Recapturing China's Old Nobility

RECAPTURING
中国’S OLD
NOBILITY
Building a Chinese Luxury Brand

Presentation delivered at the China Luxury Summit 2010 in Macau
1
1

China, arguably the world‟s most
important luxury market

2010 © BBDO/Proximity Live China
An Omnicom Group Company. 2

1


Sources: Cap Gemini/Merrill Lynch World Wealth Report, TNS, KPMG, Credit Suisse

2010 © BBDO/Proximity Live China 6
An Omnicom Group Company.

Given the importance of China as a
market, many brands have begun to
acknowledge the country more explicitly

7

Yet, the market for luxury is still
predominantly all about Western brands


So, why aren‟t there enough
Chinese luxury brands?


To answer this, we need to
explore two interrelated themes


1 Besides having „first-mover advantage‟ in
the Chinese luxury market, what can truly
explain the “pull” of western brands?

2
Are there applicable lessons
future Chinese luxury brands
can glean from?

Of Royalty Of Imperial Supremacy
A legacy of serving nobility Allowing them to export their culture; and to
assimilate other countries into their way of life

Of Experience and Expertise
Craft skills and traditions passed along from14
one generation to another

“The King of Jewelers”


“Serving the British Royal Household
for Generations” 16

“Breakfast at Tiffany‟s”


HISTORY
=
GRAVITAS

China, more than any other country,
also has a long and rich cultural
heritage it can truly be proud of


But China‟s is a history that involves a
period of significant social upheaval


Besides the relics we see in museums
today (and what are sold in art auctions)…

…nothing is left of the armies of cooks, couturiers, craftsmen, and
artisans who have served the Imperial household and the scholar
bureaucrats, all of which could have been the seeds of vibrant slew
of Chinese luxury brands


For Chinese luxury brands to emerge in
this modern age, they will have to create
a totally different path to glory…

23

From our research among affluent
Chinese, we have identified six (6)
possible hot-buttons when creating
viable Chinese brands in luxury


1. Get the
Quality
Right


FOCUS ON GETTING
THE QUALITY RIGHT

… The product


1. Get the
Quality
Right

2. Materials
that China
is Proud of


USE MATERIALS
THAT CHINA CAN
BE PROUD OF


Elevating the Product into a Brand

There is a Choice Between …


A Retrospective View
of Chinese Culture
Imbuing the new brand with the values
and aesthetics from a bygone era

Vs.

A Progressive View
of Chinese Culture
Celebrating a new Renaissance of
China

1. Get the
Quality
Right

2. Materials
that China
is Proud of

3. Re-Create
Imperial
Glory


RE-CREATING
IMPERIAL GLORY


“Though China lost lots of
inheritances after the cultural
revolution, but the concept is still
there, the history is still there, so to re-
glorify the history and make China’s
own luxury brands is a very interesting
thing to do and I support it.”
Research respondent


Indeed, there is a much stronger
fascination with one‟s own rich culture
and national identity than ever before


Cultural Clout
A successful and most grand
Olympic Games in Beijing

Economic Clout
Chinese economy‟s continued
expansion amidst global recession

Geo-Political Clout
China‟s acknowledged global
influence; accorded “G2” status
2010 © BBDO/Proximity Live China 38
An Omnicom Group Company.

And along with this strong sense of pride is
the new-found desire to re-capture and re-
build China‟s lost cultural heritage


Brands that are able to tap into this
nostalgic sense of pride will certainly
find its advocates among affluent
Chinese consumers


However, there are those who
embrace a more progressive view of
Chinese luxury; and argue that China
has more to look forward to than
merely re-claiming past glory…


2. Materials
that China
is Proud of

3. Re-Create
Imperial
Glory
4. Introduce
a New Take
on Chinese
Design

INTRODUCE A NEW
TAKE ON CHINESE
AESTHETICS


In the absence of an uninterrupted brand
legacy/heritage to speak of, a new Chinese
design aesthetic could be the starting point
for a truly Chinese luxury brand


Learning from the Japanese‟s Strong
Reliance on Design


How about going to market with a
Chinese luxury brand?


1. Get the
Quality
Right

2. Materials
that China
is Proud of

5. Tap into 3. Re-Create
The West Imperial
Glory
4. Introduce
a New Take
on Chinese
Design

STRATEGIC USE
OF THE WEST


The Paradox
Proud as they are, Chinese
consumers still look to the western
world for cues of acceptance…


“We need to have people of
influence in China who are willing to
spend money to buy and influence
others to buy. In addition to attracting
Chinese, we need to be able to
attract Westerners to love the brand.”
Research respondent


There is a last button, and possibly
the most challenging one…


1. Get the
Quality
Right

6. The right 2. Materials
Brand owner that China
Mindset is Proud of

The West Imperial
Glory
4. Introduce
a New Take
on Chinese
Design

NOT BUSINESS
AS USUAL


“I would worry that the quality cannot
be good, and that the person doing
the brand won’t have a long term
plan that could help build the brand,
and they would give up easily if they
meet any obstacles, and don’t have
a lot of money to sustain it because it
would meet a lot of hardships.”
Research respondent


“Because doing a luxury brand needs a long heritage, good
story, this is not easily done.” Research respondent


“We Chinese investors doesn’t
care about the brand
reputation. They only want to
make money in short time.”
Research respondent


1. Get the
Quality
Right

6. The right 2. Materials
Brand owner that China
Mindset is Proud of

The West Imperial
Glory
4. Introduce
a New Take
on Chinese
Design

Research Methodology

Qualitative research
• Face to Face qualitative research study of China based High
Net Worth Individuals

Respondent profile
• Financial Assets (not including primary residence) in excess of
10MM RMB
• Average age of 38 yrs old - 85% Local Chinese - 15%
Expatriate

BBDO Voices
• Real time monitoring of consumer feedback through a
regular consumer panel. With periodic special editions.

Presented By Angelito Tan
Managing Partner
BBDO / Proximity Live

• Angelito is a communications specialist with over 10 years of
luxury brand experience

• He has developed holistic results-driven strategies for some
of the world‟s top luxury brands, and is considered an expert
in communicating with China‟s HNWIs

• BBDO / Proximity Live is a brand communications agency
dedicated to creating unique and compelling strategies for
luxury and premium brands targeting China‟s HNWIs and
affluent middle class

• Part of Omnicom Group Inc. (NYSE:OMC) and aligned with
the global BBDO Network

All the ideas contained within remain the sole intellectual property of BBDO/Proximity Live. No part of this document can
be reproduced, executed or given to third parties without first seeking the written permission of BBDO/Proximity Live. 65

Recapturing China's Old Nobility

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie Recapturing China's Old Nobility

Ähnlich wie Recapturing China's Old Nobility (6)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Recapturing China's Old Nobility