China has emerged as one of the biggest market for designer brands and designer brands are leaving no stones unturned to capitalise on this growing demand. Prada is one of the foremost brands that have made successful inroads into the Chinese market. It recently showcased its Spring 2011 collection in Beijing in front of the country’s rich and famous. The collection has already been shown at Milan but they decided to hold a special show here to make sure their latest clientele got a good look.
Ermenegildo Zegna debuted a collection in Shanghai last July and Karl Lagerfeld staged a Fendi show on the Great Wall in 2007. Diane von Furstenberg has also expressed interest in expanding in China. According to Bain & Co. luxury products in China surged 20% to €9.2 billion, or $12.1 billion, in 2009.
In terms of consumer goods, China is the dominant player in the world, with every other thing having a “Made in China” tag. But when it comes to luxury goods, the country has very few indigenous brands. And considering the growing appetite of Chinese citizens for luxury goods, the county is like a gold mine. The only problem is to maintain their elite status while reaching a larger Chinese audience.