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From past times “Made in China” a phrase which has been referred to the fine arts and expertise
in crafts. Western consumers used to come to the eastern land to find and own something rare
such as silk, cashmere, porcelain, ceramics etc. Despite their sufferings in economy due to the
cost savings, Chinese market is boosting itself again with producing high end brands. The
example of Two Chinese businessmen David Tang and Elliot Yuen shows how it is critical to
sustain a global brand since they firstly introduced a Chinese lifestyle brand “Shanghai Tang”.
Although it sustained for eighteen years but Swiss luxury conglomerate “Richemont” become the
leader and Shanghai Tang lacked cash money to run. After the incident the author has made The
A.T. Kearney Luxury Compass focusing three internal and external criteria. The first one is to
create a emotional bond between the owner and the product in a manner that it becomes a daily
necessary. The next one is to invest enough capital, give time to grow and have patience to get
feedbacks which are not possible in a short period of time. The third criterion is to have a high-
end finishing for gaining exclusivity which can offer customised products. The next one is to
target the loyal customers establishing POS. The next criteria are that, the products should be
recognizable. The last one is about the pricing which is not affordable for everyone but specific
consumer base. Among 15 Luxury brands in Luxury Compass one of those is NE TIGER which
blends Chinese culture and history in its western clothes. Its dresses are handmade as well as
customizable for customers. A Chinese cosmetic brand owned by Jahwa, Herborist aims to
dominate the domestic market despite international competition. In spite of initial financial
difficulties, management is still dedicated to this goal. Herborist sets themselves apart in the
upscale market with pricey goods like the $100 day and night cream set. Its Tai Chi line is
especially popular and makes a sizable contribution to sales abroad. Herborist also prioritises
providing excellent customer service, training its beauty consultants through an internal academy
that emulates the methods of high-end stores like Sephora. Similarly, founded in 1996 by Mi
Changhong in Shenzhen, Longio is a watch and jewelry firm aiming to establish the most
expensive watch with their unique product creation and comparably high ranged prices.
Simultaneously, Shangxia a furniture, apparel and home décor brand emphasized on creating
traditional products focusing on their past background. Hermès gave Shang Xia the time and
creative flexibility to establish its brand both domestically and internationally. In Paris, close to
the Hermès and Le Bon Marché boutiques, the brand will launch a second location. Shang Xia's
masterpieces need a great deal of expertise since they are made from rare materials like eggshell
porcelain, felted cashmere, and zitan. Customers interested in learning about China's cultural role
are the target market for their items, which include zitan rocking chairs and hand-carved poker
cards. Wenjun, a renowned Chinese distillery, gained value in 2007 when Louis Vuitton Möet
Hennessy purchased a 55% stake from Jinannchun, the previous owner, who still holds a 45%
stake. This move, along with a fresh, trendy approach, added value to the traditional Chinese
spirit. Wenjun commissioned a London design firm to create a new liquor bottle resembling a
traditional Chinese zither, blending tradition with modernity. The brand expanded to red wine.
Wenjun has delivered baijiu since 1573, so it has centuries of conventional mastery to tap into,
not to say a great topographical area with the perfect climate for this high-quality alcohol.
Wenjun provides special facilities for its VIP clients, allowing them to enjoy the atmosphere,
visit the distillery, and sample the products. These facilities also offer exclusive accommodations
for visitors to stay. In addition to studying the five brands mentioned above, we also looked at
other emerging Chinese luxury brands such as Sea Gull, Tian Wang, Zhaoyi, Queelin, Chow Tai
Fook, Chow Sang Sang, Moutai, Wuliangye, Jenny La Vie, and Shanghai Vive. These brands
combine Chinese and Western elements to attract consumers and have partnered with Western
luxury players, acquired Western competencies, and incorporated Western distribution.
However, changing consumer perceptions of Chinese brands will take time due to the association
with poor quality from the past 40 years. Wenjun has moreover created cutting edge
craftsmanship to guarantee item quality and consistency through their participation with Chinese
baijiu mixologist Wu Xiaoping.