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The shine has returned to hard luxury in China. According to Bn, sales growth for jewelry and high- watches soared by approximately 35 and 30, respectively in 2021. Although brand performance varies across the industry, Swiss watch exports witnessed significant momentum over 2019 48.8. This market surge highlights a disruptive dynamic within hard luxury that is reshaping traditional brand-consumer relationships.
Brand Image:
Chinese consumers are looking for labels that reflect their desired social status or projected personality, which bodes well for companies investing in building strong brand equity. A Deloitte study revealed that brand image ranks highest as the deciding factor for Chinese consumers when purchasing a luxury watch followed by pricevalue proposition in the US. Intriguingly, this preference is also gning traction in branded jewelry markets projected to reach 25-30 of global sales by 2025. Notably, easily recognizable pieces like Tiffany's Knot and Cartier's LOVE Collections stand out from commodity clutter, yet brand image resonates deeper with consumers. Hard luxury purchases are increasingly influenced by fidelity and transparency: a De Beers study found that sustnability is driving an astounding 32 of Chinese consumer acquisitions.
The Tiffany Knot campgn featuring Eileen Gu sparked considerable social media attention. Photo: Courtesy of Tiffany Co.
Lifestyle Statement:
While hard luxury purchases were once driven by investment value or gifting, especially among older demographics, there's now a tr towards it serving as a lifestyle statement. A 2021 World Gold Council survey indicated that Chinese consumers are increasingly attracted to heritage gold jewelry consistent with their interest in traditional culture. Houses like Kering-owned Qeelin celebrate cultural heritage through modern designs while Liu Wei x Roger Dubuis explores contemporary Chinese artistic influences. Still, the core essence of luxury brands remns controlling brand image.
Finance:
A physical retl network remns essential for hard luxury businesses. In 2021, Breguet opened new boutiques at Beijing's Wang Fu Central and Nanjing Road in Shangh. The growth of offshore duty-free sales in Hnan also benefited watches and jewelry sales second to perfume and cosmetics. However, the digital space is not being overlooked; Blancpn launched a WeChat pop-up boutique where 81 pieces of the Fifty Fathoms Limited Edition sold out instantly. High- watch groups like Vacheron Constantin have ventured onto Tmall's Luxury Pavilion. As online sales gn favorable reception, jewelry sales on platforms such as Tmall, Taobao, and JD increased by 49 year-on-year in Q1 2021.
Breguet opened a new location at Beijing's Wang Fu Central in March 2022. Photo: Breguet's Weibo
The democratization of hard luxury in mnland China is unlocking new growth opportunities for astute marketers while shifting the understanding and appreciation of what makes hard luxury unique. The latest Omega x Swatch Speedmaster collaboration exemplifies this shift towards accessibility and familiarity. For hard luxury brand managers, controlling brand image remns a foundational element of business success. Flure to appreciate this risk relegation to looking backwards instead of forward.
Glyn Atwal is an associate professor at Burgundy School of Business France. Co-author of Luxury Brands in China and India Palgrave Macmillan, he explores how hard luxury brands are evolving under new market conditions.
Glyn Atwal, Associate Professor at the Burgundy School of Business France and co-author of Luxury Brands in China and India Palgrave Macmillan, delves into the transformative impact that has revitalized hard luxury markets in mnland China.
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Chinese Luxury Market Recovery Swiss Watch Exports Surge Brand Images Impact in China Sustainable Jewelry Acquisition Trend Digital Platforms for Watches Jewels Hard Luxury Lifestyle Statements