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China: More than Just a Buzzword

by

Sophie Doran

|

This is the featured image caption
Credit: This is the featured image credit

P1.cn presents a snapshot of the Chinese luxury market, examining the demographics of the increasingly powerful Chinese consumer

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

P1.cn presents a snapshot of the Chinese luxury market, examining the demographics of the increasingly powerful Chinese consumer

One could be forgiven for tiring of the combination of ‘luxury’ and ‘China’ in the media, of the endless forecasting, reporting and analysis that takes place on the world’s ‘most important’ prestige market. However a quick round-up of the facts by affluent social network P1.cn, is enough to jolt even the tiredest of business executives out of their China-over, and effectively communicate just how important the Chinese market is to our industry.

Let us consider that in 2010 luxury consumption in the region rose an unprecedented 23%, the equivalent of 12.7 billion US dollars. China now accounts for 27.5% of the global market, primarily purchased by roughly 50 million affluent consumers, who only account for 5% of the urban population. Looking at those statistics, the growth opportunities are frightenting.

Whilst it may come of no surprise that the ‘favourite’ brands in China are Louis Vuitton, Hermès and Chanel, what is surprising, is the age and employment status of the luxury consumer. In China, the customer is an average of 20 years younger than that of US and Japanese counterparts, with increasingly high levels of education and self-employment.

With this newfound affluence, ‘China has developed some huge communities and clubs, for wealthy digital members who want to improve their brand culture’ (Nathalie Omori). One particular social network, P1.cn, connects over 1 million members in Beijing, Shanghai, Hong Kong and Guangzhou, as well as developing Market Reports on luxury cosmetics, cars and mobile devices for the Chinese market. They present a video summary of their home market, drawing on some of the key business reports listed below.

Other must-read reports on China and luxury

– Bain & Company’s China Luxury Market study 2010

– Hurun’s Luxury Living Index

– CLSA’s Dipped in Gold: Luxury lifestyles in China and Hong Kong

– McKinsey’s Understanding China’s Growing Love for Luxury

Sophie Doran
Sophie Doran

Creative Strategist, Digital

Sophie Doran is currently Senior Creative Strategist, Digital at Karla Otto. Prior to this role, she was the Paris-based editor-in-chief of Luxury Society. Prior to joining Luxury Society, Sophie completed her MBA in Melbourne, Australia, with a focus on luxury brand dynamics and leadership, whilst simultaneously working in management roles for several luxury retailers.

RETAIL

China: More than Just a Buzzword

by

Sophie Doran

|

This is the featured image caption
Credit : This is the featured image credit

P1.cn presents a snapshot of the Chinese luxury market, examining the demographics of the increasingly powerful Chinese consumer

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

P1.cn presents a snapshot of the Chinese luxury market, examining the demographics of the increasingly powerful Chinese consumer

One could be forgiven for tiring of the combination of ‘luxury’ and ‘China’ in the media, of the endless forecasting, reporting and analysis that takes place on the world’s ‘most important’ prestige market. However a quick round-up of the facts by affluent social network P1.cn, is enough to jolt even the tiredest of business executives out of their China-over, and effectively communicate just how important the Chinese market is to our industry.

Let us consider that in 2010 luxury consumption in the region rose an unprecedented 23%, the equivalent of 12.7 billion US dollars. China now accounts for 27.5% of the global market, primarily purchased by roughly 50 million affluent consumers, who only account for 5% of the urban population. Looking at those statistics, the growth opportunities are frightenting.

Whilst it may come of no surprise that the ‘favourite’ brands in China are Louis Vuitton, Hermès and Chanel, what is surprising, is the age and employment status of the luxury consumer. In China, the customer is an average of 20 years younger than that of US and Japanese counterparts, with increasingly high levels of education and self-employment.

With this newfound affluence, ‘China has developed some huge communities and clubs, for wealthy digital members who want to improve their brand culture’ (Nathalie Omori). One particular social network, P1.cn, connects over 1 million members in Beijing, Shanghai, Hong Kong and Guangzhou, as well as developing Market Reports on luxury cosmetics, cars and mobile devices for the Chinese market. They present a video summary of their home market, drawing on some of the key business reports listed below.

Other must-read reports on China and luxury

– Bain & Company’s China Luxury Market study 2010

– Hurun’s Luxury Living Index

– CLSA’s Dipped in Gold: Luxury lifestyles in China and Hong Kong

– McKinsey’s Understanding China’s Growing Love for Luxury

Sophie Doran
Sophie Doran

Creative Strategist, Digital

Sophie Doran is currently Senior Creative Strategist, Digital at Karla Otto. Prior to this role, she was the Paris-based editor-in-chief of Luxury Society. Prior to joining Luxury Society, Sophie completed her MBA in Melbourne, Australia, with a focus on luxury brand dynamics and leadership, whilst simultaneously working in management roles for several luxury retailers.

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