Global Retail
CONSUMER MARKETS
Luxury experiences in China
A KPMG study kpmg.com/cn 2 | Section or Brochure name
© 2011 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Luxury experiences in China | 1
Contents
Introduction Executive summary The luxury experience Digital strategies Succeeding in a crowded market Managing a robust tax environment Customs approaches for luxury companies Working with partners and vendors to protect brand value TNS Research International China About KPMG Contact us
3 5 6 16 22 28 34 40 42 44 45
Case studies Cartier Pernod Ricard Shang Xia Salvatore Ferragamo Glamour Sales Hiersun Bally Patek Philippe Sotheby’s Bowers & Wilkins
© 2011 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
2 | Luxury experiences in China Section or Brochure name
© 2011 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Luxury experiences in China | 3
Introduction
China’s role in the global luxury market is becoming more significant year by year. Many international brands are starting to see a recovery in their global sales after three very tough years, yet despite this China remains one of the brightest growth prospects. Luxury companies are pursuing very different strategies according to the scale of their operations, and the scale of their ambitions. The traditional entry route for international companies has been through partnerships with local franchises and distributors. In recent years, as the business landscape has become more open and transparent, many companies have fully
Luxury experiences in China
A KPMG study kpmg.com/cn 2 | Section or Brochure name
© 2011 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Luxury experiences in China | 1
Contents
Introduction Executive summary The luxury experience Digital strategies Succeeding in a crowded market Managing a robust tax environment Customs approaches for luxury companies Working with partners and vendors to protect brand value TNS Research International China About KPMG Contact us
3 5 6 16 22 28 34 40 42 44 45
Case studies Cartier Pernod Ricard Shang Xia Salvatore Ferragamo Glamour Sales Hiersun Bally Patek Philippe Sotheby’s Bowers & Wilkins
© 2011 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
2 | Luxury experiences in China Section or Brochure name
© 2011 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Luxury experiences in China | 3
Introduction
China’s role in the global luxury market is becoming more significant year by year. Many international brands are starting to see a recovery in their global sales after three very tough years, yet despite this China remains one of the brightest growth prospects. Luxury companies are pursuing very different strategies according to the scale of their operations, and the scale of their ambitions. The traditional entry route for international companies has been through partnerships with local franchises and distributors. In recent years, as the business landscape has become more open and transparent, many companies have fully