Industry Analysis Case Study

The Chinese Luxury Goods Industry in 2005

OR

Abstract:
The case highlights the tremendous growth potential for the luxury goods market in China. The case also focuses on the luxury industry in 2005 and the top 3 players. The booming economy in China coupled with increasing disposable incomes of the Chinese is making China a market that cannot be missed out by the luxury goods players. But the luxury players have to face the problem of counterfeiting which has reached to the extent of contributing to China’s GDP and supporting local economies. The luxury goods firms are in a dilemma, whether to enter the Chinese market and face the problem of counterfeiting or play safe by staying away from China and let go the opportunity of a strong potential market which is all set to be the No.1 in the near future.

Pedagogical Objectives:

• To analyse whether the luxury industry should enter China
• To analyse whether the presence of counterfeiting is a threat to the luxury goods industry.

Keywords : Luxury Goods; China; Counterfeiting; Fake; Pirated; Country of Origin; Luxury Retailing; Market Potential; Tourism and Luxury Industry; Industry Analysis Case Study; Local Partnerships; Brand Image; LVMH; Gucci; Richmont; Yuan