Recent conflict with Hong Kong Residents (‘Hong Kongers’) and luxury fashion brand Dolce & Gabbana has created an interest for me to talk about marketing in the luxury goods market sector and its affects in the growing demand for luxury good in the Chinese Market.
High-end luxury brands such as Louis Vuitton, Chanel, Hermes, etc. has always marketed their products to be exclusive and only for those who are elegant, classy and enjoy a tasteful lifestyle. Furthermore, in order to charge a premium on these products, luxury brands must used genuine materials and quality craftsmanship, and most importantly an attentive group of staff to provide outstanding customer service.
Millionaires and even billionaires emerge everyday in china with the enormous amounts of ‘new money’ entering China, creating a brand new social class within the Chinese: the ‘nouveau riche’, the newly rich. With so much money circulating in the hands of these ‘nouveau riche’, they are eager to spend it on international luxury goods. Many large corporations such as Louis Vuitton Moët Hennessy (LVMH) has realized the potential profit from these Chinese ‘nouveau riches’ and quickly signed multimillion dollar monthly leases to boutiques on the now infamous Canton Road in Hong Kong.
With intensive marketing within Asia, the more than 5 Louis Vuitton stores in Hong Kong, including the world’s 2nd largest flagship store on Canton Road, it is still not enough to reduce line ups to get into these prestigious stores. As these stores get busier, they fall short in providing a red-carpet customer service. Now, there luxury brands are filled with rude and discriminating sales associates who fight for customers who earn them the most commission.
This lack of customer service and the presence discriminatory attitude has led to a protest in Hong Kong in front of the Dolce & Gabbana store on Canton road.
Why shall we pay a premium to be discriminated in return?