The China luxury market is a big target for virtually every major luxury brand. After all China is only the world’s fastest growing market for luxury goods and by 2015 is forecast to be the top buyer of luxury goods such as cosmetics, handbags, watches, shoes and clothes.
Most Western fashion brands have already recognized the importance of establishing a presence in China. According to Bain and Company luxury goods sales for the mainland of China triumphant to $10.3 billion in 2009 and up 14% from the prior year. Adding the local Chinese market made the Chinese luxury industry worth $23.7 billion dollars.
Prada certainly made it clear that they were targeting China with at least 15 stores and plans for at least 30 more by the year end of 2012. For 2011 Prada plans to open a design studio in Hong Kong in 2011.
Miuccia Prada proves she knows how to connect with Chinese luxury consumers by moving Prada clothes to the runway of Beijing Saturday evening. A big deal because this was her very first show outside of Europe. Mixing in a only some of her spring menswear line. Actresses Gong Li and Maggie Cheung added some celebrity star power to the show at the Central Academy of Fine Arts museum. Now that should score Prada tons of local media coverage and help deliver their brand message to the China luxury market.
Bain and Company reveals that Chanel, Louis Vuitton and Gucci remain the most desired brands in China. However, Bain research study stresses that after Prada unveiled its spring/summer 2011 collection in Milan in September they are now in ninth place as the most desired brand.
There remains a demand for Western luxury brands among the Chinese luxury market. Getting in through fashion might be fashionably smart.