With the West currently going through a second wave of the COVID-19 pandemic, luxury brands are focusing on 2021 and how to win in what has become the world’s largest economy: China.
China has now overtaken the US as the world’s economic powerhouse, according to figures released by the International Monetary Fund this month, which predicts that the Chinese economy will grow 1.9 percent this year while the US economy will shrink by 4.3 percent, and the EuroZone by 8.3 percent. This news makes China strategies more important than ever for luxury players as they head into 2021.
At the onset of the pandemic, accelerated change in brand strategies for China quickly became a must. But what do the luxury experts say brands should do to win in China as they enter 2021? Jing Daily canvassed eight leading voices in China’s luxury market to find out.
Make the digital transformation
“In the first six months of the pandemic, luxury brands were forced to leapfrog in terms of digital innovation. A lot had to get on social platforms they were not on. A lot thought livestreaming wasn’t luxury, but now they have started doing it,” says Chloé Reuter, a founding partner at the Shanghai-based consultancy Gusto Luxe, whose clients include Harrods and Estée Lauder. “They need to keep stepping out of that comfort zone to compete. China brands are rising fast and have more local know-how.”