Chanel Tops List of China’s 50 Most Popular Luxury Brands

Backstage at the Cruise 2013/14 fashion show with Karl Lagerfeld and models

Backstage at the Cruise 2013/14 fashion show with Karl Lagerfeld and models

Shanghai—With China the key target for expansion among luxury brands (nearly all brands for that matter), the top ranked brands vying for attention with the Chinese market is closely watched and analyzed.

That’s why when the Digital Luxury Group (DLG) today announced its results for the top 50 luxury brands in China, it was a surprise that Louis Vuitton place at No. 1 was supplanted by Chanel.

Analysts at DLG believe that Chanel’s place was boosted by growing interest in its various product categories, particularly beauty. Whereas most of Louis Vuitton’s interest, about 75% of it, was due to its fashion merchandise.

According to David Sadigh, founder/CEO of Digital Luxury Group, “Louis Vuitton has reported a disappointing first quarter, while brands from different segments ranging from Chanel to Coach or Burberry are continuing to grow. Though rapidly evolving, the Chinese market is still developing. In order to stay ahead of the game, brands must have the ability to adapt quickly thus reducing the risk of brand saturation. In the case of Louis Vuitton, LVMH has already shifted gears, putting the brakes on its global expansion, whilst raising prices and developing more leather upmarket products.”

As the first company to create a luxury industry market intelligence in partnership with Luxury Society, DLG unveiled today its 2nd edition of the World Luxury Index China, a ranking and analysts of the most sought-after luxury brands in China.

Handbags, Leathergoods Dominate Fashion Market in China

This year’s report reveals that Chinese consumer interest in the luxury market is dominated by heavyweights: Cars (53.50%), Beauty (22.70%) and Fashion (14.90%). New brands to enter the Top 50 are: Elizabeth Arden (#43) and Rado (#50). Meanwhile Salvatore Ferragamo and Moncler dropped off this year’s rankings.

“Many brands expected that an increase in Chinese sophistication would reduce the cultural gap with their overseas consumers. In some cases, it actually contributed to the development of unique local preferences, independent from Western tastes, thus challenging luxury brands in terms of product offering but also opening up the way for new opportunities to grow in the Chinese market,” said  Pablo Mauron, general manager China at DLG.

Among the key trends identified, shaping the China luxury market:

Fashion–The Top 3 Most Sought-After Fashion Brands in China are: Chanel (#1), Louis Vuitton (#2) and Gucci (#3). Giorgio Armani, is the fastest growing fashion brand, up +17 spots since last year. Handbags and small leathergoods wallets dominate the fashion market in China accounting for almost 90% of total interest. Celine’s “Luggage,” consolidates its iconic status in the mainland as the No.1 most popular handbag model, followed by Hermès’ Birkin and Chanel’s 2.55.

Jewelry–The Top 3 Jewelry leaders consolidate their stronghold on the market accounting for almost 90% of total interest, led by Chinese brand Chow Tai Fook (#1), Cartier (#2) and Swarovski (#3). Rings are the most sought-after jewelry classification, representing over half of all searches, in majority for Cartier and Tiffany & Co.

Watches–Omega, Rolex and Longines lead the luxury watch segment. Classic, elegant models dominate Chinese consumer interest lead by Omega’s De Ville, which becomes the number one most sought-after model (up 3 spots from the previous year).

Top_50_Most_Sought_After_Luxury_Brands_in_China_1Beauty–Estée Lauder, Lancôme and Dior retain their spot as the three most desired beauty brands in the Chinese market – Lancôme overtaking Dior as #2. Most popular fragrances are led by French classics: Dior J’adore, Chanel N°5 and Chanel Chance.

About the World Luxury Index China

The report is part of the World Luxury Index, an international ranking and analysis of the most sought-after brands within the luxury industry. This study covers 400+ luxury brands within six key segments (fashion, cars, beauty, watches, jewelry and hospitality) and provides insights on the interest coming from luxury consumers in China. The unbiased information is derived from 680 million consumer online searches originating from leading search engines Baidu and Google.

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com

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