Monday, 26 April 2010
Several articles in the MO Down have been dedicated to the Chinese market's voracious and growing appetite for luxury goods. According to a great article in The Huffington Post, Tom Doctoroff, North Asia Area Director of JWT advertising firm answers a range of excellent questions about what Chinese consumers really want. And the layered understanding that needs to be grasped by luxury brands in this lucrative market.
With China now the second largest luxury market in the world, that is (1) an incredible achievement in a relatively small amount of time; and (2) the growth seems destined to continue given the rate of success being experienced by this country with entrepreneurship and a vast and increasing range of business ventures operating internally and being exported.
Luxury brands must be focused on where in the life cycle the luxury consumer is, "the guy on the top of the mountain and he's never secure of his position, so he wants to stay on top - [reaching him] is about mastery and connoisseurship. ...Then you have new luxury - men moving forwards, in the middle of their journey. Then you have independent women and then you have youth." The integrity and professionalism of the product needs to speak specifically to these people.
"According to TNS, 64% of Chinese think luxury brands denote success, and only 1% think they denote superficiality." This is significant and therefore points to strong aspiration to actually acquire luxury goods, whether that be an entry point pair of sunglasses or a belt, it is the connoisseurship of the brand and the message it sends to each of these consumer groups. This is how they will make their purchasing decision.
The same thread with any market - clearly understand and 'talk' specifically to your consumer. So simple to say, not so easy to do. As real estate agents say, location, location, we say, relationship, relationship....
Who's behind the MO DOWN
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, www.moluxury.com.au