The market for luxury goods in China, while growing very fast is also maturing rather quickly. The high profile luxury brands are obviously doing well in the booming market but there is a perceptible shift from flashy logos to more understated luxury brands. The French fashion house Chloe is a clear beneficiary of the trend. Geoffroy de la Bourdonnaye, CEO of Chloe, who was in Shanghai, feels that the wealthy in China are looking for interesting brands that bring something extra with the product.
Price Waterhouse Coopers, the renowned consultancy has projected the Chinese luxury market to become the world’s largest buyer of luxury products such as cosmetics, handbags, watches, shoes and clothes, as early as 2015. Chloe is in a position to take advantage of this growth. They plan to expand from 10 boutiques in China to 14 by the end of the year. Their ultra feminine, casual clothes in muted colors have received an enthusiastic response in the Chinese market. They have been in China for five years and it is headed to become their second most important market.
Chloe can boast of several fashion heavyweights who served them as their artistic director. They are currently headed by the British designer Hannah MacGibbon. Chloe, which was founded by Gaby Aghion in 1952 adapts a different approach than the others. They would be cashing in on the growing demand but at the same time make sure that they do not over expose themselves. No doubt they have adopted a very balanced strategy in China.