Getting it right: Luxury brands in China
“If you build it, he will come.”Field of Dreams
This famous quote from the sports film ‘Field of Dreams’ is also an appropriate metaphor for how foreign brands approach China. What they see is the huge opportunity presented by launching a store on Tmall, for example. Yes, there are extensive opportunities for luxury brands in China as Chinese consumers are set to make 50% of all luxury purchases by 2025.
Yet, many luxury brands have struggled to enter the Chinese market in a way that sets them up for success. Some even left a bad impression on Chinese consumers. Furthermore, although luxury brands strive to establish themselves on Tmall, only 1% of Tmall stores actually make a profit.
So, how should luxury brands develop their presence on Tmall, and, in China?
Luxury in the “new normal”
Due to COVID-19, the global luxury industry is expected to contract between 20-35% in 2020. To be successful in the Chinese market, luxury brands must adapt and be creative with their digital strategy.
The formula to enter the Chinese market has changed.
With the rise of social commerce on short video platforms including Douyin (TikTok) and Kuaishou, brands switching from KOLs to KOCs and the increasing need for localisation. The Chinese market is not an easy one to crack.
So, what does it take to succeed in the “new normal”?
Dos and don’ts of China’s luxury market
Luxury brand Pedro Garcia’s Zahara will offer unique insights from a luxury brand currently in the process of entering China. We will discuss dos and don’ts for luxury brands entering China’s “field of dreams”.
As part of our Bring Your Own Brand (BYOB) series, we ask you to bring experiences and examples from your own brand to help influence the discussion. The event will be interactive with live polls, exclusive material and a question and answer session.
Our event is under strict Chatham House Rules – “Live means Live” – so there will be no recording. That way everyone is free to share their own experiences.
Sign up now to find out how to make your brand work in China!