Luxury Market of China
The luxury market of China is on its way to be the largest by 2025, Bain&Co states. While the spending on luxury goods has decreased globally. During the limits on international travel in 2020, the Chinese consumers spent on their domestic sources which led their luxury good’s market to grow.
Whilst the Chinese brands will be aiming to target domestic consumers in 2021, the European and American luxury brands are also attempting to target Chinese consumers and increase their sales in this market. However, when it comes to Chinese consumers there are many other aspects to consider. For international brands it is crucial to find the correct marketing messages for the Chinese market, where also they have to understand how to target the Chinese consumers.
Considering the growth in the Chinese domestic market and potential, international brands give importance to Chinese consumers to showcase their brands and sell their products. Especially when it comes to the Chinese New Year’s holiday, international luxury brands start celebrating the Chinese New Year’s by using the years zodiac sign and red colour in their designs.
In order to strengthen their position in the mind of Chinese consumers, international brands create new designs and strategies focusing on the Chinese Lunar Year. However, an important question is: Are they really doing enough to differentiate from their competitors? Since, they all are in the luxury market, using the same colours and the sign, how are they differentiating or are they really trying to be different?
Being aware of the great opportunity of the Chinese market, where luxury brands see the Chinese Lunar Year as a key and also Western consumers show interest to the designs, it is important if these brands ask themselves how they differentiated from their competitors. Differentiation will enable them to sustain their brand equity and gain competitive advantage which will lead to sell more.
Fashion is about what brands market to you; if they do not target you, you cannot be aware of it.
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