Chinese Consumers Ascend to Top of Luxury Market
Source Article: (Forbes, 8 March 2010)
Luxury consumers in China recognize they will soon be the world’s top luxury goods market, and they are expecting companies to respond accordingly with targeted products, including limited editions produced exclusively for the Chinese market.
Our View: Although China is the world’s fastest-growing retail market, its consumers actually spend far too little, proportionate to its economy, as wages are low for a large majority of workers. Do your research and understand consumers’ consumption patterns and preferences when considering expansion into China. Follow four steps to successfully build scale and presence in China: analyze the market, understand customer habits, establish entry strategy, and, finally, increase presence in the market.
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One Response to “Chinese Consumers Ascend to Top of Luxury Market”
It’s also important to have a clear “tiered” strategy for going from the top-tier (Beijing, Shanghai) into the potentially more lucrative second- and third-tier cities. A recent McKinsey study projected that around 75% of new wealth will be produced outside of the top tier in coming years. It’s going to be key for companies to establish strong footholds in these smaller cities so they can build brand equity and cash in later. http://www.jingdaily.com
Comment made on March 10th, 2010 at 3:54 pmLeave a Comment