All brands are crafting strategies and plans to conquer China. After all, it’s a vital market for many, if not all. But there are some rather “common” mistakes that are made by brands trying to penetrate the local market, say experts and operators. And only few brands are in the condition to wait before seeing the results of the investments made. The majority of brands want them right away, even during this pandemic. But it’s not as easy as it sounds, and there aren’t just foreign brands.
The mistakes to avoid
The main mistake made by brands is the assumption that there aren’t that many advanced and expert consumers in China, explained Daniel Langer, CEO of Équité (a consulting agency for luxury brands), to Jing Daily. “Managers of Western brands have the wrong idea of what Chinese consumers want – he says -. Many erroneously think that all Chinese consumers are focused on status and that having a large logo is what attracts them”. Opposite to that, Mr. Langer explains that a brand, in order to conquer China, must “become a great storyteller”. In this regard, “many luxury brands tend to fail”.
The news sources indicates 12 moves that luxury brands should make to develop their presence in China. First, is “completing the digital transformation”. Then, the brand needs to establish a reputation. Tom Griffiths, commercial director of VERB China, which has among its clients Alexa Chung and Jimmy Choo, (in photo is a recent Instagram post by him), believes that focusing on brand relevance in China, rather than elsewhere, will be vital to do well in 2021. According to him, there will also be a luxury brand competing at a global level before 2023. At that point, it will be even more difficult and challenging for a new brand to approach the Chinese marketplace: competition will be higher than ever. In conclusion, China may be favorable, but not for all.