Shifts in luxury brands and the changing China forces

Shifts in luxury brands and the changing China forces

Business expansion is a vital strategy for success and domination in the dynamic market. However, market analysts need to have the correct statistics on consumer behaviors and trends for businesses to maximize their profits in the intended markets. The modern China has experienced a shift in their taste for luxury goods and fashion, with a majority of them spending a fortune on specific brands. Strategists consider the ballooning appetite for brand-taste products as an opportunity for growth and influence in China.
Despite the opportunities in the Chinese markets, renowned brand players are cutting back on their expansion strategies in the region. Alternatively, they focus on improving their services in their existing outlets. The statistics are pretty much convincing that the consumers in China prefer to make purchases of the luxurious brands abroad due to the many factors, such as the relativity in prices. For instance, Chinese shoppers spent approximately $8.5 billion on the purchase of fancy goods in oversea countries within a single month. Similarly, the psychological need of a retail experience infatuates the consumers’ need for buying from oversea countries.
Gucci, Louis Vuitton, and Hermes are some of the renowned brands that used to enjoy a greater share of the luxurious market through expansion. However, the market’s growing appetite for new brands places them at a disadvantageous position. The modern Chinese consumers explore on different new marques, overlooking the famous and existing players in their market.

Therefore, expansion in China market will not be a feasible and profitable venture due to the brand saturation. Nevertheless, new entrants have the advantage to tap into the market.
In the above analysis, it, therefore, prudent for the established brand players to focus on their existing outlets in China. The consumer behaviors in China render expansion as an uneconomical strategy for LV or Gucci because of their overexposure.