Friday, 14 May 2010
‘Hold Off Being Bullish On China’s Luxury Market’ says an article in The Wall Street Journal, which is based on a report just released by KPMG on the Chinese wealthy consumer.
A key point of the article was that Hugh Devlin, a luxury branding consultant, said that China's luxury market will catch up with the West very fast, but is "still relatively immature." He also suggested that “Western brands that look to China as a dumping ground for last season's products will likely not be successful.”
Another interesting finding from the KPMG survey was that “three-quarters of respondents said the financial downturn had little impact on them, while almost half said they expect their spending on luxury goods to be unchanged or to go up." Great news, breath out... particularly as most of the recently released luxury first-quarter revenue and profit figures have maintained continuing positive growth in China.
However, we suppose the luxury brands should not put all their pave wontons into the wok at once… The successful brands are the recognised brands, generally with a heritage or those that have invested years ago in China. New brand entrants have a harder act to follow and need to be informed as to the consumer tastes and how they like to be talked to.
Image credit: luxuo.com
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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, www.moluxury.com.au