...leur temps. Madame Fontaine Christelle, store manager chez Sergio Rossi au Bon Marché, a toute mon affection pour sa gentillesse et sa compréhension. Enfin, j’adresse mes plus sincères remerciements au jury qui me fait l’honneur de lire mon mémoire. Merci à toutes et à tous. C.V Kuan ZHANG | | | 99 rue de Charenton, 75012 Paris | | | +33(0)7 62 94 82 00 | Née le 19/01/1988 | | @ rechelbaby.zhang@gmail.com | Nationalité: CHINOISE | | FORMATION & DIPLOMES 2012- 2013 Institut Supérieur de Marketing du Luxe – Sup de Luxe Paris * Préparation du MBA spécialisé « Luxury Brand Marketing and International Management» * Mémoire : « Le marché du prêt-à-porter de luxe pour enfants en Chine, son potentiel, ses spécificités» 2011-2012...
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...Case 2-1 BMW Taps the Emerging Chinese Luxury market 1a) Human beings have a tendency to demand more luxury products when their income increases. As the text indicates, income of Chinese people has risen over the last few years so they start to demand more luxury goods. With their higher income also the more traditional collectivist values disappeared. 1b) Chinese people believe that the countries in Northern-Europe are symbols of luxury and with their recent rise in income they are starting to demand the same products that are available in Europe. Another reason is the recent change of position of the Chinese government, they used to have a collectivist point of view but in the last few years they have opened up their markets and became more Western orientated. With opening their markets more European products became available to the Chinese people. It also is a legal requirement for European companies to set up joint ventures with Chinese companies, European companies most likely choose the best rated Chinese companies what gives the Chinese people the idea that their products are of high quality. 5) Every international orientated company customizes their products for different countries and cultures. Every culture has its own preferences and demands for products and it would be smart for companies to adapt to these preferences. As written in the text, Chinese people demand more limo-like features, preferences per region differ and they are more focused on hybrid vehicles...
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...tariffs on overseas purchase of Chinese consumers Introduction Currently, Chinese consumers have become the largest nationality in terms of luxury spending worldwide. However the biggest problem in the Chinese luxury market is that Chinese consumers make most of their purchases overseas. Bain & Company's China luxury market study (2014) demonstrates that Chinese consumers contribute to more than one third of global consumption of luxury goods, which is nearly 380 billion RMB, but only 30% of consumption, which was contributed by Chinese consumers, is done in Mainland China, and the rest is from overseas purchases. Admittedly, consumption of the luxury products is beneficial for economy, but overseas purchase is an issue that has negative impact on economic development of China due to capital outflow. World Tourism Cities Federation (2014) shows that 44% of the Chinese tourists travel abroad for shopping. The huge price gap between Mainland China and some other countries is the most important reason that result in overseas purchase. Therefore, there is a debate about whether or not to cut down tariffs of the luxury products to solve this problem. Although cutting down tariffs of the luxury goods seems to be an effective way to attract Chinese consumers to make their purchases domestically, in this case, cutting down the tariffs of the luxury products is useless, because reducing import duties has little effect on the price of domestic luxury products. Instead, it is the...
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...of Textiles 2012-06-01 Report no: 2012. 13. 21 Luxury Consumer behaviour Suvi Lukkarinen & Xing Wei - A Comparative Case Study of Emerging Luxury Markets in China and Finland Visiting adress: Bryggaregatan 17 Postal adress: 501 90 Borås Website: www.textilhogskolan.se Title: Luxury Consumer Behaviour -A Comparative Case Study of Emerging Luxury Markets in China and Finland. Publication year: 2012 Authors: Lukkarinen, Suvi and Wei, Xing Supervisor: Anita Radon Abstract The study on luxury consumers is always connected to their drives behind consumption. Why people buy luxury products is an interesting question. This thesis investigates influencing forces behind luxury consumer behavior, in a comparative case study on Chinese and Finnish consumers. Luxury consumption is not a new phenomenon, but in some countries, like China and Finland, the luxury market is still growing since many brands are newly entering these markets. At the same time, new generations have become luxury consumers so these markets are quickly changing. Researches have been made on luxury consumer behaviour in China and Finland. However, there is a lack of updated information available about this subject, especially about Finnish luxury consumers. Furthermore, the driving forces behind the luxury consumption are not the same in different countries. In a competitive industry like luxury fashion, the marketing tactics have to be adapted to specific market conditions in order to succeed. The purpose of this...
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...Tang: The First Global Chinese Luxury Brand?” case 1. Introduction According to the case “Shanghai Tang: The First Global Chinese Luxury Brand?”, Shanghai Tang was struggling for more than 18 years to be the first global Chinese luxury brand, but unfortunately, until today, Mr. David Tang, the founder of this brand, still has to face a lot of problems: international brand awareness, costumer approval, operation & marketing strategies, relentless competitions, intercultural communication and multicultural integration, etc. It may be on the right track, maybe not. Is Mr. David Tang a pioneer? Or is he just a dreamer? In this analysis report, I will separate all these arguments into four parts: the company’s activities and current development; comparison of competitors’ strategies and tactics; intercultural issues and costumer behaviour in the luxury industry, especially Chinese market; recommendations and alternative solutions for Shanghai Tang’s future strategies. In this report, I will focus on the two most important factors: “inter Culture” and “luxury”, which will impact on the future strategies of Shanghai Tang, and I will defend my standpoints by analyzing the environment of luxury industry and cultural context in China. 2. Shanghai Tang’s current development and business situation Since 1995, the Swiss luxury company Financiere Richem SA (Richemont) became the main shareholder of Shanghai Tang, Tang’s company had a deep European Luxury background, which could...
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.............................................................................. 3 THE CHINESE MARKET .................................................................................... 4 OBJECTIVES ...................................................................................................... 4 TARGET MARKET .............................................................................................. 5 MARKET RESEARCH ......................................................................................... 5 ENTRY STRATEGY ............................................................................................ 6 PRICE STRATEGY ............................................................................................. 7 PRODUCT STRATEGY....................................................................................... 8 PROMOTION STRATEGY .................................................................................. 8 DISTRIBUTION STRATEGY ............................................................................. 10 CONCLUSION .................................................................................................. 11 APPENDIX ........................................................................................................ 13 OROTON page 3 INTRODUCTION This report will outline a marketing plan for the Australian brand Oroton for entry to the Chinese marketplace. A review of the...
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...Development Plan for Blanc de Chine To: Lisa Liu, Vice CEO, Blanc de Chine Prepared by: Xiaoxi Zeng Submitted: 9 December 2014 Subject: Recommended strategy to for Blanc de Chine to enhance competitiveness Executive Summary: Luxury brand is regarded as the highest level of prestigious brand. Researchers underscore its intangible value and psychological value, for example: conspicuous value, society value, quality value and uniqueness value. Fashion always associates and integrates the past and the future. Blanc de Chine devoted itself into translating the past Chinese cultural value into modern fashion. Making a comparison among famous luxury brands, we can conclude that even though those companies use different adverting methods, they all try to broadcast their brand culture and concept. Their advertising objectives is in consistent with the researchers’ study. Therefore, the company can make a good use of its Chinese culture background to gain loyal customers. This paper provides with three detailed recommendations: a, culture exploring; b, establishing culture display platform; c, event advertising. Blanc de Chine should make full use of their products’ cultural value and advertise their concept by appropriate methods to gain loyal customer and enhance competitiveness. Table of Contents: I. Introduction and Background.........................................
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...the overall market for luxury goods purchased by Chinese customers. There are several characteristics of the Chinese luxury consumer that can be viewed as broad-based, general features of the market. Once these features have been outlined to provide a context for the market in which Shanghai Tang operates, attention can then be turned to the particular customer segment that Shanghai Tang targets. The overall Chinese luxury market. One of the most salient broad-based features of the Chinese luxury customer is that the level of knowledge regarding luxury brands is not as well-developed as it is among most Western luxury customers. This has important ramifications for the China luxury market in general, because lower levels of differentiation between brands in the mind of the Chinese customer results in a reliance on other more overt cues to establish perceptions of prestige. For example, Joanne Ooi comments on branding in China and notes that “You must be expensive, prestigious and international to seduce the Chinese consumer.”[1] Furthermore, according to an Ernst and Young report cited by the case, Chinese customers are “more conspicuous customers who took pride in sporting international labels, which they considered a sign of success and wealth.”[2] Thus, in the Chinese luxury market, price, prestige, and international brand recognition are generally preconditions for the success of a luxury brand. Another unique characteristic that defines the Chinese luxury market is the tension...
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...to longer term. So the entire economic environment is not so optimistic, all different industries are being influenced more or less. Comparatively speaking, in fashion marketing, the power of purchasing is relatively reduced since Finance Crisis all over the world. According to the statistics, the Consumer Confidence Index (CCI) has been kept relatively stable in the low level since finance crisis, especially in European countries and America, mainly in the developed countries (Isabella 2010). At same time, it shows the consumers expect less for the future; they spend most of their money on the necessities, reducing the budget on the luxury products and expenditure on the entertainment. As the above mentioned, as the income of whole family reduced rapidly in lots of developed countries, which influenced the behavior of purchasing luxury goods, or even stop buying it. But in China, it is completely...
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...the consumption of luxury goods, and therefore the growth of the luxury market, also increased, and increased to the point that China is now among the top nationalities in terms of total sales of luxury goods. In recent years, as a consequence of the increasing of personal wealth, the consumption of luxury goods in Mainland China has been growing, until last year, 2014, when the sales decreased to 15 billion euros (negative growth you -2%) due to three main reasons: the first one the slowing of Chinese economy; the second the tendency of Chinese people to purchase products either abroad or via cross border online platforms since the taxes on the products are lower than in their country; and the last one the government's anti-corruption drive (started two years earlier, in 2012) Regarding this point it is interesting to notice how this particular fact mainly affected the men watches sector, which recorded negative yoy growth rates of -13% (gift giving concept: probably the most popular gift for men). BUT... Nevertheless the small decrease in consumption, the luxury market is still going strong, and the purchase of luxury goods is in the hands of two big groups: wealthy individuals (being them millionaires/billionaires) and upper middle-class individuals (or white-collar workers). The number of both these two categories is growing year by year and economists predicted that it will reach extremely high levels by 2022. FEATURES OF CHINESE LUXURY MARKET So now the...
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...Overconsumption of Luxury Items in China Introduction Chinese luxury goods market has grown dramatically over the past decades. According to a report released by Bain & Company (2012), currently, Chinese consumers occupy about 50% of the luxury purchases in Asia, and nearly 33% of those in Europe. Globally, one in four purchases of individual luxury goods comes from Chinese customers. Therefore, overconsumption of luxury items in China is a problem which should be given attention to. This problem will lead to a series of negative impacts on economy, society and environment, such as bustling counterfeit markets, distorted values, and damaged environment which could present significant challenges for China even all over the world. The purchase of luxury goods by Chinese consumers may be motivated by different factors from the aspects of economy, society and culture. This report will identify the impacts, analyze the causes, and consider possible solutions of this problem. Impacts Three aspects could be affected by the overconsumption of luxury items in China: economy, society and environment. To begin with, the overconsumption of luxury items would result in thriving counterfeit markets and threatened domestic businesses. Due to the demand for luxury goods, a bustling counterfeit market has been established, with counterfeiters offering replicas of luxuries at much cheaper prices than the authentic counterparts. For a country as a whole, this counterfeit market has two main...
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...Introduction: Introducing a new product or service into a foreign market is a significant business achievement. As a matter of fact, there are a few things that companies have to face when it comes to globalization. This essay will deal with luxury products, and more particularly with high-end jewellery from the French brand Cartier. These products will be launched within the Chinese market, as it is close to become the largest luxury market in the world. In order to make this project as successful as possible, this essay will be divided into two parts. On the one hand, we will be analysing the marketing environment of the Chinese market by identifying major market opportunities. Also, the selection of a suitable target market for Cartier jewellery products will be made, and we will recommend which aspects of the product’s international marketing mix strategy would require adaptation. On the other hand, we will critically examine the notions of standardization and adaptation of the international marketing mix. 1. Market selection & Cultural Research and Impact on International Marketing Mix Strategy a. Market opportunities: In order to justify the choice of the Chinese market for Cartier jewellery products, 4 market opportunities will be identified. The first three ones will be dealing with socio/cultural aspects whereas the last one will be rather based on an economic aspect. With more than 1.3 billion of people, China has about 18 thousand billionaires, 440 thousand...
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...[pic] A2 Business Studies Pre-Release Research Task ‘Development in Emerging Markets: China’ Learner Name: _____________________________ Preparing for A2 Business The Unit 3 examination Strategies for success • 25% of A level • 1 hour 45 minutes exam • 80 marks • The exam is case study based and comprises one 10 mark calculation question, two 18 mark evaluation questions and one 34 mark report. The Unit 4 examination The Business Environment and Managing Change • 25% of A level • 1 hour 45 minutes exam • 80 marks • Section A: Pre-release research tasks leading to a 40 mark essay • Section B: Choice of 3 essays, one must be chosen for 40 marks • This unit is synoptic – this means that it pulls together all the material from the entire AS and A2 specification. There are two key additional elements of preparation for this paper: Complete the research task The research task is designed to enable you to investigate in detail a small part of the Unit 4 specification. The research brief will give you precise guidance on the tasks to complete. Do not make too much of this task and extend your research beyond what is asked. Do, however, relate your research to a variety of large businesses producing goods and services and operating in different markets. Read widely about business You should read newspapers, magazines, and books, watch television and surf the internet for news...
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...• Status of the luxury market today: According to the latest survey of The World Association of Luxury goods, Chinese luxury consumption amount in January this year has up from $8.6 billion to $9.4 billion, accounting for 27.5% of the world. It is expected to 2015, China's luxury consumption will account for 32% of the global market, becoming the world's largest luxury consumer than Japan. With China's luxury consumption ability to continuously release, this brand in China is expected to have obviously large sales growth space. According to Viscoelasticstatistics, large luxury product groups coming to settle in Beijing, Shanghai and Hong Kong. The numbers of shops are now beyond that of Italian and equals to that of London. In previous years, in Shanghai and Beijing, Tod 's, LV, Bottega Veneta, Cartier, Salvatore Ferragamo, Zegna and etc. brands flooded in just a few months. At present, the domestic market possesses nearly two thirds of the luxury brands, estimate in 2013 years or earlier, people can find all luxury brands in domestic market. • The status of LV’s market in China and its strategy: There are about 100 sales outlets of LV watch and jewelry in domestic now. LV bag has opened 39 stores in China now and the sale amount is accounted for nearly 40% of the whole sale amount of LV in the world, which is beyond the Europe,the birthplace of the 19% market share and the 23% market share of USA. A Chinese cinema's manager said jokingly: “If a cinema can earn 20 million...
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... Weakness, Opportunities, Threat (SWOT) Analysis 6 Section B for question 2 4 Product/Market Expansion Grid 5 Product/Market Expansion Grid Cont’ 6 Section C for question 3 4 Demographic characteristics 5 Perceptual Map 5 Integrated Marketing Communication (IMC) 6 Conclusion 4 References 4 Introduction Executive Summary The initial part of the report compares Shanghai Tang with 2 others luxury ready-to-wear brands in the western market, namely Chanel and Dior. It discusses the demographic and cultural environmental forces faced by Shanghai Tang when competing with other luxury ready-to-wear brand in the western market followed by a SWOT (Strengths Weaknesses Opportunities and Threats) analysis to identify both the internal environment (strengths and weaknesses) and external environment (opportunities and threats) that Shanghai Tang is facing. Through the SWOT analysis, we came up with a recommendation to either defend or expand Shanghai Tang’s market position. Secondly, a product expansion grid was used to discuss the possible strategies Shanghai Tang can adopt for expansion. The product expansion grid was also used to determine business growth opportunities. It consists of four quadrants, each representing one strategy. The four strategies are Market Penetration Strategy, Market Development Strategy, Product Development Strategy and Diversification. The last section of...
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