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Luxury brand growth in China add to social status of Chinese consumers
01 Apr '08
4 min read
Also, several foreign fashion brands have moved their production to China -- so China is becoming an integral part of the high end fashion industry in all aspects. Our company understands the consumer, knows the competition and feels we can compete with well-known foreign luxury brands."
Coach Inc, internationally desired for its luxury handbags and accessories, has ambitious plans for its line in China. According to Coach, "We expect Greater China, which includes Hong Kong, Taiwan, and mainland China, to grow rapidly, achieving 10% of the global market by 2009.
Therefore, we are focused on this opportunity, as we believe Greater China has the potential to become a third leg for Coach. Although we're still in the very early stages of our development in Greater China, we have made great progress and estimate our market share today at about 4%. At year end there were a total of 49 Coach locations in the region, including 15 in mainland China, 13 in Hong Kong, 1 recently opened in Macau, and 20 in Taiwan."
Luxury car manufacturers are also gaining traction in China's new economy. According to a study by BMW Group, "only 3.7 percent of the Chinese population, i.e. around 50 million people, earned enough money to buy a car in 2002. By 2010 this figure should increase to 13 percent."
Swatch Group Ltd just reported net income for 2007 exceeded CHF1 billion for the first time as part of a continuing global market for luxury goods, particularly in China, with Europe and the United States also performing well. In December 2007, The Swatch Group Ltd announced it increased its participation in Xinyu Hengdeli Holdings Ltd. from 7.25% to 8.09%. Xinyu Hengdeli Holdings Ltd. is the largest watch retail chain in China and is listed on the Hong Kong stock exchange.
As China builds dominance as both a manufacturer and a consumer of luxury goods, companies that know both sides of the market have a higher chance to succeed and grow market share. In terms of growth opportunities for luxury brands, it has only just begun.
Coach Inc, internationally desired for its luxury handbags and accessories, has ambitious plans for its line in China. According to Coach, "We expect Greater China, which includes Hong Kong, Taiwan, and mainland China, to grow rapidly, achieving 10% of the global market by 2009.
Therefore, we are focused on this opportunity, as we believe Greater China has the potential to become a third leg for Coach. Although we're still in the very early stages of our development in Greater China, we have made great progress and estimate our market share today at about 4%. At year end there were a total of 49 Coach locations in the region, including 15 in mainland China, 13 in Hong Kong, 1 recently opened in Macau, and 20 in Taiwan."
Luxury car manufacturers are also gaining traction in China's new economy. According to a study by BMW Group, "only 3.7 percent of the Chinese population, i.e. around 50 million people, earned enough money to buy a car in 2002. By 2010 this figure should increase to 13 percent."
Swatch Group Ltd just reported net income for 2007 exceeded CHF1 billion for the first time as part of a continuing global market for luxury goods, particularly in China, with Europe and the United States also performing well. In December 2007, The Swatch Group Ltd announced it increased its participation in Xinyu Hengdeli Holdings Ltd. from 7.25% to 8.09%. Xinyu Hengdeli Holdings Ltd. is the largest watch retail chain in China and is listed on the Hong Kong stock exchange.
As China builds dominance as both a manufacturer and a consumer of luxury goods, companies that know both sides of the market have a higher chance to succeed and grow market share. In terms of growth opportunities for luxury brands, it has only just begun.
OmniaLuo Inc
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