shop in the primary “cluster cities” of Beijing, Shanghai, and Guangzhou, and from there steadily expand. The research of TNS shows that brand awareness and willingness to spend in many second-tier cities is already close to the levels seen in the three primary cities.
Primary and Second Tier Cities in China
• Using local partners
For a well-known name such as Louis Vuitton, entrance to the Chinese market has been aided by access to significant financial resources through its parent, LVMH. However, for smaller or more independent brands, the move to China can entail risk and require immense patience.
Many luxury brands are finding a local or regional partner or adviser to help navigate the market. (47) For example, U.S. watch retailer Tourneau has formed a partnership with Hong Kong’s Peace Mark Limited and International Watch Group to open stores in China. Under the brand name Tourneau, the new joint company, Peace Mark Tourneau Holdings Ltd., will open high-end stores in mainland China, Hong Kong, Taiwan and Macau. The first two stores will be in Shanghai, with a third in Beijing. Overall, 30 Tourneau stores are set to open in China within the next five years. (48)
Another large company that acts as an agent for brands in China is Hong Kong’s Dickson Concepts. It represents such brands as Polo Ralph Lauren, Brooks Brothers and ST DuPont.
Domestic luxury brands
In the past few years, local Chinese brands, once fragmented and backward, have been evolving rapidly. Local brands in China have been quick to pickup successful retail strategies from foreign entrants, establishing themselves in good locations and growing at a rapid pace. And, while most Chinese brands have yet to gain global visibility, within China itself, home-grown brands are becoming a source of pride and a badge of the country’s emerging self-confidence. (49)
Despite the recent success of Chinese consumer brands, very few local luxury brands have yet emerged. There are some brands which are perceived as being luxury on a local scale – and have succeeded in portraying themselves as being international even though their main market is a domestic one. Such brands include Goldlion (a once exclusive brand which has become more accessible in recent years), and jewellery brands Chow Tai Fook and Tse Sui Luen. Growing design talent and increased government support mean that many more Chinese luxury brands could emerge in the next few years.
One international brand which set up its headquarters in China is Ports International. Ports International’s move to China has given the brand a significant advantage in developing its brand and market share in the China market. Originally a Canadian company, it relaunched in the Chinese town of Xiamen and has expanded its product line throughout Asia and North America. Ports clothing has won publicity in fashion magazines such as Elle and In Style. In 2005 the brand was included in TIME magazine’s “best products for 2005” alongside well-known names such as Tod’s, Louis Vuitton and Chanel. It now boasts retail outlets and franchises across Hong Kong and mainland China, Japan, Dubai, Canada and the US.
While few truly domestic luxury brands exist, there are two brands which have emerged on a global scale and have been touted as being “luxury”. These two brands, LaVie and Shanghai Tang, are set apart because they do not principally target local luxury consumers, but rather aim to tap into the tourism industry and consumers around the world who are keen to capture some of the trappings of ‘Chinese luxury’. Designed and manufactured in China, LaVie has set up business in Shanghai’s Bund area where many of the world’s top luxury brands have gathered. Creator Ji Cheng, who studied at Marrogonni, a fashion design school in Milan, said her design idea was “Eastern concept and Western cutting.” About 60 percent of LaVie’s customers are foreigners. (50)
Similarly, Shanghai Tang has not specifically targeted local luxury consumers. It is unique in fusing old-China fashion with brave-new-world style and colour clothing. The popularity of the brand, and the fact that it is now partly-owned by the Swiss Richemont Group, helps to illustrate the fact that Chinese brands can emerge and succeed by tapping into a global market for Chinese-inspired luxury products.
Nick Debnam & George Svinos, KPMG
This is part III of a KPMG Retail Report. Next week we will publish part IV
Read Part I and Part II
March 14th, 2008 at 2:31 am
What do you see as effective online marketing and sales strategies for luxury brands, either B2C or B2B?
March 19th, 2008 at 3:16 pm
Thank you so much for updating me with China’s Business News, it helps me to know more about China. As everyone knows, most of luxury brands are purchased by clients all over the world. But I’m glad to know that more and more Chineses are the buyers too. I’m wondering now, how much chinese production scale will grow up, when most of chinese populance is able not only to manufacture these luxury brands, but also to buy it.