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Industry Analysis Case Study
Case Title:
Luxury Brands in China: Profiting from Scale
Publication Year : 2008
Authors: Sushma, Muthu Kumar
Industry: Luxury
Region: China
Case Code: INA0069
Teaching Note: Available
Structured Assignment: Available
OR
Abstract:
China's 1978 economic reforms helped boost its economic growth and in turn, the income levels there. China's demography too changed - with thousands of millionaires and a growing middle class coming up. All this had an impact on the country's luxury industry, whose growth is expected to jump from 1% in 2000 to 29% by 2015, making it the largest market for luxury brands. However, China is a complex cultural market.
Pedagogical Objectives:
The case study helps students:
- Analyse the impact of China's economic reforms
- Discuss the growing demand for luxury brands
- Assess Chinese consumer behaviour
- Discuss various strategies
- Analyse the challenges for players.
Keywords : Luxury Brands; Counterfeiting; Luxury Retailing; Tourism and Luxury Industry; Brand Image; L'Oreal; LVMH; Competition; Critical Success factors; Market Entry Strategies; Consumer Behaviour; Industry Analysis Case Study; Industry Dynamics; Brand Building; Challenges for Luxury Goods Companies
