Luxury ‘Made in China’

According to consulting firm McKinsey, China’s portion of the world’s luxury market will – at US$27 billion – will account for 20 per cent of the entire global market by 2015.

But until now, most goods falling in the luxury category have foreign labels.

This may soon change if pride and patriotism begin grow amongst the very few Chinese who are not only very rich but also very sophisticated.

Head of Shanghai-based luxury communication agency ReuterPR, Chloe Reuter, focuses on this tendency in the upper echelon of shoppers. “They won’t go near the bling and show-off-image promoted by certain Western brands.”

Still, according to analysts, upscale Chinese brands still have a market share of just about five per cent. The promotion of home-grown brands is an uphill struggle as they try to compete with foreign brands.

The modern China is a mass-market economy – the sophistication and quality associated with trend-setting are not the foremost selling points.

But according to Armoudom from ATKearney this may change as those born in the 1980s and later have more exposure to better-quality Chinese products and will prove more confident about purchasing them.

Between 15 and 20 local labels are now in the luxury market. The products cover the range of fashion, cosmetics, watches and jewelry.

Marketing of these products aims at replacing the image of mass-produce with a craftsmanship, aesthetics, and quality consciousness that go far back into the Chinese past. In other words, culture goes into fashion in this developing trend.

The makers claim to pass on ancient techniques and materials for producing high-grade products for the modern economy. The brands include such names as distiller Wenjun, cosmetics maker Herborist and fashion designer NE Tiger.

Wenjun liquor is sold in bottles with the shape of an ancient Chinese lute, with the British Hennessy bottle designer hired for the job.

Herborist draws on ancient Chinese botanical science which includes traditional herbs in the production of their cosmetics.

NE Tiger haute couture develops high fashion design wear for gala and wedding wear by researching techniques in remote villages, such as the Yun brocades with their interwoven strands of gold threads.

Another designer of luxury clothes, Guo Pei, makes tradition in the centerpiece of her 2012 collection. She pays attention to the year itself – the Year of the Dragon, her designs including gold and red dresses with scales.

Guo focuses wholeheartedly on the Chinese heritage of images and stories, which she uses to turn attention in the upscale market away from Chanel clothes and Bordeaux wines.

Partner with consultants ATKearney, Pascal Armoudom: “For thousands of years, ‘Made in China’ was synonymous with an unparalleled level of quality and craftsmanship.”

Now as the impact of the Cultural Revolution fades into history, China may one day rekindle that reputation of old. 

GB

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