Resurgence of Hard Luxury in China: Brand Image as the Driving Force

The Hard Luxury market in China has experienced an exciting resurgence, with jewelry and high- watch sales soaring by approximately 35 and 30, respectively. Swiss watch exports enjoyed a robust growth of 48.8 over 2019 levels in 2021. This dynamic growth underscores the evolving dynamics within Hard Luxury, which is reshaping traditional brand-consumer relationships.

Firstly, consumers are now looking for labels that reflect their social status or personality projection. For Hard Luxury brands investing significantly in building their brand equity, this presents a favorable opportunity. The Deloitte study reveals that brand image ranks as the most critical factor when purchasing luxury watches for Chinese customers vs. pricevalue ratio preference among US customers. Intriguingly, this tr is becoming prevalent even within the growing jewelry category, which McKinsey Co anticipates will account for 25-30 of the global market by 2025.

The Tiffany Knot campgn featuring Olympic skier Eileen Gu attracted significant attention on Chinese social media. This highlights how easily recognizable pieces like Tiffany's Knot and Cartier's LOVE Collections stand out from commodity offerings. More importantly, brand image carries a deeper resonance with consumers-Hard Luxury purchases are increasingly associated with fidelity and transparency. The De Beers Sustnability Study found that an astonishing 32 of Chinese consumers purchased jewelry due to its sustnability credentials.

The collaboration between Tiffany Co and Supreme, which targets a younger, lifestyle-conscious audience, exemplifies how Hard Luxury experiences ext beyond traditional product-based offerings. This demonstrates the broader appeal of branded experiences across diverse demographics.

Chinese consumers are increasingly turning to heritage gold jewelry as they seek inspiration closer to home. A World Gold Council survey from 2021 highlights the rising popularity of such pieces that cultural and national identities, underscoring a growing tr in traditional luxury goods consumption.

Physical retl remns central to Hard Luxury business. In March 2022, Breguet inaugurated new boutiques at Beijing's Wang Fu Central and Nanjing Road in Shangh. While online sales are becoming increasingly pivotal, they're transforming consumer behaviors. For instance, diamond jewelry sales on platforms like Tmall, Taobao, and JD witnessed a staggering year-on-year growth of 49 in the first quarter of 2021.

The democratization of Hard Luxury in Mnland China is fueling new growth opportunities for astute marketers while also reshaping the perception of what defines this market sector. The recent Omega x Swatch Speedmaster collaboration exemplifies both the allure and potential risks associated with Hard Luxury's newfound accessibility.

For brand managers navigating this landscape, the essence remns clear: controlling the brand image is fundamental to success in this industry. Fling to appreciate this could result in being left behind, merely looking backward at better days that might have passed.

Glyn Atwal is an Associate Professor at Burgundy School of Business France, contributing insights through co-authorship on Luxury Brands in China and India Palgrave Macmillan.

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