Survey said that 86% of Chinese consumers do not buy luxury goods labelled “Made in China”

Is China's luxury dream difficult?

“Chinese luxury goods consumption accounts for less than 1% of the global market share from 10% in 2010 to 10% in 2010, a 10-fold increase in 12 years. In the next 5 years, it will continue to grow at a high rate.” March 22, 2012 This is described in the 2012 Annual Report of the Asian Economic Integration Process published on the Boao Forum.

The global market has reached consensus: China is currently a blessed place for luxury brands. But China, which has become the world's second-largest luxury goods country, is facing an embarrassing situation: it lacks local luxury brands. Even if there are several Chinese brands that have been sold abroad as "luxury goods" in recent years, it is rarely known in China. According to a survey conducted by Global Luxury Magazine, 86% of Chinese consumers said that they would not buy luxury goods labelled “Made in China”.

What should a Chinese luxury brand that dreams really take on the international stage rely on?

Difficult local route "The difficulty of making luxury goods in China is unimaginable. Many in-depth issues cannot be solved." Zhang Zhifeng, founder and artistic director of Northeast Tiger Fashion Co., Ltd., told China Economic Weekly.

“The foreign brands that were originally second-line or even third-line have won opportunities in China that they have never encountered before. Many preferential policies for businesses cannot be given to domestic brands. Now we go abroad to open stores, and there is no such thing in foreign countries. The green light." Zhang Zhifeng with emotion.

However, even big names such as Hermes want to launch a pure Chinese brand also encountered disappointment.

In 2008, Hermès sloganed "Gifts to China's long-standing technology," and created a pure Chinese luxury brand "Up and Down" with Chinese designer Jiang Qionger, and opened its first store in Shanghai in 2010. At the time, Hermès was ambitious to claim that Hermès was the first international luxury company to launch a 100% Chinese brand and hopes to open 19 stores in China. However, after nearly a year and a half of opening, the “up and down” is still at a loss. Hermès CEO Patrick Thomas declined to disclose sales figures related to the “up and down” brand, but he acknowledged that the brand is not profitable for the time being and for some time to come. “The most important engine for luxury brands is history and culture. I think for luxury brands, the key to success is the eternal nature of history, culture and time.” Lei Mong, general manager of Hermès China, hopes that time can prove “up and down.” "It withstands the test."

"Maybe we will have our own luxury brand after 5 or 10 years." Lu Xiaoming, president of Ya (International) Co., Ltd., told China Economic Weekly. He thinks this is a very contradictory proposition. On the one hand, the precipitation of Chinese history and culture has given China reason to make international top brands. However, Chinese culture is also a factor hindering the development of top brands. "Chinese luxury goods must be localized. First of all, we must have confidence in the Chinese civilization. Second, we must use high-tech methods and research and development of high-tech performance materials," said Lu Xiaoming.

The acquisition is not the fastest route. With the development of industry, a luxury company has turned from a small family business to a multinational company. In order to compete for the brand's control, the luxury goods industry merges and smokes; venture capital, private equity, and mergers and acquisitions funds have shot to create a new luxury empire. At present, there are about 500 luxury brand merchants in the European market, and many Chinese companies are eager to try. Is acquisition the fastest way for China to create its own luxury brand?

Georges Kern, chief executive of Wanguo, Mingshi and Haojue brand thinks: “Brand is mostly from an imagination.” In addition to the good quality of the product itself, it also needs to satisfy the consumers and let consumers feel that their dreams can be realized. . However, “If there is no story behind a brand, it cannot be sold.” He told reporters how to create a story and build a global top brand. “First you have a very strong product, and you have to be reliable. The partnership must have a great story, and we must use appropriate methods to tell everyone about this story.” Georges Kern told China Economic Weekly that “Building a brand, acquisition is not the fastest route, it is the most difficult What is really difficult is how to truly brand, execute and manage."

“The current Chinese economy is moving from capital-driven to innovation-driven development from Chinese manufacturing to Chinese design.” Professor Michel Gutsatz, Head of MBA and EMBA Program at Marseille Business School, analyzed the status quo of the Chinese market and stated that “Chinese luxury brands are to develop There are two major obstacles: first, different barriers to business culture; second, cultural and creative barriers.” He believes that it can be achieved through three major methods: First, purchase European luxury brands and use their original management team; second, follow In the luxury goods industry there is a standard model, namely the form of cooperation between the two sides, one is the creative director, the other is the chief operating officer, and the third is cooperation with European brands and experts. “People often say that Chinese companies do not like to buy expertise and skills, but I am afraid that Chinese companies have to do this, and the purchases will be very expensive. Just like John Stuart said: If the company wants to split I will want brands, trademarks and goodwill. The physical assets can all belong to you. I will run better than you," said Michel Gutsatz.

Culture is the President of the GUCCI Minco Dousso once said proudly: “In the minds of many people, luxury brands are always associated with European impressions, and luxury brands from Asia are really hard to imagine.” However, at present, some pure Chinese luxury goods brands such as "fabric blue", "Zhaoyi", "Kirin", and "Shanghai" have already begun to show off in the international arena. Take French Blue Porcelain as an example. As China's famous porcelain brand in the world, it is currently sold in 56 countries around the world. Harvard Business School has already included “French Blue Porcelain” as a textbook for China’s luxury brand business case.

“In China, the luxury goods industry is not only a dream. It is a real business.” According to Bruno Lannes, a partner at Bain Consulting, there are more Chinese brands under development. These Chinese luxury brands not only represent China. The long history of culture, and inherited the exquisite craftsmanship of Chinese craftsmanship, so China's luxury brands can be successful, and even become a global luxury brand. Although Chinese luxury brands currently active on the international stage are far from comparable to top brands such as Louis Vuitton and GUCCI, there is no doubt that Chinese luxury goods have risen and flourished. Bruno Lannes said.

Cai Mingpei, chairman of Kaihui Private Equity Fund, told reporters that in the past five years, he has invested in four relatively high-end brands in Europe. His own experience shows that for the top brand, the spirituality of the brand is very important. It is not possible to change the rules of the game simply by investing in luxury brands with capital. “From the perspective of doing business, it is true that capital can play a role. But each brand comes from a different country, and we must fully respect his native soil, especially in terms of operations. It is only by creating Chinese own luxury brands with Chinese culture that we can impress all. We also have very good design talents and manufacturers, but why not combine them organically? The key is to build brands, especially top brands, in order to attract local consumers, said Cai Ming.

"'Cultivating a noble family requires three generations of blood exchanges.' Balzac's famous quote also applies to luxury brands. It took France hundreds of years to cultivate the world's familiar Louis Vuitton, Dior, Chanel, Hermès, China. The luxury brand is still too young. Even with excellent cultural heritage, it really needs to grow into a top brand. It may take several generations to complete. The fledgling Chinese luxury brand wants to grow into a top brand. It takes a long way to go." Professor Michel Gutsatz, Director of the MBA and EMBA Program of the College, commented on this.