Chanel the most sought-after luxury fashion brand in China

Jenni Baker, London

Chanel has overtaken Louis Vuitton as the most sought-after global luxury fashion brand in China, according to Digital Luxury Group’s (DLG) World Luxury Index China – 2nd Edition.
The report suggests that Chanel overtook Louis Vuitton due to rising interest in various product segments, most notably beauty. Interest in Louis Vuitton stemmed mainly from the fashion segment, accounting for almost three quarters of total interest in the brand.

“Louis Vuitton has reported a disappointing first quarter, while brands from different segments ranging from Chanel to Coach or Burberry are continuing to grow,” says DLG founder and chief executive David Sadigh. “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.”
This year’s report was dominated by the automotive category (53.5%), followed by beauty (22.7%) and fashion (14.9%).
Audi topped the ranking as the number one most-sought after luxury brand for Chinese consumers, followed by BMW, Chanel, Estée Lauder and Louis Vuitton. The remainder of the top 10 consisted of Lexus, Mercedes Benz, Dior, Porsche and Lamborghini.
New entrants onto this year’s ranking include Elizabeth Arden (#43) and Rado (#50). Meanwhile, Salvatore Ferragamo and Moncler fell out of the top 50.
“Many brands expected that an increase in Chinese sophistication would reduce the cultural gap with their overseas consumers,” says DLG general manager China Pablo Mauron. “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.”
Image Credit: Im Perfect Lazybones / Shutterstock.com

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