A rapidly growing share of Chinese luxury shoppers are doing their purchasing abroad where good are often less expensive. This raises the danger that a brand may lose consumers’ trust if its stores or products fail to present a consistent image in both China and elsewhere around the world.
Chinese consumers’ tastes in luxury products are maturing with surprising speed. Shoppers with just a few years’ experience as buyers of such products increasingly prefer low-key and understated goods to ones that are emblazoned with popular logos. Yet the market is splintering, because the fast-growing numbers of new entrants still favor widely-recognizable brands that show off their status. As tempting as it may be for firms to try satisfying all kinds of consumers, doing so risks diluting their brands’ cachet.
Via Jerome Goldberg (JMG-Research), Benjamin Di Crescenzo