The Future of Marketing Chinese Luxury Brands

An Analysis of Current Consumer Behavior and Future Implications

DOI

10.2991/aebmr.k.210601.028How to use a DOI?

Keywords

Luxury brand, Chinese market, Consumer behaviour, Marketing strategy

Abstract

Mainland China has seen significant expansion in its luxury goods market over the past decade and is on track to become the world’s largest luxury consumer by 2025. Understanding the most current consumption patterns of Chinese luxury consumers is pertinent to brand success in China. The purpose of this paper is to examine how domestic luxury brands can optimize their marketing strategies to better adapt to the Chinese luxury market, which foreign brands now dominate. This study analyses the market’s consumer behaviour and business strategy through three research designs: (1) The literature research approach is used to analyse Chinese consumer behaviours. The result shows a growing trend of digitalization and preference for domestic brands in recent years. Furthermore, the digitalization trend also reveals the bandwagon effect, where consumers purchase a certain brand to establish their sense of belonging to a designated group. (2) The case study approach analyses luxury brands Shanghai Tang and Louis Vuitton to gain insights on business strategies. Shanghai Tang succeeded from its focus on customer experience but suffered from ambiguous brand positioning. Meanwhile, LV could take advantage of social media platforms such as Xiaohongshu to align with current trends. (3) Using summary and induction, three strategies are suggested for domestic luxury brands: introducing daily-life products, brand-specific customer demand assessments, and digitalization. This study’s findings fill the gap for the lack of understanding in regards to luxury Chinese fashion brands. The result provides insight into the current Chinese luxury market and marketing strategies, which can be adapted by both domestic and foreign brands.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jun Liang Li
AU  - Wenxi Li
AU  - Zeyang Wang
AU  - Ziwei Wang
AU  - Xinyao Zhang
PY  - 2021
DA  - 2021/06/02
TI  - The Future of Marketing Chinese Luxury Brands
BT  - Proceedings of the 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021)
PB  - Atlantis Press
SP  - 159
EP  - 166
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210601.028
DO  - 10.2991/aebmr.k.210601.028
ID  - Li2021
ER  -