The concept of luxery goods are any products with high price and high quality, In th e21st century. Due to the huge change of politics. Economy in China, there are some unexpected problems:
Counterfeit product
One major problem most luxery brand faces is the prevalence of counterfeit luxury product in China, which may cause a diluting the brand’s image. The reasons might be that the majority of population in China are still in middle or lower class income family, many of them couldn’t afford the price. furthermore, since majority of population in mainland China are still living in rural areas, they might lack the awareness to luxury brands. To solve the counterfeit problem, Luxery brand company such as LVMH has signed an agreement with Alibaba and Taobao, the most popular online-shopping and site in China. The agreement include several measurement and punishement for fake luxury products.
Price transparency
Price transparency leads. to a dillema. Since nowadays more and more luxury consumers have been to Europe either for work or shopping, they therefore have the chance to get to local retailers and compare price they found in China.–at least 20 percent higher than they were in areas such as developed county.