China’s luxury market has been besieged this year by government crackdown on corruption and a trend toward less conspicuous consumption. Some luxury brands have seen a downturn in their businesses, particularly luxury watchmakers, while other luxury brands have seen continued growth despite market changes.
Christian Dior is one of those brands whose “prospects in Mainland China remain bright.”
Chief executive officer Sidney Toledano told WWD, “Our position in China is strong both in terms of image and market share gain, so I remain very confident regarding China, as far as Christian Dior Couture is concerned. We have not been affected by the [crackdown on] gifting.”
Why? A lot have to do with brand position, the products the brand sells, and its target demographic.
According to Toledano, Dior mainly sells products for personal use like women’s dresses. “On the men’s side, we are younger and more fashionable and edgy, so we are not part of the political thing,” he said. “As far as Dior is concerned, we have positioned ourselves well.”
“Wealthy and young Chinese people have a level of knowledge and an appetite for learning about brands, their tradition, history, know-how and quality,” he noted. The “Esprit Dior” exhibition, which was held at the Museum of Contemporary Art in Shanghai from Sept. 13 to Nov. 10, attracted more than 120,000 visitors.
Despite much hoopla about a shift away from conspicuous consumption, some parts of China still have strong appetite for logo-heavy luxury goods.
“There is ostentation, and ostentation. I was reading a report recently that said that the graphic design and logo of certain brands were still extremely popular, provided they have a history and interesting graphic design,” he noted.
photo credit: simon q