china market
Luxury brand’s expansion in China
- Opportunities and possible strategies
Bachelor thesis in International Business
Spring 2011
Author:
Dang, Xi-Er 890324-5085
Wan, Jessica 880226-4369
Tutor:
Harald Dolles
Acknowledgement
This bachelor thesis has been written at the department International Business at the School of
Business, Economics and Law at the University of Gothenburg. In the time frame of ten weeks, we have gained great knowledge about the luxury industry in general and luxury brands operating in China, in particular. Additionally, we have acquired a deeper understanding on how to conduct an academic research. We would like to thank our tutor
Harald Dolles who has been of great help with assistance and guidance along the construction of our thesis.
School of Business, Economics and Law, June 2011
____________________________
______________________________
Jessica Wan
Xi-Er Dang
2
Abstract
Since the economic reform of China in 1978, the country has been under a process of industrialization and modernization. The average household income has risen, where the proportion of middle-class households, earning more than RMB 3 500 per month, has increased. In addition, there is a great share of the „China elite‟, which consists of the upper middle-class and the very wealthy. Due to China‟s enormous market of 1.3 billion people and the growth of wealthier households, the country has become the largest market for luxury.
Many luxury brands are established in the market today, some with a greater presence, others more limited. The aim with our thesis is to investigate potential opportunities, in the aspects of customers and cities, for a luxury brand to consider when it seeks to expand in this vast market of China. We will also look into possible marketing strategies that luxury brands can apply. We conducted our study by looking at available secondary data, and have ensured the credibility of our study by
- Opportunities and possible strategies
Bachelor thesis in International Business
Spring 2011
Author:
Dang, Xi-Er 890324-5085
Wan, Jessica 880226-4369
Tutor:
Harald Dolles
Acknowledgement
This bachelor thesis has been written at the department International Business at the School of
Business, Economics and Law at the University of Gothenburg. In the time frame of ten weeks, we have gained great knowledge about the luxury industry in general and luxury brands operating in China, in particular. Additionally, we have acquired a deeper understanding on how to conduct an academic research. We would like to thank our tutor
Harald Dolles who has been of great help with assistance and guidance along the construction of our thesis.
School of Business, Economics and Law, June 2011
____________________________
______________________________
Jessica Wan
Xi-Er Dang
2
Abstract
Since the economic reform of China in 1978, the country has been under a process of industrialization and modernization. The average household income has risen, where the proportion of middle-class households, earning more than RMB 3 500 per month, has increased. In addition, there is a great share of the „China elite‟, which consists of the upper middle-class and the very wealthy. Due to China‟s enormous market of 1.3 billion people and the growth of wealthier households, the country has become the largest market for luxury.
Many luxury brands are established in the market today, some with a greater presence, others more limited. The aim with our thesis is to investigate potential opportunities, in the aspects of customers and cities, for a luxury brand to consider when it seeks to expand in this vast market of China. We will also look into possible marketing strategies that luxury brands can apply. We conducted our study by looking at available secondary data, and have ensured the credibility of our study by