The Bling Dynasty: Why the Reign of Chinese Luxury Shoppers Has Only Just Begun

Chapter 2 The Only Way Is Up

‘Some people think luxury is the opposite of poverty. It is not. It is the opposite of vulgarity'.

—Coco Chanel

Figure 2.1 Trading Up

In this chapter, we explore why the Chinese luxury market is more diverse and promising than the Japanese one and how Chinese are trading up to luxury items.

From Japanese to Chinese Dominated: Exit Single Parasites, Enter Multi-facetted Shoppers

In his 2003 book, Living It Up: America's Love Affair with Luxury (Simon & Schuster), James Twitchell made the case that the urge of fitting in is depressingly vulgar but essential. The message from many luxury brands is that products will enable consumers to ‘re-invent' themselves and that they ‘deserve' to reward themselves.

Two recurring questions I hear are: ‘How is Chinese luxury demand different to Japanese demand?' and ‘As there is limited growth with the Japanese, what is the risk that growth moderates quickly now with the Chinese?'

First, China is the only male-driven luxury goods market. Japanese consumption in the space has been essentially female driven.

But beyond that, there are many more consumer profiles in China and many differences in culture, history and sociology which make me believe that growth can continue strongly with the Chinese for some time still.

I have a friend, Francis Belin, who runs Swarovski for Asia Pacific and used to run Jaeger-LeCoultre ...