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1、RETAILLuxurybrandsinChinaConsumERmARkETs©2007KPMG,aHongKongpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.ContentsIntroduction2KeyfindingsfromTNS4LuxurybrandsandtheretailsectorinChina10Profiling
2、theChineseconsumer14Strategiesforluxurybrands18Thechallengesahead24Taxandregulatoryissues28KPMGcontacts32©2007KPMG,aHongKongpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirmsaffiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.LuxurybrandsinChinaInt
3、roductionChinahasexperiencedarelentlesssurgeinconsumerbuyingpowersincethe1990s.TheChineseconsumerhasbecomewealthierandmoreacceptingofWesternretailformats–withinternationalsupermarketchains,departmentstoresandmassretailerspavingthewayforluxuryretailers.Luxurybrandcompanieshavebeen
4、investingintheChinesemarket,withLouisVuitton,Bally,GucciandFerragamoamongthefirstwaveofretailerstoopenoutletsinChinamorethan10yearsago.1Butnow,withconsumerspendingpowerincreasingandthelooseningofgovernmentrestrictions,foreignluxurybrandsfacepressuretostrengthentheircommitmenttoth
5、emainlandorrisklosinggroundtotheirrivals.Luxuryisaconstantlyevolvingandsubjectiveconcept,andnoteasytodefine.Butmoreoftenthannot,thewordisusedtodefineaninessentialbutdesirableitemorastateofextremecomfortorindulgence.Whatsetsluxurybrandsapartisthattheycommandapremiumwithoutclearfun
6、ctionaladvantagesovertheircounterparts.Yetconsumersarewillingtopaythesignificantpricedifferencebecausetheyhaveauniquesetofcharacteristicsincludingpremiumquality,craftsmanship,recognisability,exclusivityandreputation.2Luxurybrandsnotonlyconveyastandardofexcellence,butactassocialco
7、desindicatingaccesstotherare,exclusiveanddesirable.3Thismakestheluxurymarketaparticularlyinterestingonebecauseitrepresentsconsumptionatitsmosthedonisticandseeminglyirrational–purchasingforthepersonalpleasureitprovidesdespitethefinancialcost.1“LuxebiztakesoffinChinesemarket”,Footw
8、earNews,Vol61(17),20052“Themassmarketing
