Some luxury brands keep on growing, despite a recession. Hermes expects to grow, also in the upcoming five years and Ben Cavender, principal at the China Market Research Group explains on China Daily why.
The China Daily:
Ben Cavender, associate principal from the Shanghai-based China Market Research Group, revealed the reason: “There are basically two kinds of luxury consumers in China, the ultimately wealthy and the aspiring middle class,” he said. “What we are seeing right now is that affluent consumers are moving upmarket in their purchasing decisions and are favoring more exclusive ultra-luxury brands such as Hermes over the mass luxury brands such as Louis Vuitton or Gucci that have done well in China in the past.
“This group of affluent buyers has already had the experience of purchasing the more mainstream luxury brands and no longer feels the need to buy luxury accessories that are immediately obvious to everyone on the street. Instead, they are looking for exclusivity and the best of the best, even if only a few people will be able to tell what they have purchased. This is opening the door for ultra-luxury brands such as Hermes or Bottega Veneta, or expensive one-off pieces.”
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