Javier Calvar MCMI ChMC’s Post

With the rise of imitation brands, luxury brands must evolve to differentiate themselves and be irreplaceable. Here are some strategies: 1. Elevate Brand Value: Focus on craftsmanship, quality, and authenticity that can’t be replicated. 2. Create Emotional Connections: Use storytelling to build an emotional bond with consumers, making them loyal to the brand. 3. Leverage Local Culture: Integrate local influences and resonate with cultural sentiments for a more personal appeal. 4. Invest in Experience: Move beyond products and focus on creating unique, memorable experiences for customers. 5. Be Transparent: Show a commitment to ethical practices and sustainability to build trust in today’s conscious consumer market.

2024 has seen a notable shift in consumer behaviors driven by economic uncertainty and consumption downgrade trends, especially in the China market. 💵 As consumers become more RATIONAL and VALUE-CENTRIC in spending, they are increasingly drawn to cost-effective alternatives, ranging from mid- and lower-end brands to white-label products without brand logos and “imitation brands”. 🧩 So, what does this mean for luxury brands navigating the Chinese market? Brands need to PROACTIVELY maintain their edge - bring luxury back to its true essence by elevating quality, creativity, storytelling, and services/experiences - in an authentic, relevant, and seamless way, ensuring they stay iconic, irreplaceable, and deeply resonant with the evolving demands of smart consumers. What do you think of the rise of imitation brands? Share your take below.

🐾 Imitation brands are THRIVING in China – how can luxury remain iconic? 2024 has seen a notable shift in consumer behaviors driven by economic uncertainty and consumption downgrade trends, especially in the China market. 💵 As consumers become more RATIONAL and VALUE-CENTRIC in spending, they are increasingly drawn to cost-effective alternatives, ranging from mid- and lower-end brands to white-label products without brand logos and “imitation brands”. While white-label brands offer budget-friendly products by skipping traditional branding and using channels like live streaming and e-commerce to sell directly to consumers, their appeal tends to be short-lived, as flashy promotions and market positioning fail to sustain consumer interest over time. 💥 Meanwhile, "IMITATION brands" are quietly gaining ground as a standout phenomenon. Unlike traditional counterfeit products, these brands emulate the aesthetics and product offerings of luxury names while operating as LEGITIMATE businesses. With branding, visual systems, and even offline presence, they offer style and quality at a fraction of the price to pragmatic, middle-class consumers. 🛍️ Interestingly, this trend is also closely linked to growing consumer CONFIDENCE in DOMESTIC products. The recent Kearney’s China Consumer Research reveals that 52% of consumers intend to increase spending on domestic brands going forward, compared to just 27% for global brands. Amid economic uncertainty, “LUXURY SHAME” has emerged, where consumers shy away from high-end purchases to avoid appearing insensitive to broader socioeconomic conditions. The result? A growing acceptance of “imitation brands” as savvy choices rather than compromises, signaling a major cultural shift.  🧩 So, what does this mean for luxury brands navigating the Chinese market? As I mentioned in my recent posts: Brands need to PROACTIVELY maintain their edge - bring luxury back to its true essence by elevating quality, creativity, storytelling, and services/experiences - in an authentic, relevant, and seamless way, ensuring they stay iconic, irreplaceable, and deeply resonant with the evolving demands of smart consumers. Luxury brands must be agile, carefully assessing their own trade-offs and refining their value positioning in this competitive market. What do you think of the rise of imitation brands? Share your take below. Thanks to Eva Liang at Vogue Business, as well as Kearney for the interesting insights. #Copycat #Authenticity #Luxury #ConsumerBehavior #China

The first aspect Mr. Kaminski brought up was that many brands underestimate the speed in which China operates, versus the speed clients are used to when it comes to reacting to their demands. Most Western brands are simply too slow in providing client-centric solutions. “Many Western brands need weeks to make decisions, sometimes months,” he shared, adding that “By the time they decided on an issue related to China, clients have already moved on, so, essentially, their issue is about speed and processes, in other words, habits.” “Most Western brands still operate in a 'Marketing 1.0' reality, placing the focus on products, while they compete with Chinese brands who are already in a 'Marketing 3.0,' or digital-first, rapid fail-and-learn client-centricity reality,” said Mr. Kaminski. “You can’t compete in a fast-paced client-centric reality when you are too slow in decision-making and focused on products.” #business #marketing #retail

⚡️Sales of international luxury brands in China have seen a significant decline, according to a recent report by Bloomberg This downturn is attributed to a growing shift among Chinese consumers, who are increasingly opting for local, more affordable brands. The changing consumer preferences have notably affected the quarterly earnings of major global luxury players, underscoring a rising preference for domestic labels in one of the world’s most influential consumer markets. #BRICSnews #BRICSFashionSummit #Bloomberg

A highly nuanced look into China's luxury market and some of the key factors that impact its evolution: consumer polarization, local identity, social attitudes, and distribution strategies. Check out the full analysis below

“Support is also growing for domestic brands in Asia, particularly in China and Southeast Asia.” That’s the most important sentence in the article, it’s also an understatement. Every year for the past five years, the top sales holiday performers in China have reshuffled, with Chinese brands regularly moving to the top. The pandemic is long over, but I still hear the same comments on China from international executives: - “Keeping the powder dry” - “Cautiously optimistic” Executives who read articles like this and believe it supports a middle-of-the-road strategy are missing the big picture. Here are three trends that will define the market for the next 10 years: 1. China entrepreneurs will launch amazing homegrown brands to satisfy demand where international brands underinvest. 2. China funds will buy international brands that belong in China. 3. Established Chinese brands will launch in your backyard. Every day your brand is not loud in China, you are giving ground to your replacement. Your replacement will be a great Chinese brand selling products of comparable or better quality at a better price point, a brand that took advantage of your absence. I don’t advocate for irrational investment. I advocate making sure an intelligent budget delivers a punch. Be loud and proud about your activity in China. Louis Vuitton just had a great event on the Bund the same weekend as the Chinese Grand Prix, while a number of other luxury brands canceled their China 2024 events. LV was right; the other brands were wrong. Think long-term, be focused, be fun, and make sure you have fun yourself! Follow me to stay on top of trends and brands emerging from China. #KulturShift #SocialCommerce #ChineseBrands #China

The China market, particularly in the retail space, has been a topic of conversation lately. Several people asked me about it over the weekend, and it's true: 2024's numbers haven't been inspiring, and the challenges extend beyond just retail. Every time I travel to China, I can't help but wonder where all the customers are. The empty shopping malls are a striking sight. Yet, there is undeniable activity still. Many brands continue to see China as a land of untapped potential. This article highlights a few encouraging trends we're seeing, offering a glimmer of optimism for the industry in the year ahead. Trends 1. Luxury Lifestyle & experiences 2. Shopping destinations 3. Preferences for domestic brands 4. Sustainability and secondhand luxury (uprise of "vintage") As we look to close off the year, what is your take on 2025? https://lnkd.in/gBt26kgC Selina Huang Amy Zhang Chiaw Sang Tan （陈乔尚）Doris Wan Austin DONG Sharon Li Leslie Tang

China's Luxury Revival: A Waiting Game for European Brands? 🇨🇳💅👑 POST 1 of 3 Will China's recent economic stimulus measures boost demand for European luxury goods? Swetha Ramachandran, fund manager at Artemis, shares her insights: Key Takeaways: 📝 - No immediate uplift expected for European luxury brands ⏱️ - Chinese consumer preferences shifting rapidly, prioritizing value over price 📊 - Local brand preference strong in sportswear and mass market cosmetics, but European luxury brands maintain desirability 💁♀️ - Household deposits at record highs, savings rates enormously high 📈 Stats: 📊 - China's household deposits: $2.4T (record high) 💸 - Savings rate: 33% (highest in 20 years) 📊 - Luxury goods market growth: 10-15% (pre-pandemic), -10% (2022) 📉 Expert Insights: 💡 "Animal spirits" needed to revive consumer confidence 🐯 Property market stabilization crucial for consumer spending 🏠 Targeted policy measures show promise, but patience required 🕰️ Outlook: 🌟 European luxury brands face challenges, but: - Polarization favors high-end brands offering true value 💎 - Desirability remains high among Chinese consumers ❤️ - Golden Week data points show tentative positive surprise 🎉 Join the conversation! 💬 Share your thoughts on China's luxury market revival. #LuxuryGoods #ChinaEconomy #EuropeanBrands #ConsumerPreferences #MarketTrends #EconomicStimulus #SavingsRate #HouseholdDeposits #LuxuryMarket #FinancialInsights #MarketAnalysis

🛍️ Navigating Luxury's Uncertain Future in China As China's consumer confidence wavers, the #luxury market faces an uncertain future. Claudia D'Arpizio aptly points out, "With consumer confidence going down, there’s overall uncertainty in the future." Even though we may still see single-digit growth in luxury consumption within Mainland China, the reality remains challenging. While the road ahead may be complex, those #brands that can navigate these challenges with agility and foresight will find themselves at the forefront of a new luxury era in #China. Read the full article in Vogue Business https://lnkd.in/dS_d_D8p #LuxuryMarket #China #ConsumerTrends #BrandStrategy #Innovation