More academic focus on luxury product craze
China has set up yet another luxury management research and training center to cater to the nation's super rich. "China is in dire need of local talent in the luxury market," says Zhu Mingxia, director at the University of International Business and Economics research center, which opened in Beijing last month.
"While international luxury brands need local talents to achieve development in China, such talents are also urgently needed as China aims at creating its own luxury brands."
According to Sheng Lei, a market insider, the emergence of such an academic center indicates the potential of the industry. Sheng is general manager of Borrison Asia Ltd, which sponsors Top Marques Monaco in China, a company that displays international luxury items.
Sheng points out that such education should go beyond fact learning. "Books won't tell you what it feels like to travel in a yacht," he says. "The luxury industry is unique in that a sense of the culture and lifestyle is more essential than simply learning the basic management skills."
Sheng has been promoting luxury brands in China for four years. For those attending Top Marques Shanghai, eight out of 10 are estimated to possess well over 10 million yuan ($1.36 million).
International luxury brands are very interested in Chinese consumers. Some of the brands have enjoyed a 500 to 800 percent growth rate since their entry into the country four or five years ago, Sheng says.
Sheng has also observed a shift in attitude by wealthy consumers toward luxury goods. Unlike a decade ago, when most people bought luxury products to show off their wealth and power, Sheng notices that Chinese consumers are now growing more appreciative about quality of life.
According to a report by Goldman Sachs, China was third in the world's consumption of luxury goods, contributing to 12 percent of world consumption by the end of 2005. By 2015, China will be the world's largest consumer of luxury goods.
However, while the luxury industry sees golden opportunities in the Chinese market, companies soon discover gaps in their talent pool.
Danis Morisset, executive director of MBA Luxury Brand Management of the ESSEC Business School Paris, points out the shortage of management talent is holding back the development of China's luxury industry.
Over the past three years, Morisset has been cooperating with Shanghai-based Fudan University in a master's program specializing in luxury management.
Lin Shujuan contributed to the story
(China Daily 01/22/2008 page18)
