China is once again the word on the luxury markets’ lips. It seems there is a consensus that China must be wooed. A Reuters article claimed, “Luxury groups agree that China, where consumers are very brand-conscious, will soon become the industry's No. 1 market and this year will be one of the few emerging markets to enjoy growth.”
But unfortunately many luxury brands are making little headway into their Chinese expansion. Champagne house Taittinger and car marker Lamborghini are two brands that are battling. Taittinger’s Executive General Manager, Pierre-Emmanuel Taittinger, said that the market was not ready for them as "there is not a strong (high-end) wine culture there yet." While a Lamborghini representative said that the country's tradition of luxury chauffeurs was a factor in lower than expected sales, but the market is growing more receptive.
Reuters also quoted Van Cleef & Arpels CEO, Stanislas de Quercize, as suggesting, “The challenge in China is being able to explain to 1.3 billion people what your brand is about.” Hmmm, sounds like the luxury brands have their work cut out for them.
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