Outlook for China Luxury

China are going up. For some that means a stop at the local fast food restaurant is affordable, for others, it has created a pension for brand names, expensive cars and glitzy jewelry.

McKinsey, a management consultancy, recently reported it expects China will account for 20 percent of the world's luxury goods in just four years. By then, it says, the luxury market could be worth 27 billion dollars.

Rapid increases in wealth, and shifting social mores that sanction the display of that wealth, are driving a growing infatuation for luxury goods among Chinese consumers.”

“Access to an explosion of information on the Internet, an increasing penchant for overseas travel, and first-hand experience purchasing and consuming luxury goods are contributing to a substantial rise in sophistication among luxury consumers in China. Contrary to popular belief, a growing number of Chinese luxury consumers are exhibiting a noticeable trend away from overt displays of wealth, and towards more understated forms of luxury consumption.”

“Rapid urbanization and growing wealth outside of China’s largest cities is driving the emergence of several new geographic markets with sizeable pools of luxury goods consumers. Over the next 5 years, [McKinsey] expects that the number of such cities will double from 30-60.

Ushering into 2011, China, serving as a niche market, is more than just prosperity. It is believed that China’s luxury market has transformed from ‘land-rush’ to ‘ROI focus’. It is urgent for key market players to have in-depth knowledge of ‘China’s rule’. How to cultivate specific brandculture catering to local consumers? How to efficiently build brand image and grant to consumers? What is the ideal retailing solution for variant consumers? How to do ideal CRM in a niche market? It is certain that luxury consumption in China is more than purchasing but purchasing culture, spirit, life sytle of luxury brands.

Core luxury buyers: Affluent households that spend 12 to 20% of their income on luxury goods per year ($22,000 to $66,000).

Luxury role models: Young and fashionable, most are self-employed or corporate executives living in Beijing or Shanghai. They buy to indulge themselves and seek to feel unique rather than show off their wealth.

Fashion fanatics: Middle class, typically in junior to mid-level positions; includes some housewives. They spend a disproportionate amount of income on luxury, and have a stronger “enjoy now” mindset, willing to buy on credit. They also exert a strong influence on other consumers, sharing their purchases and opinions in social circles and online.

Middle-class aspirants: Middle class living in Tier 2/3 cities. They are infrequent buyers of luxury products. Purchasing luxury goods makes them feel successful and fulfills aspirations of belonging in a higher social circle. They are also less knowledgeable about luxury brands and thus are more cautious spenders.

Dutch designer inspired by gory world of the trenches

During haute couture week in Paris, the most extravagant dresses on earth are unveiled amidst a rarefied atmosphere of gilt chairs and scented air.


However, as the first show of the spring/summer 2010 couture collections demonstrated yesterday, there's more to made-to-measure fashion than Cinderella ballgowns. The Dutch designer Josephus Thimister's creations were inspired by the "bloodshed and opulence" of 1915, and featured jackets, tank tops and trousers evoking Russian army uniforms and splattered with fake blood.

Past inspirations for other designer's couture shows have included Vermeer and organ music, but Thimister, 47, whose grandmother was a White Russian princess, told AFP that he wanted to express the fact that "it's a tough world we live in," and "even in ugly, rough and tough pieces you can find a kind of poetry". His collection, which was a mix of couture and ready-to-wear pieces for men and women, featured variations on long officer's coats from WW1, slim jodhpurs and evening dresses in red and khaki or beaded finishes.

The show marks a fashion comeback for Thimister, who has been invited to show as a guest member of the Chambre Syndicale, the French body that controls which brands can use the legally protected label of haute couture. After working as the creative director of the esteemed fashion house Balenciaga from 1991 to 1997, Thimister launched his eponymous ready-to-wear collection in 1997. In his late Nineties heyday he dressed Madonna and showed during the couture schedule in 1998, but was forced to close his label due to lack of investment.

However, rich couture clients who want something more traditionally glamorous might want to wait until later in the week before flexing their Coutts cards. Today will see Christian Dior, one of the grandest and most quintessentially Parisian houses on the couture calendar, unveiling its latest collection by the British-born designer John Galliano, followed by Giorgio Armani's Privé line. Other big names later in the week will include Chanel, designed by Karl Lagerfeld, Givenchy, Jean-Paul Gaultier and Valentino. A couture dress requires several fittings, take 800 hours to make and costs anywhere between tens and hundreds of thousands of pounds.

Sadly, Christian Lacroix, the couturier famed for his richly coloured, flamboyant designs, is no longer showing at couture week after being declared bankrupt and reduced to a licensing operation last year.

The number of fashion houses showing their collections as part of the event has dwindled from around 100 in 1945 to just 11 official couture members. However ready to wear labels are showing their pre-collections during the event, and the Chambre Syndicale has invited jewellers including Chanel, Dior and Boucheron to present their fantastic designs on Thursday as part of a day dedicated to their craft. Couture's high-rolling clients might find that their exclusive Parisian shopping spree just became a whole lot more expensive.

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Source:ndependent.co.uk/