THE CHINESE MARKET
DEMOGRAPHICS
The target market focuses on two age groups 20-29 and 30-39. The majority of potential customers are employees at companies. With managers and independent businesswomen coming in at the second and third places respectively. This younger age range is understandable due to 80% of wealthy Chinese being between 18 and 45 years old. Over 50% of the market is single; with couples in a relationship and married hovering around 15% on average. The Chinese consumer uses high-heeled shoes primarily for formal events and what the Chinese call an eating party. The eating party is a social gathering that usually involves food and often Chinese alcohol known as baijou. Special occasions and work are also strong venues for high heels and luxury shoes.
Kathy Bloomgarden, "Luxury Brands Look to China," Harvard Business Review, September 11, 2009, accessed December 05, 2014, https://hbr.org/2009/09/the-chinese-consumer-the-next-1/.
LOCAL PREFERENCES
There is a local preference for heels between five and eight cm. Flats and high heels between nine and 12 cm also ranking fairly high. There was a major preference towards black with over 57.4% of respondents desiring that color. Red followed up with 14.8% of respondents choosing red. Our interviews revealed that after sales service for luxury goods in China is particularly inadequate. In addition, our surveys indicated that Chinese consumers demand free repairs and customized items as highly valued services from their brand. In terms of materials, the Chinese market clearly has a preference for leather and suede. Following is a demand for exotic animal skins. By tailoring to these preferences, Manolo Blahnik will have a better chance of delivering higher value to its consumers.
Designer Apparel (Ready to Wear) In China," Euromonitor Passport, February 2014, #5, accessed December 5, 2014, Euromonitor.
Kathy Bloomgarden, "Luxury Brands Look to China," Harvard Business Review, September 11, 2009, accessed December 05, 2014, https://hbr.org/2009/09/the-chinese-consumer-the-next-1/.
MARKETING INFLUENCE
Fashion blogs command a critical role in the luxury market from which to create brand awareness. Fashion blogs and social media are platforms to get inspired and to learn about fashion and brands. A strong social media presence is critical to building brand awareness in China. TV movies and celebrity endorsements are also viable platforms. Interestingly the United States, France, and South Korea in that order are the countries whose style most influences the Chinese market. Brands like Manolo Blahnik that are big in all three of those markets may have an easy time entering China.
SALES PLATFORM
Most Chinese consumers prefer to buy luxury shoes in department stores or own-brand stores. As noted in Euromonitor's update of the Chinese luxury market online luxury good sales represent less than 1%.
E-commerce for luxury goods is a growing trend but does not represent a significant share of sales, yet. Our survey indicates that the Chinese luxury shoe consumer owns fewer than six brands and in many cases less than three. In our industry Prada is the most well-known luxury shoe brand quickly followed by Christian Louboutin. Chinese buyers are extremely brand loyal, according to a Harvard case study 89.3% of respondent would stick to their preferred luxury brand despite an economic downturn.
Kathy Bloomgarden, "Luxury Brands Look to China," Harvard Business Review, September 11, 2009, accessed December 05, 2014, https://hbr.org/2009/09/the-chinese-consumer-the-next-1/.
