On June 20, 2018, ESLSCA Business School Paris held its Master Class on the theme of the Silk Road.

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When China awakens to Luxury: A look back at last night's conference
News

June 21, 2018





Based on the architect database books by Michel Chevalier and Pierre Xiao Lu "Luxury in China: Economic Potential and Marketing Approach" and "When China Awakens to Luxury: The Rise of Chinese Brands", various points were raised:



Financial elements on the luxury sector:

“In France, luxury represents 20% of the CAC 40,” explains Michel Hayoun, Director of the MBA Program in Luxury and Fashion Management and Marketing.
Luxury in 2018 : Luxury turnover increased again by +6 to 8%. Today, China is a major player in luxury: the leading country for luxury consumption. The staff of each establishment must know a few words in Chinese to better welcome customers.
A global market of 280 billion euros : France remains on the podium with a turnover of luxury manufacturers at 85 billion euros, Italy is at 55 billion euros and China comes in 3rd position with 33 billion euros.


China, factory of the luxury world:

The Chinese Strategy : First, China buys French or Italian products. Secondly, it creates its own brands. There are many examples of Chinese brands: Stella Luna, Esprit, Giada, MO&Co, Anteprima, Qeelin (bought by Kering), Ports… Few people know that these brands are Chinese.
The Silk Road: China, Bangladesh and Pakistan produce 65% of the world's textiles.


The development of luxury brands, the new Chinese ambition:
Today, China is no longer content with manufacturing luxury products; it is also buying up Western brands.

A Chinese group like FUNG owns prestigious brands like Cerruti, Sonia Rykiel, Delvaux. Fosun bought Lanvin, Saint John, Follie Follie, Caruso and IRO. Shandong Ruyi owns Bally, Sandro Maje Claudie Pierlot,… They aim to become the Chinese LVMH
The acquisition of Western brands by large Chinese groups is accelerating
"In 2025, there will be at least 5 Chinese luxury brands on Avenue Montaigne " says Michel Chevalier (compared to just one at present).


ESLSCA Business School Paris warmly thanks the speakers as well as Mr. Buon Tan , Deputy of Paris, who did us the honor of introducing this conference.