Tuesday, 28 September 2010

Brand Confusion in China 28/9/10

Great news for international luxury brands. A recent study has shown that Chinese consumers prefer imported brands to domestic brands. We’ve discussed in detail the increasing importance of the Chinese market to the luxury industry- they are fast becoming the world’s number one consumer of luxury goods. So much do the Chinese prefer international labels, that many Chinese brands are presenting themselves ambiguously, of non-specific origins, faux-foreign, if you will. Will they succeed in crowding out the international competition? We aren’t convinced….

It is interesting that whilst domestic brands want to seem international in China, international brands are working hard to localise- See Hermes and the recent launch of its new Shang Xia label. Much attention is being given to the discussion over which brands will survive as the fittest in the increasingly overcrowded, but extremely lucrative, Chinese market. We think the real issue is going to shift from domestic vs imported, to whether brands can fight themselves apart from the blurry mass of competition.

It is important for brands to remember that identity is everything, but identity does not exist in a vacuum. Clever marketing involves adapting with your market. If the Chinese market demands an international, world-renowned, elegant but youthful, sophisticated but accessible, showy but modest, traditional but edgy brand in line with domestic taste and demonstrating good CSR…. Then that, it seems, is what they shall have. Too confusing? Hermes has it all sorted. Launching an international brand off the back of a global fashion powerhouse, all the while intertwining it with Chinese history and culture? Pure genius. We can’t wait to watch Shang Xia blossom.

Image credit:edition.cnn.com

Follow MO Luxury's Facebook page for more luxury news...

No comments:

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