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fashion

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    @Hermes_Paris : Morphing into a #megabrand | via Luca Solca Exane BNP

    JANUARY 2017 | LUCA SOLCA | EXANE BNP

    HERMES INTERNATIONAL: HERMES MORPHING INTO A MEGA- BRAND

    [TO CONTACT US]

    The Hermès paradigm (as we saw it)
    Over time, Hermès has built a most enviable position in the luxury goods industry (The Epitome of Modern Luxury). This - in our view - was built on four pillars: 1) frustrating demand for its iconic leather models; 2) using adjacent product categories to provide accessible entry price points (Entry Price Points and the real Nature of Luxury Goods), while keeping the core leather products expensive and out of reach (Category Segregation); 3) sticking to organic growth and avoiding acquisitions; and 4) maximising retail space productivity and ROIC.

    Hermès is changing ...
    Hermès seems to be moving away from its tried-and-tested formula of frustrating demand for its iconic products. It has, in fact, increased leather goods manufacturing capacity over the past few years. The principle of 'category segregation' also seems to have been discarded, as consumers can buy Hermès handbags at significantly lower prices and just north of EUR1,000. These are not Birkin or Kelly, obviously, but they are still Hermès handbags: Evelyne, Garden Party, Picotin, etc.

    ... and morphing into a Mega-Brand
    We think that 'demand frustration' and 'category segregation' were the two traits that set Hermès apart from mega-brand peers. With these gone, the 'genetic difference' between Hermès and - say - Louis Vuitton is more difficult to identify. Hermès is still more desirable in the eyes of some consumer nationalities (Measuring Brand Exclusivity and Desirability - China), but this seems more a difference in 'intensity' than in 'nature' as other consumers seem to have the opposite perception (Measuring Brand Exclusivity and Desirability - France).

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    Behind Hong Kong’s Failing Appeal as a Luxury Destination | #HK #luxury

    FROM OBSERVER.COM | BY JEENA SHARMA | JANUARY, 03 2017

    Chinese shoppers are no longer blinded by bling, visitors can get better deals elsewhere

    The latest dent in Hong Kong’s flailing retail market came with U.S. clothing brand Abercrombie & Fitch calling time on its flagship store two years before the end of its lease.

    The city, which has witnessed a consistent luxury slump since 2013, saw many major brands such as Ralph Lauren, Forever 21, Prada and Paul Smith pull out flagships earlier this year. Italian luxury clothing and accessories label Tonio Lamborghini also shut more than 10 of its stores and in-store counters in the city. Official Hong Kong government data shows a consistent decline in retail sales since 2013 through 2016, when sales reached their lowest point. While Abercrombie & Fitch, which is battling with its own financial instability, blames exorbitant rents (HK$7 million ($0.9 million in monthly rent) as the prime reason, for other brands the picture is less clear.

    With the amount of Mainland Chinese shoppers the city was host to, Hong Kong was once hailed as the ‘Great Mall of China.’  However, Chinese shopping tourism hit a major lull post the anti-corruption crackdown initiated by President Xi Jinping in 2012. The initiative, intended to eliminate corruption of  high profile Chinese government officials had the biggest negative impact on the retail market, particularly in luxury. The high exchange value of the Hong Kong dollar further contributed to the weakening of  the city’s position as a retail destination, as the territory price advantage gradually diminished for Chinese tourists.

    “Shopping in Hong Kong is no longer a bargain for Chinese tourists. The traveling Chinese consumer is now opting for alternative destinations like South Korea, Japan, or Greece. These are places with a little bit more character, a distinct point of view, or places that offer experiences beyond shopping,”  Saisangeeth Daswani, Advisory Strategist at innovation and trend research corporation, Stylus, told Observer.com.

    The evolving tastes and aesthetic of the Chinese consumer seem to be another important factor responsible for the retail shift. While Hong Kong offers some of the best-known designer stores in the world, it fails to attract the increasingly sophisticated and well-informed shoppers from abroad. Both domestic and foreign consumers in the city have become smarter about where to find products for the lowest prices and demand more in return for their money.

    “What’s key for luxury brands in Hong Kong is to consider the consumer’s changing mindset and offer more immersive, unconventional and discovery-based experiences,” said Daswani. “The luxury brands have been too focused on products, prices and sales. Consumers want more from their purchases than simply getting their hands on the latest accessory, they want an experience, a story to tell.”  Studies indicate that Chinese consumers now look to distinguish their choices from the most obvious mainstream brands and regular edition products. Flashy logos and shiny watches just don’t hold as much appeal as they did anymore.

    “The Asian consumer’s style sense is evolving, and their fashion purchasing behavior is becoming more European. The appeal of the preppy look is diminishing and people don’t see the need to buy luxury when attractive premium brands offer similar looks,” agreed Jaana Jätyri, CEO at trend forecasting agency, Trendstop.

    louis vuitton, fashion, luxury, hong-kong

    Since most of the luxury category brands are only accessible to the Chinese shopper who is able to travel beyond China, many have opted to simply shop online, much like the American consumer.

    Prada, which also closed much of its primary stores in the city, indicated the brand will now cater to the Chinese market through e-commerce. “The Hong Kong closure is part of a worldwide, strategic realignment of brand retail channels. Over the next two years, Prada will strengthen its own e-commerce platform, giving priority to China, Hong Kong and Singapore with the objective of achieving global reach,” an official spokesperson for the company told the Observer.

    prada, fashion, luxury, hong-kong

    While this could eventually strengthen a new shopping model for the country, unfortunately it means more woes for Hong Kong’s traditional retail market. However, Daswani believes all hope is not lost. As retail rents in Hong Kong continue to fall as a result of high end departures, mid-market, ‘contemporary fashion’ and affordable luxury brands are jumping in. Moreover, analysts predict that if the exchange values of the HK dollar stabilize in 2017 leading into increased consumer confidence, retail sales may slowly recover during 2018 in Hong Kong, albeit in a different kind of retail store.

    Whether the city will regain its status as a hot shopping heaven, only time will tell. As of now, an overall uncertainty clouds the Hong Kong luxury market, and it’s up to the retailers to adapt to the new consumer interests and adjust to this broadening notion of luxury. Elsewhere, shoppers are experiencing a rise in customization offers, one offs, local exclusive pieces, limited editions and in-store exclusive events, Hong Kong retailers may need to catch up.

    [LIRE L'ARTICLE EN ENTIER]

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    In 2017’s, #luxury brands will have to work a lot harder to sell their pricey goods | @adetem @

    FROM QUARTZ MEDIA LLC | WRITTEN BY MARC BAIN | 24 JANUARY, 04 2017

    Last year was a bad one for many companies selling expensive fashion, handbags, and jewelry. For the first time since the financial crisis of 2008, the global market for personal luxury goods failed to grow, stalling at €249 billion (about $258 billion).

    luxury, china, fashion, growth, bnp, exanebnp

    The good news is that 2017 should see a return to growth, according to a Dec. 28 report on the global luxury market by management consulting firm Bain & Company, only it won’t look anything like the boom years from 2010 to 2015, when global sales of such goods jumped 45%, fueled by Chinese consumers with high-end appetites. The slowing of China’s economy and its government’s ongoing crackdown on corruption, paired with turmoil in the US and Europe from Brexit, terrorism, and the US presidential election, have created a “new normal” of low single-digit growth and intense competition. The years ahead will produce “clear winners and losers,” Bain says, determined by which brands can read the field and respond best.

    China is at the center of this shift. Today Chinese shoppers account for 30% of all sales of personal luxury goods. While Bain foresees the Chinese market improving again after contracting slightly in 2016, it isn’t likely to return to its former rate of expansion, which insulated brands’ bottom lines from other problems. “We expect around 30 million new customers in the next five years coming from the Chinese middle class,” Claudia D’Arpizio, a Bain partner and lead luxury analyst, told Quartz in an interview last year. “But this is nothing comparable to the past big waves of demographics entering [the market]. This new normality will mean mainly trying to grow organically in the same consumer base, being more innovative with product, more innovative with communication.”

    Exane BNP Paribas echoed the thought in a December research note to clients. “The peak of the largest nationality wave ever to benefit luxury goods is behind us,” the authors wrote. “Brands need a new paradigm, other than opening more stores in China and bumping up prices.”

    The period luxury is entering could see some of its slowest growth since it started opening up to a mass audience around 1994. That was the year, D’Arpizio noted, that “the jeweler of kings and queens,” Cartier, launched its first lower-priced line for mainstream consumers. Other brands followed in search of greater sales, and names “like Gucci, Prada, also Bulgari were really growing, doubling size every year, sometimes triple-digit growth rates, opening up to 60 stores every year and covering all the capitals across the globe,” she said.

    Around 2001 came another period of expansion when brands became global retailers, not just selling wholesale, amid a spate of acquisitions that would eventually create today’s giant luxury conglomerates, including LVMH and Kering (previously Gucci Group). By the time of the financial crisis, luxury had conquered much of the US, Europe, and Japan, and then China came along to offer more unfettered growth.

    There’s no new China, however, at least not now. The next big luxury market is likely Africa, particularly countries such as Congo, Angola, and South Africa. But D’Arpizio estimated this scenario won’t come about for seven to 10 years, meaning only moderate expansion for some time.

    “In the new normal, we expect a compound annual growth rate (CAGR) of 3% to 4% for the luxury goods market through 2020, to approximately €280 billion,” Bain’s report says. “That is significantly slower than the rapid expansion from the mid-1990s to the late 2000s.”

    Other characteristics of this new period include more shoppers making purchases at home. Last year, local purchases exceeded tourist purchases by five percentage points, the first time since 2001 that has happened.

    And digital sales will keep growing. Last year they accounted for 8% of the industry.

    [LIRE L'ARTICLE EN ENTIER] 

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    #Burberry added fuel to the conversation surrounding the "see-now, buy-now movement" | @buberry @adetem #luxury

    ARTICLE PARU DANS LE LUXURY DAILY | DECEMBER 2016 

    [LIRE L'ARTICLE EN ENTIER]

    Burberry's early adoption

    British fashion label Burberry came in behind Chanel [2016 LUXURY MARKETER OF THE YEAR],  placing as second runner's-up for its first-mover status.

    Burberry added fuel to the conversation surrounding the see-now, buy-now movement, announcing early in the year that it would be changing its runway show schedule. This move consolidated its presentations to two a year, showing men's and women's collections together (Burberry updates fashion calendar to meet global demand).

    The brand also took a different move when it enlisted Brooklyn Beckham to shoot a campaign, having the teenage son of David and Victoria Beckham capture the experience on Snapchat (Burberry targets younger market using Brooklyn Beckham, Snapchat).

    Burberry was became the first fashion label to create an Apple TV app, becoming the first brand to broadcast a fashion show on the platform (Burberry launches on Apple TV with menswear show live-stream. When launching the fragrance My Burberry Black, Burberry took advantage of a bevy of newer social media tools, such as Instagram Stories and a Snapchat filter, to create a mood around the scent.

    While unseated by Gucci in this year's L2 rankings, Burberry was positioned in second place, also showing Genius-level sill in digital.

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    #Chanel has made itself more relatable to consumers without sacrificing its prestige | @Chanel @adetem

    ARTICLE DU LUXURY DAILY | DECEMBRE 2016

    [LIRE L'ARTICLE DANS SA TOTALITE]

    First runner’s-up Chanel has made itself more relatable to consumers without sacrificing its prestige.

    The brand made moves to appeal to a younger audience, casting teens Lily-Rose Depp and Willow Smith in separate ad campaigns.

    With a continued focus on video content, Chanel introduced five new films in its “Inside Chanel” series. The brand also launched a new series of unscripted Beauty Talks, inviting personalities such as Gisele Bündchen and Keira Knightley to talk makeup and skincare with its global creative makeup and color designer Lucia Pica.

    Chanel, luxury, fashion, luxury daily

    Chanel’s social media efforts helped the brand top Brandwatch’s rankings of fashion companies, thanks to visibility and increased reach (Chanel, Lexus top social media performers in fashion, automotive fields). The same researcher also found it to be the most reputable brand on social media (Chanel most reputable brand despite low sentiment: report).

    The brand also got a nod in the beauty space, with an MBLM report finding it to be the most successful at creating intimacy and an emotional connection with followers (Chanel ranks at top of beauty industry’s brand intimacy chart: report).

    A key indicator of brand positioning and desirability, Chanel is one of the highest sellers on the secondhand luxury site The RealReal (Chanel, mega-brands dominate resale market as new sectors surge: report). Chanel was also one of the only brands to record growth in value in Millward Brown’s BrandZ report (Louis Vuitton, Hermès and Chanel only houses to record growth: report).

    Chanel, luxury, fashion, luxury daily

    Aside from its desirability as a brand to own, Chanel was named the most coveted place to work in a survey of millennials conducted by Women’s Wear Daily (www.luxurydaily.com/louis-vuitton-hermes-and-chanel-only-houses-to-record-growth-report/.

    Alongside digital efforts, Chanel courted younger clients with a backstage-themed pop-up. The brand also branched out into the conceptual, curating a daily content hub with i-D magazine (Chanel, i-D magazine advocate for female artistic talent on daily content hub).

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    Gucci is 2016 Luxury Marketer of the Year | @Gucci @adetem

    Italian fashion label Gucci is Luxury Daily’s 2016 Luxury Marketer of the Year for its revamped advertising image under the creative direction of Alessandro Michele.

    Gucci won over first runner’s-up Chanel and second runner’s-up Burberry. All three brands were able to adapt and connect with a new generation of consumers while not losing focus on their luxury positioning.

    The Luxury Marketer of the Year award was decided based on luxury marketing efforts with impeccable strategy, tactics, creative, executive and results. All candidates selected by the Luxury Daily editorial team and from reader nominations had to have appeared in Luxury Daily coverage this year. Judging was based purely on merit.

    Gucci made over

    2016 marked the first full year with Mr. Michele at the head of Kering-owned Gucci. Aside shifting the brand’s apparel and accessories design, he has made his mark on the brand’s marketing, replacing an overt sex appeal with a more romantic femininity.

    This included a new effort for Gucci Guilty starring Jared Leto that portrayed a subtle sexuality (Gucci’s visual representation of fragrance hopes to shatter society norms) and ensemble runway collection campaigns shot in destinations such as Berlin, Tokyo and Britain’s Chatsworth House.

    gucci, cruise campaign, chatsworth house, luxury, luxury daily

    Playing off motifs created by Mr. Michele, Gucci unveiled a series of artistic initiatives that deconstructed these themes. Its customizable Ace Sneaker was the subject of creative short films, while its codes became the basis for a multiplatform project that spanned a physical space in Tokyo and online mediums (Gucci makes room for reinterpreting brand codes).

    Allowing consumers to put their own spin on these new icons of the brand, Gucci also launched customization programs for select products.

    During 2016, Gucci opened new headquarters in Milan, centralizing a number of operations in a repurposed aeronautical factory. This Gucci Hub will serve as a location for fashion shows and acts as a physical representation of its changing aesthetic (Gucci takes nontraditional office approach for multipurpose Milan headquarters).

     

    [LIRE L'ARTICLE EN ENTIER DANS LUXURY DAILY]

     

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    How a new idea of #luxury helped @Coach correct course [#inclusivity #exclusivity #digitalluxury #fashion #strategy #imessages #Coachmoji]

    How a new idea of luxury helped Coach correct course

    By Hilary Milnes, 2016-10-10+, Glossy.co, digital luxury

    In a post-show statement, previous to the Spring 2017 runway show at the New York Fashion Week Vevers acknowledged that Coach was looking to appeal to the new luxury consumers. Coach finally embraced that the definition of luxury was changing.

    After facing for years real competition within the affordable luxury market, the brand drifted down-market and understood that it is time to take more control across online and in store channels. The key to Coach’s newfound relevance was a shift in mindset around the definition of luxury in a digital age.

    “The question had been around inclusivity versus exclusivity,” said Audier D’Alessandris. “Luxury was about selling a dream and being so exclusive, and it’s been fascinating to see the world around fashion changing. We have new philosophies now, and the balance between inclusivity and exclusivity is at the core of the future of luxury.”

    Coach reformatted its mobile strategy, launched Coachmoji and imessages, with the aim to create an immediate product discovery as a result of an internal change in terms of infrastructure. The brand was even among the first luxury brands to offer a live chat online.

    [READ THE ENTIRE ARTICLE]

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    'Expensive' and 'exclusive' go hand in hand in consumer perception...via @lucasolca #ExaneBnp [#promiseconsulting-blog.com]

    MEASURING EXCLUSIVITY AND DESIRABILITY IN THE US - SEPTEMBER 2016

    Our recent research on Brand Desirability and Exclusivity in the USA (Measuring Brand Exclusivity and Desirability - USA), conducted with Promise Consulting, showed a near perfect correlation (R2 = 92%) between brands that consumers perceive as 'expensive' and brands seen as 'exclusive'. No other identity trait we have explored correlates so well.

    [TELECHARGER LE SLIDE]

    En savoir plus sur l'étude : mailto to valerie.jourdan@promiseconsultinginc.com

    This joint study with Exane BNP can be presented to you during a meeting to be agreed with your teams. The full document is the subject of a subscription. You can also request the dates of the next cycle of conferences dedicated to presenting the results of this study. Three countries in the luxury fashion world were studied: France, China and the US.

    Cette étude menée conjointement avec Exane BNP peut vous être présentée en synthèse lors d'un rendez-vous à convenir avec vos équipes. Le document complet fait l'objet d'une commercialisation en souscription. Vous pouvez également demander les dates du prochain cycle de conférences consacrées à la présentation des résultats de cette étude. Trois pays dans l'univers de la Mode de luxe ont été étudiés : la France, la Chine et les US.

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    #Exclusivity & #Desirability US Barometer of #PromiseConsulting & #ExaneBNP reinforce positive ratings on both #LVMH and #Kering.

    FROM EXANE BNP & PROMISE CONSULTING - SEPTEMBER, 07, 2016

    Luca SOLCA
    Managing Director
    Sector Head Global Luxury Goods

    Rue du Rhône 80, 1204 Genève, Switzerland
    Tel: +44 203 4308503
    Mob: + 44 7881249464
    luca.solca@exanebnpparibas.com

    Luxury goods brand desirability in America shows domestic and aspirational bias
    We find a number of surprises and a few confirmations in the results of our extensive consumer investigation in America: 1) Americans like their local champions; 2) Americans seem more attracted by fashion brands; and 3) Our analysis confirms a strong accessible luxury bias among American consumers.

    Luxury brand exclusivity perception is also quirky
    Prada, Versace, Louis Vuitton, Gucci and Giorgio Armani lead the group - with Hermès coming in only 6th place. Louis Vuitton, Burberry, Prada and Versace look strong, as they boast higher desirability than purchase - a convergent indicator of exclusivity perception.

    We are adding 'brand identity' analysis to our desirability and exclusivity research
    Louis Vuitton and Gucci rank in the top 5 of all brand identity traits we have investigated, with the exception of 'elegance', in which Chanel and Prada lead.

    Investment conclusions
    Our analysis of brand desirability and exclusivity in America reminds us of how important mega-brands remain in this industry. Louis Vuitton stands out as the strongest brand by far, followed by Gucci, which seems to have lost some of the vigour of a few years back but is likely benefiting from its successful and thorough turnaround. These results reinforce our positive ratings on both LVMH and Kering.

    Ask for the full document : philippe.jourdan@promiseconsultinginc.com

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    Conference « Luxury & China » [06/30] Sharing the event’s most important moments [#promiseconsulting @adetem]

    [VIEW THE PICTURES ON FLICKR]

    luxury,china,promiseconsulting,fashion,jewellery

    Conference « Luxury and China: insights and perspectives for 2016 and beyond » [06/30] Sharing the event’s most important moments [#promiseconsulting @adetem]

    On Thursday, June 30, 2016, at the Café l’Adjugé in Paris, Promise Consulting hosted a conference on "Luxury and China: the challenges and perspectives for 2016 and beyond”.

    In total 40 people, professionals from top luxury brands, journalists and consultants in the world of luxury, fashion, beauty and tourism, participated in the breakfast conference initiated by Promise Consulting at the prestigious Parisian auctioneers Drouot from 8:30am to 10:30am.

    luxury,china,promiseconsulting,fashion,jewellery

    Continuing a series of lectures on trends and perspectives regarding the development of the world luxury market, Philippe Jourdan, founding partner and Chunyan Li, Senior Consultant and China specialist, combined their expertise and presented together a broad overview of the opportunities and challenges of the Chinese luxury market:

    - On the one hand, the cyclical factors were isolated from the structural ones to discern the growth opportunities in a certainly more "bumpy" economic context. Additionally, the conference outlined new and interesting opportunities for Western luxury brands.

    - On the other hand, the enriching insights of the specialist in Chinese culture took into account the emergence of new expectations, especially of those of younger generations, vs the ones of the luxury goods generations.

    THEY ATTENDED THE CONFERENCE AND SHARED THEIR OPINION 

    "UN GRAND MERCI POUR LA CONFERENCE CONCERNANT LA CHINE, AS ALWAYS INSIGHTFUL, INTERESTING, IN DEPTH AND EASY TO UNDERSTAND" - BENJAMIN, LUXENDREAM

    "MERCI ENCORE POUR HIER. C'ETAIT TRES INTERESSANT, D'AUTANT PLUS QUE LA CHINE REPRESENTE UN DE NOS PLUS GROS MARCHES.  REMERCIEZ POUR MOI CHUNYAN ET PHILIPPE POUR LEUR PARTICIPATION" - LUCAS, LACOSTE

    "JE TENAIS EGALEMENT A VOUS REMERCIER POUR L'ORGANISATION DE CETTE BELLE CONFERENCE OU NOUS AVONS APPRIS BEAUCOUP GRACE A UNE PRESENTATION TRES CLAIRE" - CAMILLE, CHANEL

    "GRAND MERCI POUR CETTE CONFERENCE TRES INTERESSANTE QUI M'A DONNE UN AUTRE REGARD SUR BIEN DES SUJET. ELLE FUT RICHE EN ENSEIGNEMENTS ET TRES CONVIVIALE. BRAVO POUR LE TIMING CAR LE FAIT QU'IL N'Y AIT PAS EU DE DERAPAGE M'A PERMIS DE PROFITER DES CONCLUSIONS" - VINCENT, KPMG

    THE SPEAKERS' POINT OF VIEW ABOUT THE CONFERENCE

     CHUNYAN LI

     

    Philippe Jourdan


    CHINA: AN ECONOMY IN TRANSITION

    Both speakers started with a reminder of some important economic indicators which are necessary to develop and establish a healthy Chinese economy in the World: a slowing but still positive growth, the recent devaluation of the Yuan but with forecasts that should take into account the political will of the Chinese authorities to reduce their dependence of the dollar (and primarily of the US debt).

    Based on this perspective, the Chinese economy is in the transition from a "Made IN China" through a "Made BY China" to a "Made FOR China" culture, although the share of GDP devoted to domestic consumption and expenditure of the Chinese government is still behind compared to those traditionally reserved for investment and net exports.

    luxury,china,promiseconsulting,fashion,jewellery, slowdown, debt, economy

    [CLICK TO ENLARGE]

    A LUXURY ECONOMY WHICH IS VERY (TOO) DEPENDENT OF CHINESE TOURIST PURCHASES

    In 2000, 10 million tourists traveled the world. During the year 2020, 200 million Chinese tourists are expected to travel abroad. In 2015, they were nearly 105 million to move beyond the Chinese borders. Of course, the first regional destination remains by far Asia. However, while the movements and trips to Hong Kong have recognized a slow-down (in response to the sinophone manifestation of the residents of Hong Kong), the Chinese tourism presents a good performance in France despite its unfavorable security environment. In the end, nearly 77% of the Chinese luxury goods purchases ("personal luxury goods") are realized abroad (24% in Asian countries nearby and 53% outside this sphere).

    luxury,china,promiseconsulting,fashion,jewellery, tourism

    [CLICK TO ENLARGE]

    CHINA: "IT IS ALL ABOUT DIGITAL, IDIOT"

    With more than half of the connected population (50.3%), nearly 3h45 spent on average per day on digital networks and 594 million Chinese connected to their mobile phones, the Internet plays a vital and inescapable role regarding the Chinese communication and information research methods. And we go even one step further: with an increasing tendency, the Chinese are getting more and more likely to realize online purchases to such an extent, that the online US trade is expected to be exceeded by the end of 2016 (forecast: $ 371 billion of Chinese purchases against $ 326 billion for the US).

    The Chinese digital landscape has obviously its specifics and is very different from the one of the Western countries. For each type of digital application developed in the West (search engines, social networks, networks of micro-chats and micro-blogging, etc.) there exists a Chinese version, which is far away from just being a clone of its Western counterpart. In particular, among all social networks, Weibo, the Chinese Twitter, and WeChat, a combination of Facebook, WhatsApp and Skype, have become the companies’ most preferred promotion tools. They have respectively reached the 222 million and 650 million active users in 2015.

    luxury,china,promiseconsulting,fashion,jewellery

    [CLICK TO ENLARGE]

    THE CHINESE CULTURE: BETWEEN GUANXI AND MIANZI

    digital, luxury,china,promiseconsulting,fashion,jewellery

    [CLICK TO ENLARGE]

    According to a Chinese proverb, “Just as a tree needs bark, someone needs his face". The culture of Mianzi ("face") attaches great importance to the various forms of respect, social acceptance and recognition. Everybody lives in and through the eyes of others: a trend of the Chinese elites is therefore to systematically compare themselves to others in terms of both criteria, professional and personal success. Luxury goods subsequently allow the wealthy Chinese to materialize and demonstrate their social status and financial situation to others and thus shape the image they wish to send to those around them (...).

    In China, "the formality must be mutual". Indeed, the Chinese highly value social relationships within their close circle, also known as the famous “Guangxi”. Having a good "Guanxi" allows the Chinese to benefit from mutual support and to proceed or solve problems faster. Finally, the favor – also called "RenQuing" in Chinese - can be a real credit or a true debit. Seen from this perspective, offering a valuable gift, no matter if it is a product or a powerful experience also enhances the "face" ("Mianzi") of the interlocutor (…).

    THREE GENERATIONS OF LUXURY BRANDS CLIENTS IN CHINA

    Nowadays there are three clearly identified generations of luxury goods consumers in China, which strongly differ in terms of their profile, expectations and their luxury experiences.

    digital, luxury,china,promiseconsulting,fashion,jewellery

    [CLICK TO ENLARGE]

    The first generation is the one of the Baby Boomers. Born between 1950 and 1964, they fully lived in the era of President Mao, wherefore their state of mind is marked by nationalism and idealism and their life shaped through the frugality they recognized during their youth. The Cultural Revolution presents for them a strong reminder of the sustainable weakening of traditional and ancestral values ​​of the Chinese society, whereby some of them reminisce still about the great famine of 1958 to 1961. Being in the position to make decisions and confident about their power, they combine both, power and wealth, which enables them to get everything they want, and of which they were deprived in the first part of their lives.

    The second generation is the Generation X (1965-1979). The children of the economic reform, initiated in 1978, were educated by MAO and trained by Bill Gates. This high tension has caused confusion and a certain sense of insecurity among them. This fact represents the reason for their opportunistic behavior and their search and need for material security. They were among the first to consume luxury goods, whereby 60% of them purchase these products to increase their self-esteem. Approximately 80 % of the Chinese private companies are run by representatives of this generation.

    The third generation is the Generation Y (1980-1995).  Since their early childhood, people of this generation benefited enormously from the economic reform, without having gone through very difficult times. Generation Y is confronted with a wide variety of consumer choices, wherefore their behavior and habits westernize, although they kept their Chinese roots. Ordering a Big Mac at McDonalds' or a coffee at Starbucks, using the iPhone or iPad to connect themselves to the Internet and chat with strangers, or buying products on WeChat or e-commerce websites, became part of their daily lives.

     THE FRENCH LUXURY BRANDS THAT REMAIN VERY APPRECIATED

    The Conference concluded with the presentation of the results of the Barometer Front Row, jointly conducted by Promise Consulting and Exane BNP. This barometer measures for different countries the Exclusivity and Desirability of Luxury Brands in the world of fashion (ready-to-wear, bags and shoes) as well as for the domain of Cosmetics (perfumes, skincare and makeup).

     [TO VISUALIZE THE COMPLETE RESULTS CLICK HERE]

    digital, luxury,china,promiseconsulting,fashion,jewellery

    TO CONTACT US

    Do you want to know more? Do you have a project on China? Do you want to know our offer on international studies in the segments luxury brands, beauty and selective distribution?

     

    luxury,china,promiseconsulting,fashion,jewellery, valerie jourdan

    ABOUT PROMISE CONSULTING

    Promise Consulting is a company specialized in marketing studies and consultancy, issued from the merge of Promise Consulting Inc., JPL Consulting and Panel on the Web.

    Promise Consulting integrates services of market research and marketing consultancy delivered with a high added value. We created an innovative measuring methodology of a brand’s performance and its return on investments (ROI): the “Monitoring Brand Assets ©”. This methodology, deployed in nearly 50 countries, has surveyed 250 brands in multiple sectors, totaling over 1,5 millions questionnaires. 

    Established in Paris, New-York and Casablanca, Promise Consulting conducts studies and services of consultancy in the whole world. Promise Consulting is mostly known for its expertise in measuring a brand’s value from the clients’ perspective.

    Promise Consulting has developed innovative techniques and models, was awarded 7 times in 10 years, by its Peers nationally and internationally. It provides insights and recommendations to the most notorious brands in luxury, cosmetics and retailing sectors, helping them develop on national and foreign markets. It is also active in several sectors of the industry, every time the brands are looking for an effective growth strategy in order to better understand the market, to reach their customers, attract them and, finally, keep them.

    Pr Philippe Jourdan, CEO of Promise Consulting, is the editor-in-chief of Adetem’s journal, the French Journal of Marketing (Revue Française de Marketing, RFM), since 2011. He publishes in academic journals internationally on the problems of the valuation of the brands in luxury, beauty and selective distribution. He also publishes in the economic press and news media (such as Le Monde, les Echos, le Figaro, l’Opinion, la Revue des Marques, etc.). Philippe is a university professor, researcher at the IRG (CNRS) and laureate of the Best Article of Research AFM 2000. He holds a certification in social media.