The development of Chinese luxury brands in France

Résumé du document

Even though the emergence of Chinese luxury brand is considered a potential risk in the industry, the Walpole 2005 meeting entirely dedicated to this topic concluded that they would not enter the global market soon. In fact, they are still quite absent in France, where only Shanghai Tang and Qeelin have shyly found their small corners. How can Chinese luxury brands potentially reach the saturated French market?

First, we will focus on the difficulties for Chinese luxury brands to enter the French market. Then, we will study further the qualities of current Chinese luxury brands to better estimate their potential and finally, we will focus on the evolutions required for them to come in the French market.

First of all, people usually link luxury to the Occident, and more especially to France and Italy, which seem to have the monopoly in the sector. If we look at the top 15 of luxury brands in 2008, one is from the USA, one is from the United Kingdom, two are from Switzerland, five are French and six are Italians. These countries have had the monopoly of the luxury industry for years and luxury is not a market that evolves quickly at all.

One of the determinants of luxury we have seen in class was "outstanding brand image". Entering the market for any brand is a challenge. And in addition of not having a luxury Chinese brand renowned worldwide, China is even not considered as a country made to produce luxury.

Extraits

[...] Evolutions required have already beginned Luxury and creation have been bridled in China after the Cultural Revolution, and Chinese have now a lot to express and create. The political evolution in China has already occurred to allow luxury to develop. However, the politics of the country still need to be more open as there are still censure and restrictions. From a marketing point of view, working on Chinese products' image in general is the key change that needs to be done, and we have seen previously that it is something brands have already started to work on. [...]

[...] Qualities of Chinese luxury brands to enter the French market Strong tradition and ancient History This is among the determinants of luxury, and it is totally representing China as much as the other countries currently leading the luxury market. Cultural roots in China are even more present than in Occident. Actually, the traditional knowledge is a real strength to produce luxury brands. The new Chinese brands, as Shanghai Tang for example, work on giving a new reputation to the “made in China” in order to link it with the Chinese roots, the great know-how appreciated in handcrafted products and the use of noble materials. [...]

[...] La nouvelle marque chinoise de luxe. Retrieved July 2011 from Influencia.net: http://www.influencia.net/fr/actualites1/nouvelle-marque-chinoise- luxe,31,1075.html Quelles sont les stratégies des grands groupes pour faire un made in China de luxe ? (2011, May 4). Retrieved July 2011 from Luxe 2.0 : http://luxe20.wordpress.com/category/chine/ Vulser, N. (2010, October 22). Les marques de luxe chinoises affichent leurs ambitions internationales. [...]

[...] Technology is booming in the country and linked to the ancestral know-how, it can really help the luxury industry. On a social point of view, Chinese consumers are on their way of changing their way of consuming luxury products, leaving slightly their attraction towards Occident to go back to their local products. This evolution has to occur before Chinese brands can pretend entering the international market, if we believe they must conquer their local market first. Focusing on their local market before growing internationally seems to be the right decision as the luxury market in China is growing fast, whereas it is stable in France, and consumption of Chinese consumer should evolve back to their roots instead of being only focused on occidental brands like now. [...]

[...] How can Chinese luxury brands potentially reach the saturated French market? First, we will focus on the difficulties for Chinese luxury brands to enter the French market. Then, we will study further the qualities of current Chinese luxury brands to better estimate their potential and finally, we will focus on the evolutions required for them to come in the French market. Difficulties for Chinese luxury brands to enter the French market Luxury products are linked to few countries for decades First of all, people usually link luxury to the Occident, and more especially to France and Italy, which seem to have the monopoly in the sector. [...]