Wednesday, August 4, 2010

Chinese luxury try candidate, of "Made in China to get rid of the picture"

Billionaire Warren Buffett, often called the Oracle of Omaha, has seen the future of fashion in the most unlikely places, preferably with a "Made in China" label on known for its cheap chic.

"I have thrown the rest of my costumes," Buffett video bar in 2007 and added that he and Microsoft (MSFT.O: Quote, Profile, Research), Bill Gates fans of the Chinese manufacturer of costumes and would be a big sellers Trand be for the company in the northeastern Chinese city of Dalian.

Bertrand is one of a handful of new Chinese brands hope one day to take you from Gucci, Armani and Prada in the lucrative market for luxury goods.

The sale of luxury goods in China by 12 percent in 2009 to $ 9,600,000,000, which 27.5 percent of the world market for Bain & Co in the next five years to increase luxury spending in China, to 14.6 billion U.S. dollars.

Buffett can make annotations fun food for the Internet, but analysts say that the crop of emerging Chinese luxury-seekers a long hard struggle, the global heavyweights face more than a century, and huge marketing muscle.

To make matters is a long-standing partnerships, "Made in China" label of poor quality and mass market product, compared with the exclusive "Made in Europe" moniker matches.

"In the short term Do Not believe that any luxury brand to compete with the Chinese in terms of international marketing, brands, culture, design and quality," said analyst Marie Jiang, JLM Pacific Epoch.

China is expected to become the world's largest market for luxury goods in five, seven years ago, driven by Increasingly affluent and brand-conscious consumers who want the best of all, a study by the Boston Consulting Group, said in January.

This market has been dominated by big Western names Largely, most of which have branches in Shanghai and Beijing, and begin to look at smaller cities as well.

But the national brands such as Trand try to raise their profile at home and abroad to a piece of the lucrative luxury cakes.

Ports, another producer of luxury fashion founded in 1961, has its own touch courting celebrity and clothing sponsorship for the 2006 movie "The Devil Wears Prada."

CONSUMER meticulous

Applicants for Chinese luxury brands can be his toughest fight in the front, where buyers often prefer big international names such as French LVMH (LVMH.PA: Quote, Profile, Research) or Hermes (HRMS.PA: Quote, Profile, Research) that carry more authority and more than a century.

One of the few brands which formed something like an international following of Shanghai Tang, a costume designer chic with colorful Chinese subjects in Hong Kong, and now get with shops all over the world.

"They are fully aware, is a bit exhibitionist attitude and what we have seen is that if they have money to spend, they TEND to well-known brands," said Renee Tai, analyst at CIMB-GK to Research, based on Chinese consumer .

Chinese brands could provide a difficult road ahead of us, even as global brands, the growing wealth of China to start the main campaign to expand in the country, including the opening of shops in the the cities of the second and third level.

Louis Vuitton opened its largest store in the world in Shanghai this year. Last year, LV has stores in second-tier cities opened Xian, Xiamen and Tianjin.

London's upscale Harrods department store are so rumored in talks with the city government of Shanghai to open its first branch outside the United Kingdom.

The international brands are so Adapting to China, with Hermes to launch a new brand, "Shang Xia 'luxury accessories at better prices, only to China.

"They are to compete and I think in terms of what is capable of a dominant position in the market at any given time," said KPMG partner Stephen Mercer Shanghai.

He said China's luxury brands could succeed in niche markets such as liquor and jewelry, with Moutai (600519.SS: Quote, Profile, Research), a Chinese mind that what Richard Nixon during his famous trip to China during his presidency, as an example .

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