The communication of the French markets on the sector of the luxury in China
- From the Great Depression to World War I (1873-1914)
- The Great Depression (1873-1895)
- The end of British hegemony.
- The assertion of the working classes
- A new age of industrial capitalism
- The age of imperialism
- Greater turmoil (1914-1945)
- From war to the crisis
- A broken world
- The great leap forward in capitalism (1945-1978)
- From war to the crisis
- The new mutation of capitalism
- Late twentieth century: The beginning of a shift in the world?
- The transformation of the late twentieth century
- Lines of force affecting the world
Though not very well involved in industrial France, and reaching less than 1.5% of value added and less than 2% of gross domestic product, the luxury market appears in very different business sectors and among the four sectors of most French exporters.
The early deployment of commerce in French luxury products in Europe and the United States, Asia, Latin America, Eastern Europe, and India, explains that the French brands have a great reputation and France remains the world leader holding 47% of the market share.
Global brands of luxury include the most prestigious French brands like Chanel, Hermes, Dior, Vuitton, and Cartier. The LVMH group is the world leader in luxury and the group L'Oreal is the world's largest cosmetics brand.
China is currently the third largest luxury market in the world and there is a need for France to improve its communication in this country. The current growth of China and the growing interest for Chinese luxury goods provides a source of tremendous growth for the industry.
In fact, the global growth currently ranges from 8 to 10%, and 2%-3% of this growth comes exclusively from China. In other words, a quarter or a third of the current and future global growth is Chinese. China attracts the interest of foreign companies. They see a strong economic potential.
Can China be regarded as the new "Eldorado" for luxury brands? How do the French brands communicate in order to exploit this tremendous opportunity (such as China), knowing that this market (and consumers) are very different from the traditional European market?
It is very difficult to define luxury as this term is a complex concept,this word includes the ideas of cultural, artistic, sociological, It is impossible to reduce the luxury to ordinary economic market. The operational definition taking into account the position of brands on the market and consumer perception. A luxury brand is a registered, selective and exclusive product which provides additionalcreative and emotional value to the consumer.
In China, luxury goods are more accessible. Particularly promising sectors for French companies in China are:ready-to-wear, the phrase "smart casual" ready-to-wear, leather goods, fashion accessories and luxury in the house. All sectors, China is primarily a producer of products for entry and midrange. Imports are needed to overcome the lack of premium items and luxury. Until China has its own luxury brands, this countryhas excellent growth prospects for French firms in this sector.
Even if the Chinese industry has made remarkable efforts in terms of quality, Chinese consumers continue to prefer foreign brands. The image of France as a committed romantic and Paris as refined, is deeply rooted in the Chinese imagination. On it rests the sale of cosmetics, perfumes, clothing and luxury accessories. Indeed, the references of consumers often respond to pre-established ideas.
China is a large market and the types of customers for luxury goods varies from one region to another. It is therefore difficult to generalize but some major consumer trends can be identified. Chinese consumers of luxury goods are usually leaders, artists, celebrities, people in professional, executives, expatriates, as well as senior officials or the Chinese from the wealthy classes.
Tags: China emerging market, French luxury, China market for luxury goods.