Surveys have released that Chinese consumers are more and more attracted by luxury goods. Moreover, the most famous luxury brands such as Louis Vuitton and Chanel penetrated the Chinese market to appeal to them. Nevertheless, Chinese customers noticed prices are higher than countries overseas. That’s why they tend to travel in order to purchase luxury goods.
Luxury products appeal to native’s purchasing
Therefore, home-grown luxury bands are developing. Then, with an upper middle-class in China, the wealthier Chinese need to find more authenticity and try to diversify their style in buying Chinese Haute-Couture. In addition, they want to expand their lifestyle abroad without being copied by Western culture.
Consequently, “Made in China” is becoming a competitor in the luxury worldwide market and trying to be made out among the largest brands. Actually, while some Chinese luxury brands successes, they have not reached the big brands level of the world yet. With prices more expensive and clothes of less quality, natives still tend to purchase abroad.
However, some Chinese luxury brands succeeded in making out and are still improving their expansion.
In 2013, statistics released a Chinese cosmetic market increasing in the Mainland.
Actually, LOREAL, although it is still the largest cosmetic brand in China, meets less and less success in the last few years. The big brand is being replaced by cosmetic local brands.
In fact, Chinese girls are more and more sensitive to the quality of their product, especially regarding their skincare. They always expect goods’ innovation in order to get on skin’s brightness aspect. Thus, they adapt ways they use to take care of their skin regarding seasons. That’s why home-grown cosmetic brands are more able to tailor their products compared to brands overseas.
The Herborist, a Chinese pharmaceutical brand, offers consumers, herb medicine products. The brand succeeded in expanding its activity all around the world since 2007. Indeed, biological products are sold with massage and acupuncture advice and some information about plants used in the cream. Moreover, the luxury brand opened a shop on Avenue de l’Opera in Paris, which is one of the most prestigious in the famous capital. The brand improved its concept, and now offers luxury and expensive perfume to consumers.
Fashion brands are changing!
Brand New China, as its name indicates, is a new luxury brand in China launched in Beijing surrounded by Chanel and Armani. Therefore, stores’ brands don’t look to be so prestigious. Indeed, the brand tries to be discreet in order to satisfy a new type of consumer. These rich Chinese need more authenticity and want to develop the Chinese touch in their trendy styles. They are not attracted by Louis Vuitton’s bags anymore which we could see everywhere today.
The Brand New China’s stores showcase printed silks, deconstructed dresses, futuristic shoes and handbags which look like Mondrian paintings. Thus brand’s success encourages other many startups to launch their brand on the fashion market thanks to the collaboration with international luxury brands.
More information: Brand New China
China and its three-star caviar
Nowadays, China is one of the largest caviar producers in the World. These luxury eggs attract more and more rich populations all around the world and are part of three-star menus in restaurants. Chinese caviar is exported in 70% of the foreign market.
The Wine Market is progressing in China
The most famous spirit makers such as Remy Cointreau, Moët & Chandon, or LVMH, try to spread their brands on the Chinese market thanks to collaborating with local wineries.
Indeed, in 2008, Chinese boutique wine won an award which increased the Chinese market awareness regarding the wine culture. Today, the Chinese are one of the most consumers of wine. The mix between Wine and coca-cola is part of the past now.
Grace Vineyard is a wine Chinese brand created in 1997 and which succeeded in interesting Chinese consumers. Then, we can find wine in luxury restaurants in Hong Kong.
The wine Chinese market is still improving especially because the wine culture is developing in China and provides quality wines.
An example of a wine Chinese startup: What wine experts think about the French Cellar Wine in China
You can also read:
- China Luxury Market Guide
- Tapping China’s luxury-goods market
- What Is Really Happening in China’s Luxury Market?
Article provided by Thomas from Market Research