There is no denial that Asia has become an increasingly important market for high end luxury brands such as Louis Vuitton and Hermes. Such demands for luxury goods even push these powerful companies into making products specifically for a certain demographic, such as Herme’s Saris crafted specifically for India, and Audi and BMW‘s extended models specifically tailored for the Chinese market. Despite the exponential growth as a result of market expansion into Asia, there are still lessons to be learned for each luxury company as they are still unfamiliar with the marketing they are breaking into.
As mentioned in Timmy Cheung’s blog post, customer service is a key attribute in the luxury goods sector; however the amount of customers that go in and out of the store has seriously deteriorated the supposed quality of customer care as employees fight for commission instead of focusing their time on providing customers with a satisfying experience before, during, and after a purchase. Furthermore, in some areas like in Hong Kong, the employees target mainland Chinese and foreign customers, neglecting the local rich Hong Kong residents that are possibly just as well-off. As a result of this, these potential customers feel mistreated, if not unwelcomed.
In one extreme case a Hong Kong reporter was threatened to have his camera destroyed after he took a picture of a new D&G store that opened recently, then being told that anyone but Hong Kong residents are allowed to take photos of the store. This led to a outrage and thousands gathered in front of the store demanding an apology for the discrimination against the locals. The poor PR handled by D&G has ostracized many potential customers, and the freedom of press in Hong Kong has allowed such news to spread globally, potentially damaging the company’s image and its core values. Forbes has a good article that outlines the disaster as a result of this action, notably on the failure of delivering a proper apology. It is likely that D&G will have to deliver an official apology at some point, but by the time they come up with one the damage cannot be reversed.
One reply on “Attitudes Towards Different Demographics”
It’s always tricky to figure out exactly how to tap into an international market, but once marketers find out what consumers of the nation are demanding it can be super successful, great post Raymond!