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A guide to reaching and profiting from China's expanding luxury consumer class

China's growing consumer base and expanding economy means more disposable income for more Chinese citizens. The Chinese market for luxury goods is expected to expand from $2 billion this year to nearly $12 billion by 2015. Today's biggest global luxury goods retailers expect China to make up a large and ever growing portion of their customers, and those businesses are responding with new stores and investments in China. Luxury China gives readers–particularly professionals in advertising, marketing, and the luxury brands industry–a deep look into the future of the Chinese luxury goods market and shows them how to tap into China's tremendous market potential.


Michel Chevalier, a graduate of HEC in France, holds an MBA and a Doctorate from Harvard Business School. He started his career at the Boston Consulting Group, then worked for S.C. Johnson and moved into the luxury field. He was successively general manager of Paco Rabanne Perfumes, chairman of Paco Rabanne Fashion, executive vice president of Bluebell Asia Ltd. in Hong Kong and in Tokyo, as well as chairman of the Revillon fashion group in Paris. He is now a consultant for EIM in Paris and office manager of EIM Shanghai. Michel teaches at University Paris Dauphine and Institut Supérieur du Luxe in Paris specializing in luxury for their MBA course. He has also published  numerous articles in journals on retailing and coauthored the books, Pro Logo and Luxury Brand Management, with Gérald Mazzalovo.

Pierre Xiao Lu is an Assistant Professor of Marketing at Fudan University’s School of Management in Shanghai and the Visiting Professor of Marketing at ESSEC Paris-Singapore. He also consults for many multinational luxury firms, such as Lacoste S.A., LVMH, PPR-Gucci and MasterCard. Professor Lu specializes in luxury consumer behavior in China and luxury brand management in Asia. After working for several years at ESSEC’s luxury industry research center, he received his Ph.D. from ESSEC Business School Paris. His articles on the luxury industry and Chinese luxury consumers have been published in professional and academic journals, such as AMA, AFM, Comité Colbert, Harvard Business Review China and Financial Times China. He is also the author of Elite China and translated Luxury Brand Management into Chinese.




Chapter 1: Challenges and Market Size 1

Case study: Alfred Dunhill 19

Chapter 2: The Chinese Luxury Client 29

Case study: Shanghai Tang 45

Chapter 3: Chinese Consumer Attitudes Toward Luxury 53

Case study: Rolex in China 77

Chapter 4: How to Distribute in China 85

Case study: Shiatzy Chen 99

Chapter 5: Retailing and Licensing in China 105

Case study: Louis Vuitton in China 125

Chapter 6: Communication and Advertising 137

Case study: The War of the Spirits 165

Chapter 7: Brand Protection and Counterfeit Activities 175

Case study: Liuli Gongfang: Breaking into Luxury by way of Glass 189





This is the first book to provide all necessary information for a luxury brand trying to develop its business in China. It indicates how the consumers, the stores, the markets and the communication tools are different and must be understood and used in a consistent and harmonious way. It gives examples of brands that have done well and brands that have done less well, so that the reader can understand the best practices in this territory.
- Mimi Tang, President, Asia and Pacific, Gucci Group

Is the China luxury market a long-term gold mine, a short-term mine field, or both? This timely and insightful book answers this question—and many more! No doubt a book every manager of the industry should read before investing or investing more in this fascinating country.
- Eric Douilhet, President, Bluebell (Asia) Ltd.

The Chinese El Dorado for luxury brands is not a quiet one-way street. More than anywhere else in the world the learning curve is a long and sometimes painful process. In Luxury China, Michel Chevalier and Pierre Lu share their outstanding experience of luxury brand management in China to help us assess and understand the marketing and business challenges, and better respond to them.
- Alexandre Fauvet, Director for Licenses & Distribution, Lacoste SA

Luxury China provides a complete exploration and explanation of the argument that China’s potentially substantial surplus from foreign businesses can be considerably justified by the success of the luxury sector. Through affluent cases from both Europe and China, readers will learn about the vigor, acceleration, and future of the Chinese consumer market.
- Professor Lu Xiongwen, Dean, School of Management, Fudan University

The merit of this book, Luxury China: Market Opportunities and Potential, is that it is the first one to clearly indicate and to substantiate the fact that China has become a priority for the most dynamic brands and it gives very clear indications about the way in which the market should be developed.
- Sidney Toledano, President and CEO, Christian Dior Couture