LIFE> Fashion
Challenges rise for luxury brands
(China Daily)
Updated: 2008-06-20 14:56

Status-seeking, known as the "bling factor" in the report, remained key to the growth of luxury consumption. However, Chinese consumers are also developing greater appreciation of brand values and heritage, with connoisseurship, trend-setting, and indulgence also emerging as luxury consumption drivers.

"As Chinese consumers have become more sophisticated, luxury companies also need to look beyond conventional advertising to build brand awareness," said Debnam.

"Alternative marketing strategies, including exhibitions, events, and sponsorship can be more effective in educating the market and reinforcing certain values, such as status, heritage and exclusivity."

The fact that Chinese consumers are able to travel easily overseas due to reduced restrictions and the renminbi appreciation also contributed to the growing sophistication of the luxury market.

In 2006, mainland tourists made 34.5 million outbound journeys, compared with just 12.1 million in 2001.

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