POLS 3620 Contemporary Europe and Asia Presentation - How do the French luxury products reflect the interaction between France and China?

1.  What are the French luxury products?
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2. FASHIONABLE
SUCCESS
HIGH SOCIAL STATUS
ELEGANTE RICH
FAMOUS
HIGH CLASS
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3.  How does the French luxury products influence the society of
China?
i. A medium to show off the purchasing power in China
– A change in the more individualistic value system
• One child policy → the 2nd generation of wealth
– A culture of “face”
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4.  How does the French luxury products influence the society of
China?
ii. A way to raise up their social status
– The desire for enhancing their soical status and visibility by
an association with famous brand names.
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5.  How does the French luxury products influence the society of
China?
iii. A medium to impress others
– An embedded gift-giving culture in China
• Chinese bureaucracies system, giving gifts to those who
helped you to set up your business
• 28% of the luxury consumed for speacial gift for
commercial relations.
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6.  How does the Chinese culture influence the French luxury
products?
i. Chinese culture in the French luxury goods
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7.  How does the Chinese culture and values influence the French
luxury products?
ii. Chinese Traditional values are added in the design of French luxury
goods
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8.  How does the French luxury product influence the Chinese
culture?
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9.  Luxury market in China
 13.5% Chinese can afford
 Traditional business elite
 New luxury shoppers
 More than 2 billion a year
 Expected grow 10% annually until 2015
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10.  How luxury goods trading between France
and China change France?
 Earn more money: China is the 3rd of the luxury
goods consumer ranking
 Relocating their factories to China
 Seen China as dumpling ground for
out of season’s product
 More and more brands produce their
product base on the Chinese style
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11.  How French luxury goods change China?
 More reliable on luxury goods
 Growth of GDP
Rise of COUNTERFEIT INDUSTRY
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12. French response…
 Price of luxury goods rise since the demand
rise
 Start to realize “China trap” and some refuse to
set up company in China
e.g. Cartier
 More cooperation with China
e.g. Action Plan in 2009
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13.  How counterfeit industry influence France?
 Loss of profit
 Damage in reputation
 Anti-counterfeit
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14.  How counterfeit industry influence China
 Undermined China’s “world factory” status
 Loss of confidence of the foreign
 Loss of confidence of the Chinese too
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15.  Except counterfeit, there are still other
economic interaction on luxury market
 Partnership and joint venture
 Cooperation in training
 Growth of domestic brands
 Spring board to other Asian market
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16.  China’s open door policy open the door for the
luxury industry
 The luxury industry drive the interaction between
western and Chinese since the new born wealthy
class are unsophisticated in luxury lifestyle
 However, the new born Chinese market has side
effect on the traditional luxury industry
 Thus, the interaction between France and China on
the luxury market still continues…
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