How Chanel became N°1 luxury fashion brand in China

According to the World Luxury Index™ China, “Chanel has become the #1 most sought-after global luxury brand in China”, overtaking competitors such as Louis Vuitton and Gucci.

Chanel’s beauty products
This year’s report has also revealed that part of Chanel’s success is thanks to its huge stake in beauty segment, as 22.70% of Chinese consumer interest whithin luxury market is in beauty, compared to fashion which accounts 14.90%.
Chanel’s dedication to its beauty products most likely has helped the brand to get the first rank in the report, overtaking Louis Vuitton which is rather focused on fashion.

Chanel has a wide range of beauty products, with celebrities such as Diane Kruger being the latest face of its beauty advertising campaign.

Events & Exhibitions
Another great venture started by Chanel is its “Little Black Jacket Exhibition” tour which is going around the world, including cities such as Beijing and Shanghai. It is not the first time Chanel is hosting an exhibition in China. Its last event was “Culture Chanel” in Guangzhou, which I am looking into further below. In general, events and exhibitions like those ones really push the image of the brand as they have a very special vibe around them and stimulate all senses of the audience, leaving a more lasting impression than any other type of advertising.

1. Chanel’s little black jacket exhibition

Chanel’s little black jacket exhibition in Beijing and Shanghai with celebrtity attendance certainly had a huge impact on Chinese luxury customers and increased the prestige of the brand.

2. Culture Chanel exhibition in Guangzhou (China)

In a collaboration with Jean-Louis Froment, Chanel decided to organise this exhibition which should reinforce the idea of a fusion between art and fashion.

According to Jean-Louis Froment, “this movement is driven by a cultural aura that has surrounded the brand since its very beginnings, embodied by its creator, Gabrielle Chanel, who has created a language all of her own. This language, which is part of the history of women and of all the artistic forms of modernity, has spanned many eras: it has given the brand’s creations recognition that is unrivalled, a quest for excellence and the desire to give these creations the status they deserve.”

Bags and Wallets
Moreover, the report states that bags and wallets dominate the fashion market in China, accounting for almost 90% of total interest. Celine’s “Luggage,” consolidates its iconic status in the mainland as the #1 most popular handbag model, followed by Hermès’ Birkin and Chanel’s 2.55. It is a little surprising that Louis Vuitton is not in the top 3, although it has overall the second rank in the report. Talking to a friend from China lately about this issue, I found out that the typical Louis Vuitton Monogram bag is apparently already too common in China and has lost its exclusivity. On the other hand, Chanel’s vision is to remail an exclusive brand. The creative director Karl Lagerfeld mentions in an interview “We don’t have the urgency to expand. We are an exclusive brand and we want to stay exclusive so it’s strategic to not be everywhere. What we are starting to learn is that like every developed market, the clients there want things other people can’t get. That’s what defines luxury in many ways so we’ve been careful, but in a very calculated way.”

“The original square buckle, Link Check, metal chain strap leather string… Chanel 2.55 was born in February 1955, after half a century of temper, carrying the old tradition and modern innovation, the perfect blend of classic visual appeal and practicality Chanel 2.55 handbag, keen attention by numerous fashion and fashion fanatics worship.”

Chinese brand ambassadors
Celebrity endorsement in China is very important as it gives people someone to relate and to aspire to. Many Western luxury brands use East-Asian embassadors as they can deliver the brand’s messaging better than any other celebrity.

Chanel’s ambassador is a well-known Chinese actress Zhou Xun, who has been selected for her strong fashion sense. Karl Lagerfeld is describing the actress as “a synthesis of young Coco Chanel and Ballet Troupe Zizi Jeanmaire.”

What do you think about Chanel? Do you think its ranking in China is well deserved?
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Tatjana

Fashion Invasion in China – Secrets of Western Luxury Brands

More and more fashion brands have been eyeing China in search for expansion. Until now Chinese consumers have been known for their increasing desire for authentic luxury brands as a mean to show off their rising wealth.

With its successful launch in Hong Kong, TOPSHOP sets not only a milestone to its further expansion in China, but also an example for other high street retailers and high-end labels to follow. Within a few weeks after TOPSHOPs launch, high-street brand New Look announced its plans to launch in China, as well as Hobbs and Paul Smith while Vivienne Westwood and Mulberry are planning to expand their presence in China in search for higher profits.

But which marketing strategies can fashion brands use to achieve success in China? Lets take a look at 3 Western luxury fashion brands who have proved to be marketing experts on Asian grounds. Could you guess who I’m talking about? I think it’s not that difficult: Louis Vuitton, Burberry and Coach.

Louis Vuitton’s Marketing in China

1. Exclusive distribution through flagship stores
2. Educate the population about brand’s heritage (Shanghai exhibition in French pavilion)
3. Adapt product to demand (focusing on mens fashion and gift items such as stationery and luxury writing instruments)
4. Celebrity endorsement (Taiwanese-Canadian model/actor Godfrey Gao as a first ever Asian brand ambassador for the French fashion house aiming to increase popularity and boost sales of man-bags)
5. Collaboration with a renown Japanese artist Yayoi Kusama (this was a very successful venture in terms of marketing as it was impossible to overlook the crazy polka dot pattern in LV flagship stores)

Burberry’s Marketing in China

1. Digital Innovation and Social Media (Simplified Chinese version of Burberry.com as well as collaborations with Social Media platforms such as Sina Weibo, Kaixin001, Douban, YouKu and regional Twitter accounts)
2. Mandarin-speaking sales staff in all European flagship stores
3. Introduction of 24/7 Customer Service in Hong Kong
4. Strong focus on menswear
5. Brand Events (Burberry Live Digital Event in Beijing)

Coach Marketing in China
1. Strong direct presence in Asian market (over 100 stores in China)
2. Focus on mens assortments
3. High investment in consumer research (adapting the goods to consumer preferences)
4. Integration of Social Media (We Chat on its Weibo page)
5. Celebrity collaboration with a pop-star, Leehom Wang.

Having analysed all the three brands, it’s about time to merge their strategies into some conclusions, which can be useful for brands who seek marketing advice on Asian grounds.

1. Familiarise potential customers with your brand
This can be done through diverse events, shows, exhibitions and so on. The idea is that potential customers have to understand first what is so special about your brand. If you can’t pride yourself with a century long heritage, use digital technology to astonish your audience. The greater the event, the more important and luxurious your brand will appear.
2. Analyse the market and your target group
Don’t be frugal with consumer research, as it helps you to understand which products are really in demand. All the above listed brands have adapted their products to the Chinese consumer, introducing gifting items and a wider range of menswear products.
3. Get involved in Chinese Social Media
Chinese are very social people and you need to understand and be able to take advantage of their Social Networks that way you can benefit from it.

4. It all begins in your own country
Many Asians spend a lot while travelling in Europe or in the United States. This is your chance to make an everlasting impression and win them for your brand. Make your stores as tourist-friendly as possible with multi-lingual sales staff and special treatment for VIP customers.

5. Collaborate with Asian celebrities
Many people are being influenced by celebrities. There are lots of Asian pop stars, actors and models who are perfect for collaborations. Just make sure you research well, before picking your celebrities, as endorsement can also go terribly wrong if not used correctly.

These are some of my hot tips to help you invade China with your products.
Please share your thoughts if you had any experience with Chinese market and which marketing strategies you think work best.

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Tatjana