Research On The Creation Of Luxury Brands In China

In 2017,the global market for personal luxury goods reached 254 billion euros,which is a very large industry.At present,China's worldwide luxury consumption has become the largest in the world,accounting for 32% of the world total in 2017.However,luxury consumption of local market accounts for only 1/3 of overseas market in China,The number of local luxury brands only accounts 4 of the top 100 luxury enterprises in the world in 2017,which has little effects.Compared with the impacts of China's brands in mobile phones,computers,the Internet etc.,the development of China's local luxury industry is very little.Firstly,this paper reviews the current research of luxury industry,then makes a detailed study and analysis of the development status of luxury industry at China and abroad.We found that it is worth to learn the successful experience of American luxury industry for China,and to summarize the successful factors of American luxury industry.Furthermore,this paper adopted qualitative research method.We constructed the research framework based on international industrial competitiveness theories,and analyses Chinese luxury industry systematically based on Porter's "Diamond Model".We also analyses the problems,opportunities and challenges from four aspects of diamond model.Finally,we found that in terms of factor conditions,there is a big shortcoming in the human resources of high-end designers in China.There is a big gap between China and developed countries,such as Europe area and the USA in the field of high education of art design.In terms of demand conditions,they will continue to increase in China.Its share of the world market will continue to increase too,which will provide a good developmental opportunity for the China luxury industry.In the related industries,we did the researches on the upstream,middle and downstream industrial chain of luxury industry in detail.The shortcomings are of the culture and art industry of the upstream and the low level management of luxury companies in the middle.In terms of the role of government,we found out that the influence of the government could be divided into two kinds: direct and indirect.Due to the lack of industrial support policy,the direct impact of government is no help for the local luxury industry.But in the indirect aspect,continuous attention and policy support from the government in national brand development,art and culture industry development,intellectual property protection will help the development of local luxury industry indirectly.In terms of challenges,this paper points out that the main challenges are the lack of knowledge resources in art and cultural design and the strong competition from international luxury brands in the market.In terms of opportunities,we found out that there are two kinds.One is the opportunity of industrial change brought by electronic commerce and internet marketing,the other is the improvement of national strength and local cultural confidence of the Chinese people.Chinese brand reputation are rapidly increasing.It is very conducive to the development of local luxury brands.This paper provided some suggestions for the development of Chinese local luxury brands.First,the government should strengthen the support of high-end art and culture industries and support the development of luxury industry direct.Second,the local luxury industry should seize the chances from the internet technology revolution.Third,we should learn from the experience of American luxury industry.