Luxury Market Tight in China
In China, consumers are primarily interested in things that are ‘obvious status symbols” with easily visible logos from only the top brand, so many companies, even big name ones, are barely breaking even after years in the country. Many high end brands - Cartier, Louis Vuitton, Chanel and Hermèsare all in competition for the same small segment of the population. But the segment of the population that can afford luxury is growing and as the country moves more towards a market economy, they grow more willing to purchase such goods. The retailers are faced with rising costs for labor and rent and a customer base that is more reluctant to purchase luxury items thatn in other countries. So the retailers lesson is to start small and learn the market because it’s probably only a matter of time before more customers start to want to add some luxury to their lives.