i Introduction ii ArticleWW iii Infographic 1 iv Article v Infographic 2 vi Conclusion vii Index
This is the second booklet in a series of five. The population increase in China has led to an expansion of the middle class which has created a higher demand for luxury goods. The infographics featured within this booklet show the number of luxury brands recognised in China and sales of luxury goods in China from 2010 to 2020.
THE CHINA EDIT | Luxury
Crackdown, ConsumerArchetypes, Spending Youth, Taobao’s Fashion Show, Dior Homme By Lina Lee 23 April, 2013
The China Edit is a weekly curation of the most important must-read fashion business news and analysis from and about the world’s largest luxury market.
“Upcoming Dior Homme Beijing Show Continues Emphasis On Upscale Luxury” (Jing Daily) To celebrate the reopening of its Seasons Place shop, Christian Dior SA is staging its first menswear show in China. The encore presentation of the house’s Autumn/Winter 2013 ready-to-wear Homme collection will take place on Thursday at the Central Academy of Fine Arts in Beijing and include a supplement of designs not previously shown in Paris. Affluent Chinese male shoppers are a key focus for international luxury brands. Studies by consulting companies including Bain & Co and McKinsey have documented their increasing appetites for designer apparel and accessories. And as these consumers are currently less likely to follow seasonal collections shown abroad, we are likely to see an influx of domestic events and media aimed at raising the profile of luxury menswear offerings.
“Think China’s Luxury Consumers Are All The Same? Think Again.” (Jing Daily) BBDO’s Nick Cakebread compares and contrasts two types of Chinese luxury consumers, who jointly make up most of domestic luxury spending. Urban Middle-Class Aspirants he defines as the upwardly mobile set brimming with confident over their future earning power. They aim to project success through appearances and consequently rely on luxury brands for social signaling. Meanwhile The New Nobility are the “ultra-high-net-worth” — the established business, industrial and Communist Party elites who move discreetly in polite society. This group is more nationalistic and more interested in domestic luxury brands.
Sales of luxury goods in China from 2010 to 2020 (in billions euros)
Shang Xia Bets Big On Bringing Chinese Culture To Luxury
Shang Xia (Mandarin for “up down”) opened its first retail store in Shanghai in 2010. Now it’s ready to expand, targeting big spenders who can afford luxury products whose quality are on par (and price point) with Chinese artifacts. “This is a cultural project with a business aspect. What we are doing is quite unique. This is the real luxury,” said Jiang Qiong Er, Shang Xia CEO.
The brand just opened a 1,480 squarefoot store in Beijing’s China World Mall — its second location in China. The store’s decor was inspired by the Great Wall of China and features natural wood and bricks of pu’er tea. Jiang calls the location a test-lab for the brand’s offerings, which include $45,000 gold-woven porcelain teapots and red sandalwood tables. In addition to housewares, the store boasts Chinese-infused clothing, like cashmere dresses inspired by the traditional Chinese qipao and yak-hair felt coats. “Shang Xia is a platform where we show the Chinese art of living with beautiful, quality, luxury objects,” said Jiang. ” Shang Xia is based on Chinese craftsmanship, Chinese history, Chinese tradition, the Chinese art of living. Our mission is not only a brand, it is not only to make some style. It’s also to bring the craft, the tradition, into today and tomorrow.” Jiang also notes that Shang Xia is bringing “emotion” into objects, and filling the nostalgic gap left by the Cultural Revolution when many traditional artifacts were lost. Shang Xia’s craftsmen execute each piece, and everything is sourced from China.
The prices are geared toward the most conscientious luxury consumer: yakhair felt coats and the brand’s popular Shan Shui tea set are priced at 12,000 to 15,000 yuan, or $1,900 to $2,400. To celebrate its cultural heritage, Shang Xia will host a Contemporary Craftsmanship exhibit at the National Agricultural Exhibition Center this month in conjunction with the Beijing boutique opening. By private invitation only, the exhibit aims to bring craftsmen and consumers together, and to educate potential Shang Xia customers about the value (and why it can charge the high price) of owning a one-ofa-kind, traditional piece that may take weeks or months to make. “I think China will conquer the world again, in the next 30 to 50 years, with our cultural renaissance,” Jiang said. “Today, many of the kids of the craftsmen do not want to continue. It is easier for them to work in a coffee restaurant. If they feel their know-how can have a larger use in our daily life, maybe more of them will be willing to continue with this way of life.” As a result of China’s vast economic growth, Jiang believes the country can now focus on developing its own culture.
Number of Luxury Brands Recognised in China (percent)
59 57 43 34
The infographic showing the number of luxury brands recognised in China has increased mainly due to the internet and media. The internet is a great tool for companies to create brand awareness from overseas. The sales infographic also shows increase, estimating further growth within the next decade.
Articles http://red-luxury. com/2012/10/12/shang-xia-betsbig-on-bringing-chinese-cultureto-luxury/
Infographic 2 Data http://www.kpmg.com/ CN/en/IssuesAndInsights/ ArticlesPublications/ Documents/Global-ReachChina-Luxury-201301.pdf
Infographic Visual Design Luella Del Basso
Layout Design Luella Del Basso
Infographic 1 Data http://www.statista.com/ statistics/234739/projected-
Scans Luella Del Basso