IT Consultis

🐾 Imitation brands are THRIVING in China – how can luxury remain iconic? 2024 has seen a notable shift in consumer behaviors driven by economic uncertainty and consumption downgrade trends, especially in the China market. 💵 As consumers become more RATIONAL and VALUE-CENTRIC in spending, they are increasingly drawn to cost-effective alternatives, ranging from mid- and lower-end brands to white-label products without brand logos and “imitation brands”. While white-label brands offer budget-friendly products by skipping traditional branding and using channels like live streaming and e-commerce to sell directly to consumers, their appeal tends to be short-lived, as flashy promotions and market positioning fail to sustain consumer interest over time. 💥 Meanwhile, "IMITATION brands" are quietly gaining ground as a standout phenomenon. Unlike traditional counterfeit products, these brands emulate the aesthetics and product offerings of luxury names while operating as LEGITIMATE businesses. With branding, visual systems, and even offline presence, they offer style and quality at a fraction of the price to pragmatic, middle-class consumers. 🛍️ Interestingly, this trend is also closely linked to growing consumer CONFIDENCE in DOMESTIC products. The recent Kearney’s China Consumer Research reveals that 52% of consumers intend to increase spending on domestic brands going forward, compared to just 27% for global brands. Amid economic uncertainty, “LUXURY SHAME” has emerged, where consumers shy away from high-end purchases to avoid appearing insensitive to broader socioeconomic conditions. The result? A growing acceptance of “imitation brands” as savvy choices rather than compromises, signaling a major cultural shift.  🧩 So, what does this mean for luxury brands navigating the Chinese market? As I mentioned in my recent posts: Brands need to PROACTIVELY maintain their edge - bring luxury back to its true essence by elevating quality, creativity, storytelling, and services/experiences - in an authentic, relevant, and seamless way, ensuring they stay iconic, irreplaceable, and deeply resonant with the evolving demands of smart consumers. Luxury brands must be agile, carefully assessing their own trade-offs and refining their value positioning in this competitive market. What do you think of the rise of imitation brands? Share your take below. Thanks to Eva Liang at Vogue Business, as well as Kearney for the interesting insights. #Copycat #Authenticity #Luxury #ConsumerBehavior #China

🚀 We’re proud to continue our partnership with the esteemed Banyan Group, advancing their global digital transformation journey. Our latest achievement is the LAUNCH of the Banyan Tree Escape website, part of a comprehensive website revamp across their portfolio 🌿 The goal is to help: 🔹 Enhance user experience with a seamless, engaging digital journey  🔹 Strengthen global visibility for the Escape brand  🔹 Enable more seamless and independent #ContentManagement capability for individual hotel managers, ensuring operational efficiency. 🌟 Ultimately, the website revamp aims to drive significantly more web TRAFFIC and CONVERSION rates, aligning design with the brand’s strategic business goals. 🤝 It was truly a pleasure to continue collaborating with the Banyan Tree team in their ongoing journey to elevate their digital presence across APAC, showcasing their diverse and exceptional portfolio of hospitality brands. Thank you for the opportunity to contribute to your success! Valerie Chua #APAC #WebDevelopment #WebDesign #CMS 

With shifting sentiments around luxury pricing, how can brands WIN BACK consumer trust? Following my recent post on luxury price hikes, I have a few thoughts on what this means for brands navigating today’s evolving market dynamics: 💣 The situation reveals a DEEPER ISSUE beyond rising costs. The latest Bain luxury study reveals that the Net Promoter Score (NPS) has DROPPED to a record low. Many consumers complain that they are paying more yet receiving what they perceive as less in return – quality is falling, creativity is lacking, storytelling is missing, and service is weak, making luxury feel increasingly TRANSACTIONAL. 📉 Bain also projected that, between 2022 and 2024, the luxury market has LOST OVER 10% of its high-end consumer base (40 - 50 million out of 400 million). This is the very first time in recent history that the luxury customer base has shrunk, after years of brands successfully capturing the growing middle class.   This means the core issue is about the MISMATCHING values that accompany luxury purchases, and the failure of brands to live up to the expectations they set. This gap has not only driven away aspirational customers but also disappointed the core customers and the VIPs/VICs. It’s high time to bring luxury back to its true essence! ⚖️ While pricing can be an effective tool for managing demand and exclusivity, that alone is no longer enough. Brands need to balance their own price-value positioning and deliver what clients trust them to bring to the table in quality, creativity, and storytelling - in an authentic and relevant way. ✨ Above all, luxury is about CLIENT-CENTRICITY. The key to success still lies in deeply understanding your customers. This requires brands to capture customer data and leverage Customer Relationship Management (CRM) tools (including with clienteling) effectively to deliver a truly personalized, relevant, and premium customer experience throughout their journey – both online & offline and across borders. 🚀 This December marks one year since Salesforce officially launched in China; and it’s already contributing to transforming CRM for top luxury brands. Many global players have long awaited a unified system bridging global & local CRM, and Salesforce is filling the gap. Thank you Bain & Company and Altagamma for the in-depth report! What do you think of this shift in the luxury market? Share your take below in the comments. #LuxuryPricing #CRM #Clienteling #China #Salesforce

✈️ Chinese tourists are coming back as VALUE SEEKERS, but not (necessarily) big spenders.    After years of pandemic restrictions, Chinese outbound tourism is making a RESURGENCE in 2024, bringing a much-needed boost to global economies.  🌏 In 2019, China was the world’s largest source of international tourists, with 155 million trips and $255 billion spent. 🔍 Fast forward to today, while outbound travel is indeed bouncing back, the recovery pace in traveling frequency and spending, especially among affluent households, is NOT AS FAST as expected. For 2024, both Oliver Wyman Asia Pacific and Goldman Sachs project Chinese outbound travel to have reached AROUND 90% of 2019 levels at most. The latest Oliver Wyman Chinese Travelers Survey also reveals that ONLY A NET 3% of 2024 Chinese overseas travelers anticipate increasing their spending in 2025. This is partly attributed to slower economic growth and a dip in consumer confidence, making travelers more SELECTIVE in their spending, driving several diverting trends:    🛂 Preference can be observed for locations like Japan for the attractive rates; Malaysia and Vietnam for the relaxed visa policies; while others – such as Europe – may not see as strong of a rebound due to limited direct flights and complex visa requirements.    💎 While luxury goods are still part of the travel experience, today's Chinese tourists are prioritizing DEEPER, MORE MEANINGFUL EXPERIENCES (e.g., local traditions, outdoor adventures) over purely materialistic purchases.    Millennials, in particular, are also driving the demand for "DUPES" of luxury items.    So, what does the future hold for the rebound of Chinese overseas travel and spending? 📈 Looking ahead, while immediate growth might not be expected, the long-term potential remains strong, with current levels already approaching those seen in 2019. 🌟 As the demand for STREAMLINED, PERSONALIZED, AND AUTHENTIC EXPERIENCES is at an all-time high, success will hinge on how well the travel industry and brands meet, or even exceed, these expectations - creating more relevant, deeper connections that resonate with today’s consumers' values and aspirations. What do you think of these new shifts? Thanks to Mingjie Wang at China Daily and Avery Booker from Jing Daily, as well as Oliver Wyman Asia Pacific and Goldman Sachs for the insights. #ChineseOutboundTravel #LuxuryTourism #PostPandemicTravel #China #CRM

💸 Luxury pricing: Has the price surge GONE TOO FAR?    In the last five years, luxury brands like Chanel and Louis Vuitton have raised prices for many products, with some items seeing their prices DOUBLE. While this strategy was intended to enhance exclusivity and boost revenues, it ended up ALIENATING a significant portion of the market.    So, what are the true costs of this “misstep”?    💥 The latest Bain-Altagamma Luxury Study reveals that OVER HALF of luxury consumers consider luxury brands to be overpriced.      📉 Between 2022 and 2024, the luxury market is also projected to have LOST 50 MILLION high-end consumers (out of 400) due to the high-price policy.    Moreover, although 45% of luxury market revenue is now generated by the top 2%, the VICs, they increasingly FEEL LESS “VIC”, due to flattening, increasingly transactional shopping experiences.    Claudia D'Arpizio from Bain emphasizes that this price elevation strategy has left a huge gap in the market, forcing luxury brands to compete not only with each other but also with mass-market retailers and resale platforms.    So, how should brands navigate to win back consumers’ favors?    🎯 A recalibration of priorities is essential. Brands must move beyond chasing price hikes and refocus on what luxury truly stands for: EXCEPTIONAL QUALITY, TIMELESS CREATIVITY, and AUTHENTIC & RELEVANT EXPERIENCES that deepen connections with customers.    💎 Additionally, each brand needs to define its own trade-offs to position its path ahead - respecting brand heritage while reaching a broad (enough) audience.    While the total luxury sales dipped by 2% in 2024, the appetite for luxury is not lost. Those that make the right investments in the right initiatives to build better-personalized connections and stronger positioning can emerge as winners, driving engagement and sales.    What are your thoughts? Is exclusivity enough to justify these high prices, or does the future of luxury require a more innovative approach?    Thanks to Dominique Muret at Fashion Network and Imran Amed of The Business of Fashion, together with Claudia D'Arpizio from Bain & Company for the great insights.    #Luxury #PricingStrategy #BrandValues #China #MarketInsights  

🔍 Is 2024 the TURNING POINT for China’s consumer market?    While consumption continues to be the main engine of economic growth in China, its pace has SLOWED considerably compared to previous years:    📊 Total retail sales of consumer goods reached 35 trillion yuan in the first three quarters of 2024, marking a 3.3% YoY increase. However, the growth rate has dropped from 6.8% in the first three quarters of 2023 to just 2.7% in Q3 2024, signaling persisting challenges ahead.    How can brands stay prepared? According to Kearney China Consumer Research Data, here are some KEY TRENDS reshaping the China consumer market: 🛍️ Although consumer goods retail grew by just 5.8%, categories related to self-care and health saw strong rebounds with growth rates of over 10%. Meanwhile, EXPERIENTIAL services saw an impressive 20% growth, reflecting a strong return to out-of-home activities post-COVID. 💸 DOMESTIC brands are WINNING favor among Chinese consumers, with 52% intending to increase spending going forward, versus just 27% for global offerings. This preference is driven by the greater value and cost-effectiveness that local brands offer in the current practical, budget-conscious economy. 🛒 Consumers are taking longer to make purchasing decisions, with a more thoughtful, RATIONAL approach. Though social media and short videos continue to thrive - driving 80% of product discovery, consumers are increasingly skeptical of ads and rely more on real feedback to guide their choices. 🌐 Traditional e-commerce marketplaces like Taobao, Tmall, and JD.com remain dominant, but SOCIAL COMMERCE (e.g., WeChat, Pinduoduo, Douyin) is still gaining traction. By offering affordable prices, rich consumer interactions, and better after-sales support, social commerce is leveraging its massive daily active user base to boom and eat into market share. At the same time, OFFLINE physical channels, though having been overshadowed by e-commerce and seeing many closures recently, are also finding their NICHE through experiential retail models, adding meaningful values to the customer journey. 📈 Overall, as consumer confidence and preferences continue to shift, UNDERSTANDING local nuances and adapting to market changes will be crucial. Brands, whether global or local, that invest in tailored, relevant experiences for Chinese consumers – both online and offline – will capture attention and remain competitive.    What do you think about these shifts in China’s retail landscape?    Thank you 贺晓青, 王娅欣, together with 李古岳、陈霖裕、华雨菁、周坤仪对 from Kearney for the valuable insights.   #Retail #China #Ecommerce #BusinessTransformation #ConsumerBehavior