Monday, 15 June 2009

Some Luxury Brands Are Striking Out In China – 12/6/09

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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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury,