How US luxury brands conquered China
Brands including Coach, Tiffany & Co., Estée Lauder and Michael Kors have become popular in China by working on Chinese online platforms and working with Chinese influencers
While there is no one-size-fits-all China market strategy, there appears to be five common approaches for US brands to reach Chinese consumers. Several US brands, including Tiffany & Co, Estée Lauder and Michael Kors, have made a name for themselves in China’s growing luxury market. The Luxury Conversation Survey on US brands revealed clear adoration for various brands and travel destinations. How have they each achieved this?
Brand culture and heritage
Some luxury brands have become popular in China because Chinese people perceive them as being representative of a certain social status or lifestyle. One prime example is the classic Tiffany & Co, which has a similar reputation in China as it does in the US, seen as a legacy brand exuding class and grace. In 2015 China luxury research company Hurun found that Tiffany & Co. was Chinese HNW consumers’ favourite American luxury brand and their third favourite jewellery brand.
While Tiffany is lucky enough to have a strong reputation to build off of, it smartly realised that, to maintain their status in China, they needed to embrace modern marketing methods. So far, Tiffany has focused on mobile marketing with both a highly developed WeChat account and their own platforms, including its popular “Engagement Ring Finder” app.
Relying on brand culture is not exclusive to classic legacy brands. When streetwear brands became huge in China in 2017 thanks to the popular reality contest The Rap of China, demand for NYC cult-classic SUPREME skyrocketed, especially after their collaboration with LV. Now, SUPREME is seen as the epitome of hip-hop fashion and owning SUPREME has become a must for trendy Chinese millennials.
Affordable lux
Affordable luxury brands have seen massive success among upper middle-class Chinese consumers who desire luxury products but don’t yet have the budget for them.
Michael Kors is a leader in the accessible lux category, and is a very popular brand in China. Kors has achieved success by going all-in on China marketing and e-commerce. The savvy Kors China team goes where their target market is, constantly experimenting with new platforms and technologies.