The Hindu Business Line : Luxury brands in China

In today’s China, the concept of luxury is a confused one, particularly because of the inappropriate Chinese translation of the word and the negative connotations of extravagance in Chinese history and culture, writes Pierre Xiao Lu in Elite China ( www.wiley.com). The Chinese translation of ‘luxury’ has two characters, she meaning ‘extravagant’ and chi meaning ‘arrogant and wasteful.’ Together, the characters combine to pejoratively indicate dissipation and the wasteful use of wealth, the author explains. Such a connotation can give rise to psychological conflicts in potential buyers, he fears. Lu, therefore, suggests that the translation be changed to jing pin, meaning high-end fine product.

Going beyond the semantics, the book has valuable advice on how to succeed in the Chinese luxury market. The best strategy, says Lu, is to create a subsidiary with 100 per cent-owned stores in every targeted city.

“To be a real luxury brand in the 21st century requires three basic conditions: craftsmanship, products that are aesthetically appealing, and an international profile,” he outlines. “Having international recognition breeds confidence among the Chinese brands and consumers alike.”

Necessary read if your luxury business has a Chinese footprint.

Consumerism is pro-marketing

Marketing in a Nutshell
Mike Meldrum and Malcolm McDonald

It is not uncommon to find marketers looking at consumerism as an anti-marketing effort. Not, it is pro-marketing, aver Mike Meldrum and Malcolm McDonald in Marketing in a Nutshell ( www.elsevier.c om). Consumerism wants the marketing approach to business implemented in a sincere rather than cynical spirit, the authors explain. “The cynical implementation, which consumerists claim has been all too widely practised, is no better than high-pressure salesmanship or misleading puffery. The sincere implementation of the marketing approach entails respect for each individual customer served.”

The authors cite the marketing of children’s toys as example of how the objectives of the company and the consumers can all be satisfied by careful business practice. “The successful toy companies of today are those which inform parents that their products are not potentially dangerous, not coated with lead paint, and not destroyed the hour after they are first pressed into active service.”

Valuable lessons.

‘Private’ myths

Private Label
Keith Lincoln and Lars Thomassen

The first ‘private’ myth is that private labels are for people who buy private label, say Keith Lincoln and Lars Thomassen in Private Label ( www.vivagroupindia.com). “There was a time whe n buying private label was a down-class and a ‘naff’ thing to do. These days are gone for ever. It’s now a ubiquitous part of our lives.” Quoting data from AC Nielsen and Homescan, the author state that private labels have an annual penetration of 100 per cent of households in all key European countries, and in all developed economies in general.

The word ‘label’ is a misconception, argue the authors. “The major private label brands are in fact some of the biggest brands in the world … not labels.”

Important messages.

D. Murali

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