Why are there relatively few luxury goods among China’s consumer brands?

Why are there so many luxury brands in China? Let’s take a look at Europe. In the 1930s and 1940s, Europe had already achieved industrial modernization. At that time, we were still in the Republic of China period, and society was turbulent. At that time, they had already started to build brands and had the concept of luxury goods.

Looking at China again, it was only after more than 40 years of reform and opening up that we gradually developed brand awareness, and the concept of “brand” itself is an imported product, originating from the West. So we can find that in the past 40 years since the Chinese began to build brands.

First, we lack the genes for luxury goods.

Second, we do not have an environment to cultivate luxury goods, including the market environment and the lack of professional talents and organizations to operate luxury goods.

Third, our market does not provide mature conditions for local brands to build luxury brands. In the early stages of development, when China’s market system was not yet perfect, we still admired foreign brands and preferred European and American luxury goods. These are the reasons why China has not seen a large number of luxury goods in the consumer goods sector.

So, when many brands try to create luxury, I often ask a few questions.

First, I would ask them whether they themselves have the genes for luxury goods, such as whether the living environment of the founder since childhood is rich both spiritually and materially.

Second, the situation of the surrounding circles, such as whether there are people engaged in luxury-related work, such as branding, design, planning, and marketing, who can jointly contribute to the growth of this brand.

Third, after building a luxury brand, are there excellent channels to support it?

This is actually the development path that Chinese luxury goods need to explore in the past, present and future.