Excellent study by The Boston Consulting Group makes many excellent points about China's consumption of luxury, but I found this graph particularly striking.
Those who come out worst are Chanem, Armani, Praga, Burberry and Max Mara. I wonder how much this is related to the lack of outlets and/or knock off versions of their goods?
As described by BCG, this graph shows:
Although top brands have put considerable effort into nurturing a strong following, such loyalties are still quite fragile. In each of the product categories we asked about, more than 60 percent of survey participants said that they could ï¬ nd suitable substitutes for their favorite brands.
And when we compared the brands that consumers said they preferred with the brands they eventually purchased, we found significant mismatches. (See Exhibit 4.) In most cases, consumers defaulted to the most famous and so-called iconic brands when making their actual purchases.
Our data indicate that some brands win a considerable percentage of their customers at the point of sale by converting uncommitted shoppersâ€"or even competitors' customers. Such a tactic requires excellent sales skills, merchandise at the right price points, and compelling displays. Indeed nearly 30 percent of consumers told us that a window display had been responsible for their purchasing a brand that they hadn't been considering.
Technorati Tags: China, Luxury, Matt Anestis