Can China develop its own luxury brands? A case study of clothing brands

Abstract

Based on the prediction of Altagamma Worldwide Marker Monitor, Chinese luxury con-sumption will reach EUR18.5 billion in 2015, representing 20% of the global market and becoming the largest luxury market in the world. Since 2006, consumption of luxury goods, which is EUR9.2 billion in 2010, has been growing at a CAGR of 27%. The opportunity for investment attracts all the luxury gi-ants tapping into Chinese luxury markets, causing a fierce competition in Chinese luxury industry. This article aims to explain the underlying reasons for Chinese luxury boom in the aspects of economy, soci-ety and psychology. By studying the case study of traditional cheongsam company Shanghai Tang, the bright future of domestic luxury brands can be seen. Through SWOT analysis of local apparel compa-nies, accessible advice to build Chinese luxury brands is provided, especially in the apparel industry.