Challenges and Strategies of French Luxury Goods Marketing in Advanced Emerging Countries: A Case Study of Chinese Luxury Consumers
BENEFITS AND PITFALLS OF RELOCATING BUSINESSES IN EMERGING AND DEVELOPING, Routledge, 2010
38 Pages Posted: 28 Jan 2012 Last revised: 7 May 2013
Date Written: October 2, 2010
Changing economic epi-centre from the west towards the east is accompanying the luxury goods markets and the emerging Chinese market is becoming impossible to overlook for the luxury goods brands. Potential purchasers buying process of conspicuous and hedonic values enabled Luxury goods differ from the buyers of usual consumer products. In consequence, Taste, motivations and factors of luxury goods purchasing process differs from the buying process of usual consumer products. Adding to this already complex buying process of luxury brands, the novice Chinese luxury buyer’s and potential aspirer’s mode of luxury purchasing process further complicate the marketing and management strategist strategy formulation process. In many count, Chinese luxury buyers, High-net-worth-individuals (HNWIs), are different from their western counterparts. The Confucian background, socialist political system, frugal-value oriented collective society and above all the fastest economic rise and rapidly changing societal pre-existent values make this new comer’s luxury buying attributes very challenging to the strategist. Thus the rapid economic growth, public policy and cultural factors have made Chinese affluent customers different from their peers in the west as well as in the east (i.e Japan and India). On the other hand, subjective and complex concept of luxury is primarily built on consumer perceptions, as the meaning of luxury is determined by personal and interpersonal motives (Vigneron & Johnson 2004). Due to different interactions on a personal and social level, consumers will develop different perceptions of luxury brands. Thus luxury product can be considered as a multi-dimensional object which was studied and analyzed in academic research by economist (/management), sociologist as well as marketing experts. Marketing theories on luxury goods consumption and marketing emphasized on the relationships among luxury, income and culture. This study tries to focus on the distinctiveness of Chinese consumers and how to target them effectively. Based on systematic literature review, content analysis of academic and professional publications and partial empirical data, luxury marketers need to include Chinese social, economic and cultural factors while formulating marketing strategy in this rising market. Targeting the right wealthy consumers, appropriate Marketing tools, promoting local content, building long term co-operations with local firms and service providers are very important for this market. Introducing programs and policies for brand awareness and luxury taste (i.e Luxury Knowledge) among the Chinese HNWIs are very important for success in long term. Gaining experiences in luxury products retailing in an emerging market like China can also open the flood gate of opportunity in the future to new emerging countries in Asia and elsewhere.
Keywords: Luxury brands, emerging market, luxury marketing, luxury strategies
JEL Classification: M31, N75
Suggested Citation: Suggested Citation