In 2011, I was studying MA Fashion Promotion ( direction: Brand Management ) while I was working in Christian Dior in Birmingham. There are some exclusive insight I have gained and caputrued from industry. This was one piece work I have done during the period.

1. The Challenge of
the increase demand for luxury brand from Chinese market
Presented by
Huang Jing
06, December, 2011

2. In UK, retail value is from £ 1950 to £ 2250 during 2011
Iconic bag
LADY DIOR

3. Lady Dior Average weekly Sales Figures
2011
The Consumption of Lady Dior by Chineseis much higher
than either European or others.

4. Economics Environment

5. The tables show China GDP has been incredibly growing while
European area went down oppositely.

6. In China
Skylines in Shanghai
Million private car ownership

7. In Europe
soaring unemployment rates
Bank Crisis
Shops were closing down

8. Question Marks:
Are economics the only reason for
high Chinese demand, or is it more
complicated than that? And is it all
good news for luxury brands?

9. More Reasons are…
 Culture Focus and Lifestyle
 Dress Code
 Consumer Promotion Events
 Brand Appeal

10. The Comparison
between China and Europe

11. Culture Focus and Lifestyle

12. Success defined by
what you have,
you do, what your
social position is
In China

13. In Europe
more focus on
the life they
want

14. Dress Code

15. In China There is no strict boundary of dress code to
require women wear in different occasion.

16. In Europe People follow the dress code to identify
themselves and fit in the different social life.

17. Consumer Promotion events

18. In China
Lady Dior bag of light

19. In Europe

20. Brand Appeal

21. Luxury brands for both of the markets convey a
quality standard of excellence, it acts as social
codes indicating access to the rare, exclusive
and desirable.

22.  Chinese people enjoy the visible and direct
definition of being high social status which
luxury brand value could bring to them.They
are desired and willing to pay for the big ticket
luxury they want.
 European people would like own the luxury to
suit their lifestyle. Also they are paying to be
part of the story and brand culture.

23. We need to
think again…
 are Chinese (former famous money saver)
the only luxury big spender for luxury fashion
brand nowadays?
 Is there worry for destroying the brand value
or luxury exclusivity?

24. One Case Analysis

25. Christian Dior, Gucci,Jimmy Choo, three
boutiques in Birmingham are all stocking
and selling Bag and other accessories, the
different strategy of product and price
management shows different sales
performers.

26. Birmingham Selfridges Concession Sales Figures
January to October, 2011

27. PriceandProductRangeandSalesPercentage

28. Nationality Consumption Figures
According to the figures above, they show British surely spend
in Luxury brand as a European market, no less than Chinese.
Chinese are more prepared to invest in one-off big ticket items,
or actual more items.

29. The challenges..
 deliver the brand value globally
 Maintaining the exclusivity or global
brand reputation

30. Conclusion
 Luxury brands need to balance their wish to expand
in new markets without abandoning their
traditional markets to avoid the possibility of brand
value and exclusivity damaging, even the business
growing.
 They should concentrate on promoting brand
values that are compatible across these markets.
But continue to deliver the brand message in a
tailored way.

31. Discussion
Why do you think Chinese like to
buy luxury brands so much?

32. Thank you !

33. Reference
 Lady Dior Average weekly Sales Figures September,
October2011 from Christian Dior internal informationOct, 2011
 China GDP, Euro Area GDP FigureTables fromTrading
Economics
 http://www.tradingeconomics.com/
 Christian Dior, Gucci, Jimmy Choo Sales figures/Transaction
detail Birmingham, January to October, 2011 collected from
sales figures,2011,Selfridges, Birmingham
 The percentage figure of nationality consumption from
Christian Dior, Gucci, Jimmy Choo, Selfridges, Birmingham
collected from staff interviews, 21st, Nov, 2011
 Luxury Brands in China by KPMG
 http://www.kpmg.com.cn/en/virtual_library/Consumer_markets
/CM_Luxury_brand.pdf