Advertisement

Paths For The Emergence Of Global Chinese Luxury Brands

  • Jonas Hoffmann
  • Betina Hoffmann

Abstract

China’s luxury goods market will be worth an estimated US$ 27 billion by 2015, representing 20 percent of global luxury sales.1 As observed in other sectors in China, the speed at which the market took off is impressive. Louis Vuitton entered the market 20 years ago, has currently more than 40 stores in China and is opening more at a fast pace.2 No surprise that (Western) luxury groups are in great shape, reporting double-digit growth and profits. This market big bang has been a bonanza for Western luxury conglomerates and companies and their commercial partners in Hong Kong and mainland China. Strong growth and high profit margins have of course attracted newcomers, but no local brand exists so far to challenge the likes of Louis Vuitton, Hermès, Gucci or Prada in China, and even less abroad. Given China’s economicgrowth, rich craftsmanship tradition and growing availability of financial and managerial competences, there are grounds for such a development.

Keywords

Business Model Moon Phase Luxury Brand Luxury Product Luxury Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

NOTES

  1. McKinsey & Company (2011), Understanding China’s Growing Love for Luxury.Google Scholar
  2. Moingeon, B. and Lehmann-Ortega, L. (2010), “Creation and Implementation of a New Business Model: A Disarming Case Study”, M@n@gement, 13(4): 266–297CrossRefGoogle Scholar
  3. Hoffmann, J. and Hoffmann, B. (2012), “The PIER Framework of Luxury Innovation”, in Hoffmann, J. and Coste-Manière, I. (eds), Luxury Strategy in Action, London: Palgrave Macmillan.Google Scholar
  4. Chesbrough, H. and Rosenbloom, R. S. (2002), “The Role of the Business Model in Capturing Value from Innovation: Evidence from Xerox Corporation’s Technology Spinoff Companies”, Industrial and Corporate Change, 11(3): 529–555.CrossRefGoogle Scholar
  5. Birindelli, F. G. (2012), “Luxury Business: Multinational Organizations and Global Specializations”, in Hoffmann, J. and Coste- Maniére, I. (eds), Luxury Strategy in Action, London: Palgrave Macmillan.Google Scholar
  6. Quintavalle, A. (2012), “Retailing in the Luxury Industry”, Hoffmann, J. and Coste-Manière, I. (eds), Luxury Strategy in Action, London: Palgrave Macmillan, pp. 74–107.Google Scholar
  7. Pizzini, G. (2012),“Financial Survival Guide: Value Creation and Piña Coladas”, Hoffmann, J. and Coste Maniére, I. (eds), Luxury Strategy in Action,London: Palgrave Macmillan.Google Scholar

Copyright information

© Jonas Hoffmann and Betina Hoffmann 2013

Authors and Affiliations

  • Jonas Hoffmann
  • Betina Hoffmann

There are no affiliations available

Personalised recommendations