subject: IS China the New Dubai [print this page] IS China the New Dubai IS China the New Dubai
Is China the New Dubai.
Actually China is the quickest expanding marketplace in the world. It is just a question of time (exactly it's a question of next five years) when it become also the largest market for luxurious goods in the world. At present it is in the second position, just right after Japan.
Under the name of luxury merchandise we understand products not so essential but extremely desirable, ownership of which gives a feeling of convenience and indulgence. Most of them belong to one of these sectors: fashion, accessories, footwear, perfume, cosmetics, jewellery and lingerie.
The recent twenty-first Century Deluxe 2009 Report successfully explains what sorts of items are most wanted in China. For all the high-end Italian brands it appears to be an opportunity not to be overlooked. Until lately the purchases were produced with little awareness - right now situation is entirely different. Wealthy Chinese realize precisely what they would like and what they need. That's precisely why several fashion houses are seeking to start additional boutiques in the country of the Rising Sun. But luxury is not only fashion and accessories - it's basically a life style.
Here are the brands preferred by the new prosperous Chinese:
The Chinese people adore and purchase luxury goods. Their appreciation for luxury is remarkable and the marketplace would seem to be soaring despite worldwide crisis. In 2009 they purchased a 1 / 4 of the luxurious products made in the world, at a overall of 9.4 billion USD. This number may possibly be even higher, if accounts were obtained of the buys done by the Chinese outside the country. It is undoubted chance for almost all those who prefer to commence their very own company in China. Business opportunities which offers the country widened to a brand new field.
This pattern has been observed by luxurious brands (primarily French and Italian) which usually make investments all the time in Chinese marketplace. Louis Vuitton, Bally, Gucci, Salvatore Ferragamo are one of the first brands that have started out their very first shops in the country of China.
Consumer Profile
Among those who drive the scenario on the higher-end merchandise are mainly young people of China that are twenty years younger than their counterparts in the United States and Japan. It is the new rich class that are probable consumers of the finest high quality goods. China has superb potential for this type of market, mainly due to the huge population residing in big cities. Not without significance is that the young shoppers want to emphasize their status. Being an important person of high social status impresses others. And exactly how to let other people know with whom you are dealing with? Of course with branded gizmos.
It's also worthy of note that young Chinese favored very rapidly "shopping and mall culture". In 2020, 7 of the 10 largest shopping malls in the globe will be located in China. But Chinese just like to go shopping abroad as well. Primarily because it is usually more cost-effective. That's why they often travel to go shopping in Europe's designer fashion shops. According to The Word Trade Organization about 100 million of Chinese will go abroad in 2020.
Which are the basic strategies for those who plan the opening of luxury brands in China? First of all, investment in promotion of new brands with sufficient incentive to the client is very important. For instance, organizing promotional, closed events inevitably with the presence of celebrities. 2nd of all, it is necessary to include local elements to the production of luxury brands, primarily by transferring the production facilities into China and by cooperation with local partners.
