
Emotional Purchases in Luxury and Consumer Behaviour
Emotions are central to managing a luxury brand. In this post, we’re looking at all of the implications of your customer’s emotive side.
Home » Understanding Fashion and Luxury in China
CEO and Founder,
440 Industries
China is a fast-paced economy which has taken over the world of fashion and luxury over the last few decades. Many luxury brands, however, have struggled to understand the unique features of this market and the behavioural traits of the Chinese consumer. In this post, we’re going to analyse some of the elements that make China a country like no other.
Here’s a breakdown of the post’s content:
China has been able to become an engine of growth for many fashion firms, as it’s population is increasingly growing in both pro-capita income and sophistication. Companies wishing to enter this market, however, need to understand the Chinese practices of luxury consumption, while at the same time build a strong and fast-paced brand.
Entering the Chinese market is a challenge in itself as firms are required to:
An example of the last bullet point can be seen in the remarkable differences between Beijing, and Shanghai. In Beijing, a stronger attachment to heritage and tradition can be emphasized through exhibitions and cultural events, while in Shanghai, a more glamorous approach can be pursued through fashion shows and media exposure.
The drive to purchase luxury products is often associated with the desire to conform and the pursuit of status. This is common to most countries, but in China, the status component of luxury purchase is associated with in-your-face eye-catching items.
In this context, therefore, the status component pushes consumers to use luxury as a marker for social categories.
At the same time, China is growing its taste for sophistication, and consumers will need to be informed and educated about the more behind-the-scenes elements of luxury. This poses a marketing challenge, as customers may be confused about the ‘noise’ created in fashion communication, and consider streetwear brands like Adidas as a fully-fledged luxury brand.
This poses a particular challenge for Italian luxury brands too, as the Made in Italy country of origin effect draws its values and quality from the fashion pipeline as opposed to loud marketing campaigns.
Let’s see how we can approach this market through a strategy that takes into account its uniqueness.
After taking a first look into the Chinese market we can conclude that developing a brand in China is a very expensive endeavour. Firms will need to invest in boutiques, advertising, and talent while creating a culture of sophistication around luxury goods.
Most of all establishing a brand in China is a long-term goal, where consistency and perseverance are important values to bear in mind.
I am an Anglo-Italian business lecturer and consultant based in Florence, Italy. In 2017 I started 440 Industries, an education and training company focused on fashion, music, and technology. Our mission is to help students, entrepreneurs and managers in overcoming the challenges of starting, developing and scaling their business in the creative industries. When there's a will, there's a way!
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