Fashion Business Context Fashion Business Context_Claudia Ferraretto | Page 25

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hina is expected to become the world’s
largest economy given its large population and the purchasing power of its people. The Chinese explosive growth has
already placed it among the top three
largest world markets for European fashion and luxury products, so that they are expected
to be developed specifically for consumers of this
country: some brands have already started to male
clothes in generally smaller sizes to fit predominantly Chinese women’s frames (Angelique D. 2014).
Even if the recent Chinese economy situation concerned political and business leaders about the future of Chinese market, as Zipser et al. (2016) assert
“consumer confidence has remained surprisingly resilient over the past few years, as salaries have continued to rise and unemployment has stayed low”.
Latest survey of Chinese customers reveals significant changes lurks beneath the surface. The Modernization of the Chinese Consumer by Zisper et
al. (2016) found that consumers are becoming more
selective about where they spend their money: more
of their income is budgeted for lifestyle services
and experiences, trading up from mass products to
premium products, in which market internationally
well-known brands still hold a leadership position.
Another emerging market is getting a foothold
in the Chinese economy: Millennials, or Generation Y, grew up with globalization, in electronics-filled and social media, and they are now redefining luxury choosing originality over brand
name, to search for exclusivity (Abnett, 2016).
Now, with the middle classes expanding fast and the
number of millionaires soaring, more that 70 million Chinese consumer travelled overseas, making
shopping integral to the Chinese consumer’s experience: 80% have made overseas purchases, and
nearly 30% decide their travel destination based
on shopping opportunities (Zisper et al. 2016).

“Authenticity is another reason why Chinese
people prefer European or American stores
over their own” Economist (2014) proceed.
Bragging is so much important for them that
luxury-goods companies don’t have to battle
against counterfeit goods so hard as they used to.
As some Chinese people affirm, the luxury
brands handbags are like crinoline used to be
during the 18° century:showing the social status.
For those reasons it’s not surprise that fashion
brands with a strong fashion heritage, stronger
emphasis on original and exclusive designs did
well in 2015, despite the China’s luxury spending
decline (Bain & Company, 2016), probably due
to the modern luxury lifestyle that drives Chinese People to spend a lot more outside China.

ese Consumers?
“The main reason why they buy abroad is price.”
Economist (2014) report. Import tariffs, consumption taxes and higher pricing strategies can increase
prices in China to 50% more than a shopper would
pay elsewhere: according to LVMH (n.d, cited in
Economist, 2014) a Louis Vuitton handbag costs 30%
more in Beijing than in Paris.This seems to be one of
the causes for why more than half of luxury consumers check product details and prices online, through
fashion magazines, web sites and social media.

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