The Bergstrom Group is an insights and trends consultancy helping marketers understand and connect with Chinese consumers. Through thoughtful research, rich narratives and actionable insights, we are helping to tell the story of new China.

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THE LUXURY BRAND
PHENOMENON IN CHINA
PERSPECTIVE
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2. INTRODUCTION Luxury is making some big
moves in China. As analysts juggle the numbers to
determine the market potential, we are pausing to
appreciate the changing notions of luxury among Chinese
youth. Past blindly following formulaic expressions of
wealth, many youth are looking for less expected ways to
express status and tell their peers that they are “worth it.”
Photos thanks to trendspotter:
Zhouwei.
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3. Luxury Brands’ Digital Strategies
Rated
Even though Chinese spend more time online than
most of their international peers, brands in China have
been slow to organize and execute their stories online.
1. Lancôme led the way by being localized,
leveraging Baidu and managing its own community
“Rose Beauty” launched in 2006 and now claiming 4
million users.
2. BMW rated second, developing a driver’s club
online counting 150,000 members.
3. Cosmetics brand Estée Lauder tied BMW by
creating their own China-specific site with content
about products and celebrities.
And some more obvious Chinese favorites…
19. Louis Vuitton
27. Gucci
To see the report:
http://www.l2thinktank.com/chinadigitaliq/L2_China_Digital_IQ.pdf
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4. A cake at Wow! Cake could be 6,000 Yuan and a 6’’ big
LV bag cake is 760 Yuan. (Wow! Cake set up its store
in Shanghai in 2009. )
Jillion, as
in you got
to have
one to
afford
one, is
one of the
many luxu
ry car May, 2010, Salvatore Ferragamo released
dealership its new series, including bags, purses and T-
s in shirts, with Chinese artist Xue Song at
Shanghai. Ferragamo’s store in Shanghai.
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5. Is Luxury Only About
Brands?
Notions about what is luxurious are
changing. A luxury item for a consumer
isn’t always a commonly understood
luxury brand. What makes an item
luxurious is how it makes the consumer
feel and what it says to the outside world.
As a super fan of Bruce Lee, Clear
(trendspotter, 24, male, Beijing, independent
director) has spent 3 years collecting more than
30 toys in his hero’s image. He sees his
collection as luxury items because on one hand,
each toy costs over 2000 Yuan; on the other
hand he believes that Bruce Lee is a brand.
To see the post, click here.
www.thebergstromgroup.com telling the story of new China

6. I have heard about Paris for so long that when you say luxury, I think of Paris fashion and dessert.
– Cynthia, 23, female, Shanghai, executive assistant
Cosmetics products from France are very good, expensive and 100% natural.
– Kiki, 27, female, Shanghai, boutique sales
I think most people will associate France with luxury because it is just so classic. I think they have the
techniques to design great brands.
– Jay, 24, male, Nanjing, travel agent
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7. Made-in-China Luxury
Take-away: Respondents had faith in the
techniques and processes used in made in
China but didn’t trust how brands treat
Chinese consumers.
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8. To be honest, I’m not sure how many
luxury brands are actually made in their
own countries. A lot of them are made in
China but why do we still have to pay
much more compared to the consumers
overseas?
– Winnie, 23, female, Shanghai, HR
representative
When I think of things made in China, I
associate a lack of delicacy, customization,
and good after-sales service.
– Sophie, 22, female, Shanghai, PR
Brands don’t sell their best quality goods
to Chinese, even if they are made here.
Contrary to the Japanese, we send our
best goods to other countries, and the left-
overs and poor quality items are left here
to be sold.
– Cynthia, 23, female, Shanghai, executive
assistant
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9. Designed-in-China items?
Take-away: While Chinese design may be good, our respondents are
still undecided if Chinese design is valuable (worth a luxury price tag).
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10. Pros:
It doesn't matter whether at home or abroad as long as the design of the product is special and unique.
– Sophie, 22, female, Shanghai, PR
Designed in China would be sold overseas but not necessarily in China. But I believe we can design. I
would buy high-end Chinese brands. I support Chinese goods.
– Cynthia, 23, female, Shanghai, executive assistant
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11. Cons:
I’m not a fan. I think we are good at making but not good at designing. We are short on creativity, I’m
afraid.
– Jay, 24, male, Nanjing, travel agent
I don’t know of any but I don’t think I would buy it anyway. A luxury brand needs time to prove its value.
What’s more, I believe western brands have better design.
– Lena, 25, female, Shanghai, computer programmer
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12. ..
ABOUT US
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13. OUR STORY
Established in 2006, The Bergstrom Group has developed a reputation for
providing vivid customer immersions for brands and agencies. We began our
commitment to China by focusing on youth and have since broadened our scope to
include women and lower tier consumers.
Based in Shanghai, our on-the-ground team of subject matter experts, researchers,
trendspotters and photographers is dedicated to telling the story of new China in a
way that is both authentic and actionable.
www.thebergstromgroup.com telling the story of new China

14. GET CLOSER
www.thebergstromgroup.com
info@thebergstromgroup.com
www.thebergstromgroup.com telling the story of new China