Selling luxury in China despite hedonism ad ban

5:52 PM China, despite, hedonism, luxury, Selling No Comments

By Adrienne Mong

Beijing - for a moment it felt like 2007.

"It is the new China, and we are the new face of Burberry."

The high-end British fashion label hosted a splashy night in Beijing Wednesday evening in the context of its efforts to celebrate a younger face for the 155 - year to promote old brand and the growing presence in China.

Adrienne Mong

Chinese models such as Shupei strut their stuff for Burberry.

"I'm so excited, again here [at] this exciting time of China's development," said Angela Ahrendts, Burberry's CEO, a positive note sounds reminiscent of the heady days of drive in the run-up to the Olympic Games in Beijing.

Ahrendts was on the way in which new Beijing television (BTV) sound stage where more than 900 guests, including celebrities, models, diplomats, businessmen and VIP-clients - were by flowing champagne as they awaited beginning of a digital fashion show and a live performance of Keane is operated.

"This is the largest and most innovative event we've ever made," said Christopher Bailey, the labels Chief Creative Officer.  The opportunity was live streamed on the Internet through the company's website and broadcast in independent boutiques all over the world.

The decision to hold the event in Beijing reflects the importance of China for global supplier of luxury goods.

Burberry, where has currently 57 stores in the country - plans "close to 100 shops over the next five years, after Ahrendts open".

"It is no surprise, it is one of the most important growth markets in the world for us," she said.  "It is very much contributed to our growth."

Adrienne Mong

Burberry plans, close to 100 to open business in China in the next five years.

Money money money
Luxury brands have long smacking lips on the potential of the Chinese consumer market potential - regularly published statistics maintenance thumbnail armed with fat wallets was fed by hundreds of millions of hungry shopper.

In the year 2010 China counted 960,000 people with a personal wealth of us $1.5 million, to 9.7 percent from the year before, according to the annual Hurun wealth report 2011, published by a luxury publishing and events group in Shanghai.

"Luxury for the most luxury brands, China - or the [Mainland] Chinese consumers - number one,", said Rupert Hoogewerd, Chairman and Chief researcher of the report. "Whether it number is one in market share or number one in market growth."

But it is not only the super rich, who buy up high end were.

A survey by McKinsey & company last month showed that "the 13 million households consisting of from China's upper middle class (income between 100 000 and 200 000 Renminbi or $15,000 to $30,000) provide the biggest growth Opportunity…we 76 million households in this income expected by 2015 [.]"

Luxury sales, saw in the meantime 16 percent growth in China 2009 despite the global recession.  By 2015 it will achieve expected to $27 billion, gelautet last year to 12 billion dollars according to McKinsey report.

What makes it all the more interesting, that displays last month reports a ban on the word "Luxury" in advertising.

A ban on "Luxury"?
The Beijing Administration for industry and commerce on 15 March announced new guidelines limiting the content in the outdoor advertising.  Enterprises were encouraged that they only on Friday to vet of their posters and other outdoor - map to ensure that they comply with the new provisions.

The very loosely worded and vague newsletter focuses on the "irregular content" and "irregular characters, words and phrases."  Special features in the statement received only once: "…including unhealthy political and cultural climate in outdoor advertising, advertising hedonism, feudalism, Pro-foreign sentiment, royalty-free, rudeness, Vulgarity…."

Two days later, the State China daily newspaper reported that "officials are destination announcements, the ' hedonism to promote' or the ' worship of foreign products." "

The article quotes then examples of words no longer to be used in map: "Supreme", "Royal" "luxury" or "High-Class."

Policies like this appear attempts of luxury brand name company such as Burberry, expand to hinder their presence in the Chinese market.

But a long-time resident corporate communications strategist in Beijing argued that the Central Government concerns the new ad restrictions on class - match not luxury.

The "nation's leaders are not ready, allow China to become - or, more importantly, appear divided by class to a society as it was before the revolution-" writes David Wolf.  "The people allow, to be rich is acceptable, as long as the party can hold a claim credible, that one new China basically egalitarian society."

Adrienne Mong

Members of the rock group Keane pose for the cameras before their first live show in Beijing.

China + luxury face of a braided each other future
In the meantime Burberry can follow then, Merry its expansion strategy in China executives.

"China not so dissimilar, Burberry," Ahrendts commented.  Both, saying that "old" are but was powered by a young energy.  "The future of China and the future of the Burberry honestly are inextricably linked."

But let us not in a discussion on time to get.

Chinese officials, have new restrictions on this topic appears, to enact.

In particular, time travel.

The State administration of radio, film and television (SARFT) recently published a statement on its website ban on the use of time-travel in movies and tv shows, say, that the narrative device "story disrespects."

But that's a different blog.

With additional research by Bo gu and Emily NI.