Industry background Luxury goods market has been on an upward move since a long time. Separated from the setback brought about by the 1997 Asian financial Emergency, the business has performed well, especially in 2000. In that year, the world luxury products market – which incorporates beverages, style, makeup, aromas, watches, adornments, baggage, purses and handbags– was worth near $170 billion and these developed 7.9 ... ... middle of paper ... ...s with famous models . Besides, Louis Vuitton pushes its items with Chinese stars Zhang Ziyi to draws in Chinese market. 4.
Present Situation in Global Economy Louis Vuitton (LV) brand is also implementing its worldwide battle against counterfeiting. And Asian is a large market for selling its products. However, Chinese consumers purchase LV products from Europe because of high exchange rates and import tariffs. Market Trends Individual brands are bought up by large luxury groups. And large companies experience much higher margins because of brand recognition, advertising, and optimal brand portfolio management.
These consumer beliefs have opened the doors for functional and health-focused beverages like ours. RTD teas such as President, Master Kong and... ... middle of paper ... ...et as, from the analysis on the China market. Also from our analysis we know that people of China with their high disposable incomes will willingly pay a premium price for the latest products. Chinese consumers regularly have demonstrated a keen desire to pay a significantly higher price for products that provide a sense of prestige and sophistication. In 2011, China became the third largest market for global luxury brands, accounting for almost 25 percent of global sales of consumer luxury products.
The high customer relations have allowed the company to constantly provide and improve its product and service quality. This means that the company’s priority is quality for the products and services they offer to its clients. The quality culture has enabled the company to be successful in the retail industry with excellent customer satisfaction ratings (Pahl et al, 2007).
7). As such, many companies have capitalised on this trend and increased their shares in China’s skin-care market (Lin, 2013). Although Nivea (refer to Appendix A for company profile) already owns a significant market share in China (Mobius, 2013), we still rely heavily on European markets for revenue (MarketLine, 2012). MarketLine (2012) reported that 60.6% of our revenue came from the European markets. Due to the Eurozone Crisis, European countries are facing depressed economic activity.
Through strong family structures, and high educational standards, the middle class in China has gained strength in order to aspire for an improved lifestyle. China is now the forerunner in the luxury sector with a society that is fueled by productivity, with a growing economy, an increasing population, and a demand for luxury products as those who were not able to attain wealth once before have gained access that was once rarity in the past. According to the World Luxury Association, China is the world’s second largest luxury market only surpassed by Japan. With 1.3 billion consumers and double-digit growth rates, Chinese consumers were responsible for 1... ... middle of paper ... ...s to the finer things. Niche markets have to be determined in order to reach the Chinese consumer who is unafraid to purchase goods that appeal to the senses, covey status, wealth and higher quality.
China stands out for the explosive growth in its industrial segment, which in turn was fueled by China’s willingness to act more quickly and aggressively to lower its trade barriers and to draw foreign investment. In contrast, Ind... ... middle of paper ... ...kets. Their economic systems subdued growth and left both countries in poverty. In 1980, per capita income stood at $556 in China and $917 in India (Department of State, 2010). To boost their economies, China and India shifted strategies, letting private enterprise prosper and opening markets to foreign trade and investment.
In total, 1,500,678 BMW, MINI and Rolls-Royce brand cars were sold during 2007, an increase of 9.2 % compared to the previous year. The number of BMW brand cars sold rose by 7.7 % to 1,276,793 units. The MINI achieved a particularly encouraging increase. This brand recorded an 18.5 % rise, with 222,875 units handed over to customers. The Rolls-Royce brand also reported strong volume growth (+ 25.5 %) in 2007.
An increased amount of debt owed to China therefore works to counter the US influence in world politics in favor of China. Moreover, this has aided to keep the interest rates in the US low. This is to the advantage of the US economy though. Were the interest rates to rise, the recession of the US economy would soar uncontrollably. Therefore, the holding of a big US debt by China leads to China having huge influence over US policies; foreign relations policy and also economic policies.
3. 1.2 Industry Players When it comes to commercial and residential properties, China has several industry players. First on the list are the property developers. According to ibisworld.com, Over the past few years, the revenue for the real estate development is expected to reach $1.25 trillion and with an annualized growth rate of 17.1%. The strong demands for the residential properties have given property developers a strong position in the market place; especially now that household incomes are increasing and low interests rates are lend by banks in China, which gives more people a chance to buy their own properties.