Reference News Network, January 2 report: The Hong Kong South China Morning Post website published an article by James David Spelman, head of the U.S. strategic communications company, titled "How Chinese Domestic Luxury Brands Challenge Western Brands." The article is compiled as follows:
Chinese consumers are increasingly favoring domestic brands over Western imported brands, reshaping the global luxury market. Their preference for domestic brands is undermining the traditional status of European luxury brands, which have long been seen as the pinnacle of taste, craftsmanship, and prestige. Shoppers around the world are becoming more discerning, especially in China.
At the same time, as Chinese brands blend modern styles with a thousand-year-old civilization, the negative perception of "Made in China" is fading. There is a booming demand for "experience goods," particularly in tourism, dining, and other leisure activities that enhance personal cultivation and well-being.
Chinese brands are emerging on the global stage. According to Brand Finance, a brand valuation consulting company, Pechoin has entered the top 15 most valuable cosmetic brands in the world. Euromonitor Consulting noted that Southeast Asia is the largest and second-fastest growing export destination for Chinese goods.
Another sign of transformation is the thriving second-hand luxury market in China. Platforms such as Zhi Er, Hongbulin, and Feiyu have driven the development of the second-hand luxury ecosystem, with growth even outpacing the new product market.
Domestic lifestyle brands such as Moge Ping, Laopu Gold, and Hua Xizi are also rising strongly, attracting young consumers with strong national pride. More and more of them are pursuing products rooted in Chinese culture and with more affordable prices. The packaging and storytelling of these products incorporate elements of Chinese mythology, art, and poetry. The success of these brands is no accident.
In cities where Chinese consumers have the strongest luxury purchasing power, researchers found that "cultural authenticity of product branding has a significant impact on purchase intention."
The jewelry brand Qilin, named after the mythical creature the qilin, and another jewelry brand, Laopu Gold, both use traditional elements. Cosmetics company Hua Xizi incorporates traditional elements such as Song brocade, a traditional Song Dynasty textile technique, into its packaging and marketing process.
The rise of Chinese brands reflects their increasingly mature marketing strategies. In the process of Chinese consumers purchasing luxury goods, word-of-mouth and brand reputation are equally important. Chinese domestic brands are benefiting from positive attention on social media platforms, and the rise of platforms such as Xiaohongshu and Douyin, along with their focus on lifestyle content, has also driven sales growth.
At the same time, artificial intelligence is enhancing platforms' ability to identify potential buyers and making marketing campaigns more precisely tailored to customers' interests and emotions.
E-commerce remains crucial, as consumers seek authenticity and convenience from brands through WeChat interactions, 3D visualization, and other immersive experiences, rather than just facilitating simple transactions.
As their market share increases, Chinese domestic brands are redefining the meaning and value of luxury for the new generation of Chinese consumers. They understand Chinese culture and are proficient in digital technology. In China, luxury is no longer about fitting into someone else's narrative but telling one's own story. (Translated by Lu Di)
Original source: toutiao.com/article/7590655639421780523/
Statement: This article represents the views of the author himself.