Chinese Premium Brands Ride Experience Consumption to Challenge Luxury Leaders

Chinese premium brands are accelerating in the luxury market by targeting experience consumption and the patriotic buying trend known as guochao. According to Hankyung, LVMH chairman Bernard Arnault visited Chinese brands Songmont and Laopu Gold during a China trip last September instead of focusing on Louis Vuitton and Dior stores. Laopu Gold’s revenue rose 221% last year to 27.3 billion yuan, about 5.9 trillion won, surpassing Hermès sales in China. By contrast, Kering’s global revenue fell 13%, while LVMH operating profit declined 9%. Brands such as Bosideng have expanded from rapid growth in China into Europe. Bain & Company said Chinese luxury brands are building premium images with lower prices, refined manufacturing and localized marketing. Source: hankyung.com