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

Chapter 5 The Trouble with Travel

Not all those who wander are lost.

—J. R. R. Tolkien, Lord of the Rings

In this chapter, we look at how troublesome travel trends have become for the luxury brands as consumers gradually learn about the products and become ever more demanding. (See Figure 5.1.)

Figure 5.1 Knowledge Is Power

Travel's Role in the ‘Education' Process

As the saying goes, ‘Scientia potentia est',¹ or ‘knowledge is power'.

As Chinese consumers develop knowledge about brands, they have the power to change the destiny of those brands. There were more than 600 million Internet users in China by late 2013: close to three times the number from six years before and almost twice the entire US population. Most of these are mobile phone Internet users.

Blogs and forums and the Internet generally are a great way to access information. And while social media helps increase awareness of brands and many users are sending text and video messages on WeChat, the messaging communication service developed by the Tencent Company², this awareness can also get a good boost from travel.

China's luxury market started to become relevant only five or six years ago—though visionary CEOs in the sector were getting excited way earlier. The market really started developing with some of the early entrants, such as Louis Vuitton in handbags and Omega in watches. There is a high likelihood that ...