Market of Asia
https://atlassociety.org/commentary/commentary-blog/5437-the-asia-luxe-explosion
The Asian market has become vital for the growth of designer brands. In Tokyo, 94% of women in their 20s own a Louis Vuitton bag. Hong Kong boasts more Gucci and Hermes stores than Paris. China’s passion for luxury has grown with such gusto that the Chinese consumer is already responsible for 10% of global luxe sales. And, in India, there are three-month waiting lists for the latest trendy accessories.
In the last two decades a “luxeplosion” has been rocking Asia, carrying in its sweep not just the wealthy but also secretaries toting their Burberry bags, junior executives sporting Rolex watches, and university students strutting in Salvatore Ferragamo shoes. Luxury brands have become an everyday reality for millions of Asians.
The luxury brand cult is so powerful that Asian consumers account for half of the US$80 billion global luxe industry. Europeans have more money and Americans are among the wealthiest consumers in the world, but it is Asians who are the world’s biggest consumers of luxury brands.
Asians are using luxury brands to redefine their identity and social position.
In Asia, you are what you wear.
Many Asians of moderate means are spending their way up the social hierarchy, often in amounts out of line with their income. Office ladies in Hong Kong or junior executives in Shanghai will blow a month’s salary on a luxury purchase, even if it means living on instant noodles for a while.
Many Asians of moderate means are spending their way up the social hierarchy, often in amounts out of line with their income. Office ladies in Hong Kong or junior executives in Shanghai will blow a month’s salary on a luxury purchase, even if it means living on instant noodles for a while.
The prospect of attracting wealth with a show of wealth is probably more important to younger people. A report on India luxury market the luxe industry in China by KPMG found that consumers tend to be between 20 and 40, while in western countries, typical luxe consumers are over 40.
The luxe industry has adapted to the Asian psyche by tailoring its marketing strategies: visibility is a key element. Consider the “logofication” trend, where bags have instantly recognisable symbols in a continuous pattern all over the bag—Gucci G’s, Fendi F’s or the LV monogram. Twenty years ago few brands carried logo lines, but the rise of the Asian consumer has pushed almost every brand to introduce one. Coach’s spectacular success in Japan happened after it developed a distinctive signature series. Across the industry, logo lines have grown so fast that they account for up to 80% of sales for some brands.
The luxe industry has adapted to the Asian psyche by tailoring its marketing strategies: visibility is a key element. Consider the “logofication” trend, where bags have instantly recognisable symbols in a continuous pattern all over the bag—Gucci G’s, Fendi F’s or the LV monogram. Twenty years ago few brands carried logo lines, but the rise of the Asian consumer has pushed almost every brand to introduce one. Coach’s spectacular success in Japan happened after it developed a distinctive signature series. Across the industry, logo lines have grown so fast that they account for up to 80% of sales for some brands.
Luxe brands are investing in building other sets of visual identification points. Besides its well-known intertwined C’s logo, Chanel has a whole symbolic language to draw upon—gold chains, quilted leather and signature tweed. In the case of Hermes’ highly sought after Birkin and Kelly bags, the distinctive shape and design of the bag has become its symbol. The waiting list in some places is as long as three years.
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Dolce & Gabbana Asia
Xiang Kai, a director and writer based in Shanghai, burned more than US$20,000 worth of Dolce & Gabbana products, including coats, a vest and bags. A previous fan of the brand, he said he also threw his shoes and watches from the label in the trash.
“The purpose of burning my clothes is to awaken the Chinese people and the Chinese nation,” said Xiang, who posted photos online of his products in flames. “Some people say you’ve wasted a lot of money. I’m willing to waste this money for the nation’s dignity.”
He was among an untold number of people who have revolted against the Italian fashion brand that built its reputation on the ability to make Sicilian widows’ weeds sexy. Earlier this week, the company released video clips widely seen as racist, pandering to old stereotypes (they featured a Chinese model being taught to eat spaghetti, pizza and a cannoli with chopsticks) in advance of a planned extravaganza of a show in Shanghai. Then Stefano Gabbana, a company co-founder and designer, appears to have engaged in a bout of insulting name-calling (including suggesting that the Chinese eat dogs) with a critic on Instagram. Gabbana said his account was hacked.
Within four days after the show the brand has:
— Been forced to cancel the show
— Been excoriated by the Chinese celebrities and models slated to walk in the show
— Been the subject of videos of consumers burning, destroying and otherwise renouncing their Dolce products
— Had their physical locations altered, with the label’s storefronts plastered with “Not me” posters mocking Gabbana’s response to the scandal
— Disappeared from the site of Chinese e-tail giant Alibaba’s TMall platform as well as jd.com, secoo.com, and department store Lane Crawford, which said customers had been returning the brand’s products
— Been excoriated in the fashion press and the fashion enthusiast communities, with particularly passionate coverage coming from fashion industry watchdog Diet Prada
— And increasingly been abandoned by its European and American supporters, including the influencers the brand has expensively wooed over the last few years.
Net-a-Porter, the luxury e-tailer headquartered in London and owned by Richemont, has removed all Dolce products from its Chinese website. Lucky Blue Smith, a model/influencer with 3.2 million followers on Instagram who has become a millennial Dolce staple, posted a note on his account explaining his decision to skip the show that read in part, “We are all gods children and we should all be treating EVERYONE, EVERY CULTURE with respect. I will be back to China soon – love you all so much.”
And apparently fearful of damage by association, fellow Italian brand MaxMara made a proactive statement Thursday on its WeChat account, stating “China, you’re the best! I love you, homeland!”
Cavender, the analyst, was not so sure. “The reality is this is probably going to kill growth for them,” he said.
The Asian market has become vital for the growth of designer brands. In Tokyo, 94% of women in their 20s own a Louis Vuitton bag. Hong Kong boasts more Gucci and Hermes stores than Paris. China’s passion for luxury has grown with such gusto that the Chinese consumer is already responsible for 10% of global luxe sales. And, in India, there are three-month waiting lists for the latest trendy accessories.
In the last two decades a “luxeplosion” has been rocking Asia, carrying in its sweep not just the wealthy but also secretaries toting their Burberry bags, junior executives sporting Rolex watches, and university students strutting in Salvatore Ferragamo shoes. Luxury brands have become an everyday reality for millions of Asians.
The luxury brand cult is so powerful that Asian consumers account for half of the US$80 billion global luxe industry. Europeans have more money and Americans are among the wealthiest consumers in the world, but it is Asians who are the world’s biggest consumers of luxury brands.
Asians are using luxury brands to redefine their identity and social position.
In Asia, you are what you wear.
Many Asians of moderate means are spending their way up the social hierarchy, often in amounts out of line with their income. Office ladies in Hong Kong or junior executives in Shanghai will blow a month’s salary on a luxury purchase, even if it means living on instant noodles for a while.
Many Asians of moderate means are spending their way up the social hierarchy, often in amounts out of line with their income. Office ladies in Hong Kong or junior executives in Shanghai will blow a month’s salary on a luxury purchase, even if it means living on instant noodles for a while.
The prospect of attracting wealth with a show of wealth is probably more important to younger people. A report on India luxury market the luxe industry in China by KPMG found that consumers tend to be between 20 and 40, while in western countries, typical luxe consumers are over 40.
The luxe industry has adapted to the Asian psyche by tailoring its marketing strategies: visibility is a key element. Consider the “logofication” trend, where bags have instantly recognisable symbols in a continuous pattern all over the bag—Gucci G’s, Fendi F’s or the LV monogram. Twenty years ago few brands carried logo lines, but the rise of the Asian consumer has pushed almost every brand to introduce one. Coach’s spectacular success in Japan happened after it developed a distinctive signature series. Across the industry, logo lines have grown so fast that they account for up to 80% of sales for some brands.
The luxe industry has adapted to the Asian psyche by tailoring its marketing strategies: visibility is a key element. Consider the “logofication” trend, where bags have instantly recognisable symbols in a continuous pattern all over the bag—Gucci G’s, Fendi F’s or the LV monogram. Twenty years ago few brands carried logo lines, but the rise of the Asian consumer has pushed almost every brand to introduce one. Coach’s spectacular success in Japan happened after it developed a distinctive signature series. Across the industry, logo lines have grown so fast that they account for up to 80% of sales for some brands.
Luxe brands are investing in building other sets of visual identification points. Besides its well-known intertwined C’s logo, Chanel has a whole symbolic language to draw upon—gold chains, quilted leather and signature tweed. In the case of Hermes’ highly sought after Birkin and Kelly bags, the distinctive shape and design of the bag has become its symbol. The waiting list in some places is as long as three years.
----------------------------------------------------------------------------------------------------------------------------------------
Dolce & Gabbana Asia
Xiang Kai, a director and writer based in Shanghai, burned more than US$20,000 worth of Dolce & Gabbana products, including coats, a vest and bags. A previous fan of the brand, he said he also threw his shoes and watches from the label in the trash.
“The purpose of burning my clothes is to awaken the Chinese people and the Chinese nation,” said Xiang, who posted photos online of his products in flames. “Some people say you’ve wasted a lot of money. I’m willing to waste this money for the nation’s dignity.”
He was among an untold number of people who have revolted against the Italian fashion brand that built its reputation on the ability to make Sicilian widows’ weeds sexy. Earlier this week, the company released video clips widely seen as racist, pandering to old stereotypes (they featured a Chinese model being taught to eat spaghetti, pizza and a cannoli with chopsticks) in advance of a planned extravaganza of a show in Shanghai. Then Stefano Gabbana, a company co-founder and designer, appears to have engaged in a bout of insulting name-calling (including suggesting that the Chinese eat dogs) with a critic on Instagram. Gabbana said his account was hacked.
Within four days after the show the brand has:
— Been forced to cancel the show
— Been excoriated by the Chinese celebrities and models slated to walk in the show
— Been the subject of videos of consumers burning, destroying and otherwise renouncing their Dolce products
— Had their physical locations altered, with the label’s storefronts plastered with “Not me” posters mocking Gabbana’s response to the scandal
— Disappeared from the site of Chinese e-tail giant Alibaba’s TMall platform as well as jd.com, secoo.com, and department store Lane Crawford, which said customers had been returning the brand’s products
— Been excoriated in the fashion press and the fashion enthusiast communities, with particularly passionate coverage coming from fashion industry watchdog Diet Prada
— And increasingly been abandoned by its European and American supporters, including the influencers the brand has expensively wooed over the last few years.
Net-a-Porter, the luxury e-tailer headquartered in London and owned by Richemont, has removed all Dolce products from its Chinese website. Lucky Blue Smith, a model/influencer with 3.2 million followers on Instagram who has become a millennial Dolce staple, posted a note on his account explaining his decision to skip the show that read in part, “We are all gods children and we should all be treating EVERYONE, EVERY CULTURE with respect. I will be back to China soon – love you all so much.”
And apparently fearful of damage by association, fellow Italian brand MaxMara made a proactive statement Thursday on its WeChat account, stating “China, you’re the best! I love you, homeland!”
Cavender, the analyst, was not so sure. “The reality is this is probably going to kill growth for them,” he said.
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