Jack Yan
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The Persuader

My personal blog, started in 2006.



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28.02.2011

Chloé chief sees China moving to more understated luxury—or is it?

Geoffroy de la Bourdonnaye of Chloé believes the mainland Chinese market is moving toward more understated luxury.
   I believe there’ll always be a mixture. The understated buyer is emerging probably because of saturation by more extrovert brands—and often, buyers want to get something different, rather than conform.
   And the top-end luxury brands have probably been devalued in any case.
   With the affluent Chinese already buying, say, cars with a grille, it wasn’t a surprise to find some brands ape that æsthetic. Who hasn’t been copied? There are downmarket cars from Chinese manufacturers with Mercedes-style grilles from a variety of manufacturers, for example.
   Don’t laugh too loudly in the west: it wasn’t that long ago that the 1975 US-market Ford Granada looked like a Mercedes pastiche. Even Ford’s own advertising sold it as a Mercedes rival. Hindsight tells us it was not.
   I say it’s sometimes differentiation, or the consumer desire for it, that drives trends—so what de la Bourdonnaye observes is one such trend in motion in China.
   The consumer knows that just because something has a luxury æsthetic doesn’t make it well built—which is why we’re seeing improvements in quality in Chinese products. It also explains the relatively restrained looks of Chery’s Riich car range: it’s meant to be premium, but it hasn’t gone too far overboard. (The G5 may be derivative, but it’s also not outlandish.)
   While the theory of market homogeneity has had plenty of critiques over the years, there is some truth in saying that the Chinese market is reflecting others as the practice of branding matures. It’s not as though the Chinese consumer is behind—even while the Bamboo Curtain was a few layers thicker, people within the mainland’s borders were able to discern one brand from another—but the world market is globalizing even further with China’s input.
   Chinese tastes will drive more of the global consumer market. We’re already seeing it with the US—the Buick LaCrosse is a joint US–Chinese design–and it’s bound to influence other sectors.
   A number of forces are at work, and Chloé seems to be a beneficiary. But it needs to be aware that it’s not just this shift to understatement—and, like all brands, it will have to continue moving with the times.

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Filed under: branding, business, cars, China, design, France, marketing, USA—Jack Yan @ 09.17

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