There is an easy, though difficult to master, formula to becoming a successful luxury brand in China: expensive products + international recognition. Before you click away from this article in disgust, let me elaborate on this oversimplification. Notice what I did not mention; ie: brand personality, brand history, the country the brand originated from, or pretty much anything else to do with the brand as it relates to emotion. Basically, the idea of luxury brand has been gutted and reduced to its most basic level: the ability to communicate status and wealth.
This seems superficial, but in truth it’s understandable when you consider Chinese history doesn’t include a lot of brand name purses, or plaid luggage and clothing. Fact is, Chinese are new to brands, and thus, the easiest ways to relate to them are through the most visceral qualities. The way Chinese relate to luxury brands in many ways reminds me of the time I was in LA; seeing a lot of tattoos of Chinese characters, many of which were misspelled, or phrases that had no meaning in Chinese.
Yes, I am comparing tattoos to Fendi, but bear with me as I attempt to make my point. When these people were getting their tattoos, the first thought that went through their heads was “wow that looks cool”. However, if you’re Chinese and you’ve been staring at these characters every day of your natural life, the cool-factor tends to wane, and the meaning of the phrase take precedence. It’s the reversed situation in China, brands that have that “cool” look; determined by money/status elements; are perceived better then those that ride the “Western history, character, etc” strategy.
The key strategy for many successful brands is not to simply import their brand culture to China, but to recreate it in China. Why doesn’t importing work? It’s the same reason why Toyota and Sony don’t show you images of Japanese businessmen, sushi, or tell you about ancient Japanese warrior codes, etc. Though it’s interesting, It’s just not that relevant for you as a non-Japanese.
This thought experiment extends further, think of the average Chinese when they see a typical luxury ad based on the brands history. It’s probably similar to you seeing an ad for Chinese tea: 1. people dressed in Chinese silk robes, 2. old man with fu-man-chu mustache/beard, 3. bamboo in background, general green overtones, etc. These ads to a westerner will probably seem repetitive after a time, regardless of the different tea brands showcased. With that in mind, lets try to think how your average Chinese citizen will react to imported western advertising featuring toothpick supermodels. The quick conclusion: It all looks the same, it’s just a never ending stream. How is this problem solved? Simple (but not easy). Give the brand a Chinese soul; ie: starting from scratch, make the brand relevant to China. No one wants a counterfeit heart.
Brands have become an extension of who we are; they’re special. My theory on why counterfeiting runs rampant in China, apart from the obvious low price element, is that without a real identification of the brand, who the hell cares if its real or fake? However, once someone identifies with the personality of the brand, there tends to be a shift in behavior toward the more genuine; ie: no one wants to be represented by counterfeit. Until this happens, expensive luxury brands will not symbolize the person, they will symbolize… well… that they’re expensive. Now, of course, there are many other factors involved, but the gist of it is that tools are interchangeable, but real emotions are not.
As long as brands fail to connect on the emotional level, and only spout the tired “I’m elite, you’re elite” spam then they’ll never hit on what it is to be Chinese; what it is to bust your ass competing against one billion nationals; what it’s like to see opulent decadence, then look at your USD 500/month salary; what it’s like to feel the anxiety of knowing you could, in the first time in Chinese history have it all, yet you don’t know how the hell to do it, etc.
By understanding the above, brands can lift themselves from the pack and begin having true relevance to the Chinese. I’m not saying that the money/status strategy doesn’t work – it does to a degree. But the China market is saturated; to gain advantageous position in the Chinese market, brands must attain an advantageous position in the Chinese heart. ( By Rand )