If you needed any further evidence that China is THE great hope to drive growth in the luxury sector for the foreseeable future, look no further than France's Comité Colbert, the prestigious trade association that represents seventy of France's most venerable luxury brands. The trade association recently launched an interactive 3-D website called "cColbert" intended primarily for Chinese consumers. There, browsers can learn more about the history and traditions of craftsmanship and creativity that make French luxury brands coveted the world over.
Currently, Chinese consumers account for up to 25 percent of total world market consumption of luxury goods recently overtaking the US to be the second-largest luxury market in the world. Moreover, Goldman Sachs expects sales revenue of China's luxury market to break $5 billion USD this year far outpacing growth throughout the rest of the world. (Source) The website therefore makes perfect sense given the importance of China to the luxury sector's prospects for growth.
The effort to educate Chinese consumers strikes me as an excellent strategy in the long term. Typically, brands who invest considerable resources in educating potential clients about the history and traditions that make their products special have less trouble getting customers to pay the eye-popping prices these products command. Hermes for instance which periodically engages in educational PR efforts is a perfect example of this. Moreover, the strategy may also help luxury brands combat the counterfeit trade - an ever present thorn in the side of the industry. Once a customer understands precisely what they're paying for, the appeal of the fake is likely to lessen.
Sincerely,
The Luxe Chronicles
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