Luxury brands adapt to a new China

By Jacob Schindler

China’s luxury goods market is slowing as a result of anti-corruption measures and shifting consumer preferences. But what do these changing dynamics mean for brand strategies and enforcement trends?

For nearly a decade, growth in Chinese luxury retail was so reliable you could set your Rolex by it. An explosion in purchasing power among China’s nouveau riche, coupled with a taste for European prestige brands, created rich pickings for luxury labels. While China accounted for just 3% of global luxury spending in 2004, this had soared to 30% by 2014. Brands have been swift to pour resources into the region, from stores and advertising to legal services – but unfortunately the thriving trade in counterfeits has increased in step with the market for genuine goods.

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Issue 71