Luxury Brands and Deriving Fashion Meanings in a Media Context in Hong Kong

Abstract

Given the economic slowdown in the West and the ongoing financial problems in the Eurozone, it is not surprising that both mainland China and its territory of Hong Kong are particular draws for global fashion retailers heading to greener pastures. By 2014, China is forecast to become the largest consumer market for luxury goods, with consumption rising to US$ 14.6 billion (European Business Review 2013). Compared with the US, as the world’s largest industrialized country, China’s gross domestic product (GDP) per head, at US$ 3,270, is around 15 times less than that of the US, at US$ 46,350. However, China has 1.3 billion people versus the US, which has a population of 308.8 million (The Economist 2011). Attractive factors for overseas luxury brand manufacturers and retailers include the burgeoning Chinese middle classes in mainland China and Hong Kong, who have a rising propensity to spend on consumable products aided by an increasing Chinese population and the rising pace of industrial and commercial developments. China and its Hong Kong territory are very attractive propositions for brand manufacturers seeking to grow existing brands or to establish new ones.

Research conducted by Bain & Company (2010) lends some support for the above. The top ten brands that mainland Chinese consumers desired the most in 2010 were: Louis Vuitton, Chanel, Gucci, Armani, Christian Dior, Rolex, Cartier, Hermès, Prada, and Lancôme. As of December 2011, the order of preference had only slightly changed: Louis Vuitton, Chanel, Gucci, Christian Dior, Armani, Hermès, Rolex, Cartier, Prada, and Burberry (Bain & Company 2011).