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Case Title:

Luxury Brands in China: Profiting from Scale

Publication Year : 2008

Authors: Sushma, Muthu Kumar

Industry: Retailing

Region:China

Case Code: BBP0102

Teaching Note: Available

Structured Assignment: Available

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Abstract:
China's 1978 economic reforms helped boost its economic growth and in turn, the income levels there. China's demography too changed - with thousands of millionaires and a growing middle class coming up. All this had an impact on the country's luxury industry, whose growth is expected to jump from 1% in 2000 to 29% by 2015, making it the largest market for luxury brands. However, China is a complex cultural market.

Pedagogical Objectives:

    The case study helps students:
  • Analyse the impact of China's economic reforms
  • Discuss the growing demand for luxury brands
  • Assess Chinese consumer behaviour
  • Discuss various strategies
  • Analyse the challenges for players.

Keywords : Luxury Brands; Counterfeiting; Luxury Retailing; Tourism and Luxury Industry; Brand Image; L'Oreal; LVMH; Competition; Critical Success factors; Market Entry Strategies; Consumer Behaviour; Industry Analysis Case Study; Industry Dynamics; Brand Building; Challenges for Luxury Goods Companies

Contents:

  • China's Economy: Growing Middle-class Consumers and the Evolution of Luxury Customers
  • China's Luxury Market
  • Luxury Brands in China
  • Challenges

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