Chanel and WeChat Top China Luxury Sector for Brand Relevance, Study Suggests


Brands interested to grow in the China sector should strategize according to the country’s cultural trends and also cater its relevance to significant demographic groups, suggests a new study. According to the 2017 Brand Relevance Report from RTG Consulting Group, brands looking to succeed in China should focus on being up to speed with modern China's cultures and subcultures. The report, based on a survey of 5,000 consumers spanning Shanghai, Beijing, Guangzhou and Chengdu, covered nine industries.  The report also included qualitative interviews with 45 China industry experts and select consumers.

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Marc-Oliver Arnold, Chief Strategy Officer at RTG Consulting Group adds that brands are capitalising on emerging trends as they move towards expanding and targeting burgeoning niche trend markets. Arnold lists WeChat, Huawei and Adidas as prime examples of brands that have effectively utilized this strategy. Adidas, in particular, was one of the brands that was a favourite among the millennials. According to the study, Adidas performed remarkably well among the other brands, especially in areas such as consistency, passion and leadership. The study noted that such success was due to the setting up of large-scale distribution in lower-tier cities without neglecting the pursuit of inventive marketing strategies that would appeal to different subcultures.

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WeChat topped the sector for mobile apps, where Amazon was the only international brand in the top 20. Huawei was another local brand that dominated electronics and tech, ahead of Apple in sixth place. Despite the local dominance in various areas, luxury remained the only sector where local brands failed to experience significant growth. Aside from none of the top 20 relevant brands being Chinese, Chanel topped the list for Generations X and Y in China. Dior was the favourite of Generation Z, which ranked Chanel second.

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