Chanel has become the most sought-after global luxury brand in China, according to the World Luxury Index.
The brand overtook Louis Vuitton thanks to rising interest in various product segments, particularly beauty. Interest in Louis Vuitton on the other hand originated mainly from the fashion segment, accounting for almost three-quarters of total interest in the brand.
“Louis Vuitton has reported a disappointing first quarter, while brands from different segments ranging from Chanel to Coach or Burberry are continuing to grow,” said Digital Luxury Group founder and CEO David Sadigh.
“Though rapidly evolving, the Chinese market is still developing. In order to stay ahead of the game, brands must have the ability to adapt quickly thus reducing the risk of brand saturation. In the case of Louis Vuitton, LVMH has already shifted gears, putting the brakes on its global expansion, whilst raising prices and developing more leather upmarket products.”
The World Luxury Index, which ranks and analysis the most sought-after luxury brands in China, was commissioned by Digital Luxury Group in partnership with Luxury Society.
This year’s report reveals that Chinese consumer interest in the luxury market is dominated by the heavyweights: cars (53.50 per cent), beauty (22.70 per cent) and fashion (14.90 per cent).
New brands to enter the Top 50 are Elizabeth Arden and Rado, whilst Salvatore Ferragamo and Moncler dropped out.
“Many brands expected that an increase in Chinese sophistication would reduce the cultural gap with their overseas consumers,” says Digital Luxury Group GM Pablo Mauron.
“In some cases, it actually contributed to the development of unique local preferences, independent from Western tastes, thus challenging luxury brands in terms of product offering but also opening up the way for new opportunities to grow in the Chinese market.”
In fashion, the top three most sought-after brands are: Chanel, Louis Vuitton and Gucci. Giorgio Armani is the fastest growing, up 17 spots since last year. Bags and wallets dominate the fashion market in China accounting for almost 90 per cent of total interest.
In cars, Audi and BMW maintain their leadership in the luxury car segment. Lexus (ranked third), breaks the German trio, moving ahead of Mercedes (now 4th).
While in beauty, Estée Lauder, Lancôme and Dior retain their spot as the three most desired beauty brands in the Chinese market. Skincare accounts for almost 60 per cent of all beauty searches. American beauty brands Estée Lauder and Clinique are popular with skincare products, whilst European brands Dior and Chanel are more popular for fragrance.
For watches, Omega, Rolex and Longines lead the Chinese luxury watch segment. Classic, elegant models dominate Chinese consumer interest lead by Omega’s De Ville, which becomes the number one most sought-after model (up three spots).
Meanwhile in the jewellery market, the top three leaders consolidated their stronghold accounting for almost 90 per cent of total interest, led by Chinese brand Chow Tai Fook, Cartier and Swarovski. Rings are the most sought-after jewellery product, representing over half of all searches, in majority for Cartier and Tiffany & Co.
