CHINA LUXURY MARKET: THE CASE OF KERING GROUP

Abstract

This paper discusses the rise of the luxury market in China and it analyses the performances and strategies adopted by Kering, the famous French fashion group, and by its brands. Today China is very important for many brands and it is expected to become the biggest luxury market by 2025, when it will account for 45% of global purchases. The paper starts with the discussion of what “luxury” means to today’s Chinese consumers, their purchasing behaviour, the age groups and the channel sales. Then, it presents an analysis of the digitalisation of this market, the main social media, the e-commerce platforms and the new trends/strategies that luxury brands adopt today (like livestreaming and KOLs). The paper continues by discussing Kering, which is one of the leading groups in today’s fashion industry. It analyses the structure of the group, its performances in China during the years of the COVID-19 pandemic, the efforts to create a culture of sustainable consumption among the Chinese consumers and its issues in this market (the lawsuit against Alibaba, for example). The following chapters present an analysis of some of the group’s main brands (Gucci, Saint Laurent, Bottega Veneta, Balenciaga). All these brands needed to adapt to a market which is very different from the western ones and that progresses at a very fast pace. This adaptation includes the opening of business accounts on Chinese e-commerce platforms and the launch of campaigns and collections that are made exclusively for China.