The Key To Success For Luxury Brands In China
A man walks past a boutique of the Louis Vuitton luxury goods company in Beijing, China, November 30, 2016. REUTERS/Thomas Peter
I don’t normally write about this specific topic: luxury brands in China. But when you’re talking about the amount of money at play here, that caused me to sit up and take notice.
Earlier this year Bain & Co. released a report which showed that luxury items such as designer handbags and fine jewelry will see an increase of 2-4% to as much as $290 billion in 2017 alone. Now that figure represents China and Europe but pulling back the curtain on the report shows that the increase is predominantly coming from “the growing appetite for luxury indulgence among the Chinese consumers.”
There are brands such as Alibaba, who recently launched the Luxury Pavilion, an invite-only platform strictly for top of the line brands that are specific to their T-mall business-to-the-consumer venue ? that are fully aware of this expected increase. But there might be trouble ahead for luxury brand e-marketing. Forecasters predict that the global market for luxuries, while still strong, is starting to plateau out ? with an annual growth rate averaging around just 3% . That?s a lot slower than in the previous halcyon days of luxury e-commerce in China. One of the big problems is that the top luxury brands have traditionally been kept back to a modest quarter of all brands being offered online, while everyday consumer products have been ...
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