THE WORLD LUXURY INDEX™ China 2013
THE MOST SOUGHT-AFTER
LUXURY
BRANDS
Photo architecturepics.org
In partnership with:
A New Luxury Benchmark is Born.
Created as a way to provide luxury brands with a standardized way of measuring brand interest at an international level, Digital Luxury Group, in partnership with Luxury Society, unveils:
The World Luxury Index.
An international ranking and analysis of the most searched-­‐‑for brands within the luxury industry. © Digital Luxury Group, SA 2 A Market with Untapped Potential.
"ʺThe potential in China is so important. You might have a slowdown there, but the tank is so big. There are so many cities where we have not scratched the potential yet”
Bernard Fornas
Co-­‐‑Chief Executive Officer of Richemont
-­‐‑ Riding the Tiger of Luxury, WSJ, March 18th 2012
The World Luxury Index China 2013.
Covering:
400+
680 million+
brands
6 Key
Segments
searches*
Cars
Fashion
Beauty
Hospitality
Jewelry
Watches
Unbiased insights from the top search
engines in China:
© Digital Luxury Group, SA * From Jan -­‐‑ Dec 2012
4 WHAT ARE THE MOST SEARCHED
LUXURY BRANDS IN CHINA?
© Digital Luxury Group, SA 5 TOP 50 MOST
SOUGHT-AFTER
Luxury Brands in
China.
© Digital Luxury Group, SA 1 Audi 奥迪
26Armani 阿玛尼
2 BMW 宝马
27Tiffany & Co. 蒂芙尼
3 Chanel 香奈儿
28Swarovski 施华洛世奇
4 Estée Lauder 雅诗兰黛
29Jaguar 捷豹
5 Louis Vui`on 路易威登
30Bentley 宾利
6 Lexus 雷克萨斯
31Maserati 玛莎拉蒂
7 Mercedes Benz 梅赛德斯 奔驰 32Rolls Royce 劳斯莱斯
8 Dior 迪奥
33Sheraton 喜来登酒店
9 Porsche 保时捷
34Biotherm 碧欧泉
10 Lamborghini 兰博基尼
35Maybach 迈巴赫
11 Lancôme 兰蔻
36Omega 欧米茄
12 Gucci 古驰
37Lincoln 林肯
13 Hermès 爱马仕
38Borghese 贝佳斯
14 Volvo 沃尔沃
39Hilton 希尔顿酒店 15 Land Rover 路虎
40Clarins 娇韵诗 16 Infiniti 英菲尼迪
41Benefit 贝玲妃
17 Chow Tai Fook 周大福
42Acura 讴歌
18 Cadillac 凯迪拉克
43Elizabeth Arden 伊丽莎白 雅顿
19 Cartier 卡地亚
44Versace 范思哲
20 Clinique 倩碧
45Anna Sui 安娜苏
21 Burberry 博柏利
46InterContinental 洲际酒店
22 Coach 蔻驰
47Rolex 劳力士
23 Ferrari 法拉利
48Guerlain 娇兰
24 Prada 普拉达
49Longines 浪琴
25 Shiseido 资生堂
50Rado 雷达
Data range: Jan -­‐‑ Dec 2012 6 Top 3 Brands by Segment.
CARS
FASHION BEAUTY
HOSPITALITY
WATCHES
JEWELRY
#1
#2
#3
© Digital Luxury Group, SA 7 Brands – Who ’s IN/OUT.
•  Brands entering the top 50 for the first time:
(# 43)
(# 50)
•  Brands no longer in the Top 50: (was # 42)
© Digital Luxury Group, SA (was # 48)
8 A Market Going Independant.
“Many brands expected that an increase in Chinese sophistication would reduce the cultural gap with their overseas consumers. In some cases, it actually contributed to the development of unique local preferences, independent from Western tastes, thus challenging luxury brands in terms of product offering but also opening up the way for new opportunities to grow in the Chinese market.” Pablo Mauron
General Manager China at Digital Luxury Group
Photo Qeelin
Chanel Oversteps Louis Vuitton.
2012 Rank
2011 Rank
Chanel
#3
#5
Louis Vui`on
#5
#3
“Chanel is benefiting from an important level of interest in China, mostly emanating from strong interest from Chinese consumers in its Beauty products, which Louis VuiSon does not have.” David Sadigh
Founder & CEO of Digital Luxury Group
10 Cars Lead.
•  Cars remains the most searched for luxury sector in China
© Digital Luxury Group, SA BREAKDOWN BY SEGMENT
11 How Chinese Consumers Search for Brands?
“Language barriers continue to create complexities between Chinese consumers and Western luxury brands. Almost 40% of searches are for either non-­‐‑official or original brand names, whilst the remaining searches are for their official Chinese name.” Echo Zhiyue ZHOU (周之悦)
China Digital Strategist, Digital Luxury Group
© Digital Luxury Group, SA 12 How Chinese Consumers Search for Brands?
•  Chinese consumers search for brands in various ways, reflecting how they are being remembered in the mainland. Brands should keep this in mind when developing their communication strategies for China, especially new brands entering the market.
Consumer Search Pattern for Brand Names on Search
Engines and E-commerce Sites
1%
6%
30%
3%
10%
20%
English acronyms or others
Non-­‐‑official Chinee name Official original name
62%
66%
Official Chinese name
Variation of search pa`erns between segments:
• The Beauty segment has the highest ratio of Chinese brand names
• Fashion is the segment most searched in brands’ original names, but also in acronyms *Benchmark study and analysis jointly conducted with:
Search engines E-­‐‑commerce sites*
© Digital Luxury Group, SA 13 Differences between Individual Brands.
Tiffany & Co.
Non-­‐‑official name ‘蒂凡尼’, a misspelling of the official one
8%
19%
Non-­‐‑official name ‘凌志’, given by retailers before the brand’s official entry into the China market in 2004, is still very popular Lexus
28%
5%
67%
73%
Searches for ‘古奇’ and ‘古琦’, both misspelling of the official Chinese name
Gucci
29%
The official Chinese name ‘古驰’ is li`le known in China
Estée Lauder
5%
8%
63%
95%
© Digital Luxury Group, SA Estée Lauder is overwhelmingly recognized by its Chinese name ‘雅诗兰
黛’, because of the brand’s consistent communication but also the difficulty to remember the original name for Mandarin speakers
14 Cars
© Digital Luxury Group, SA 15 Top 10 Car Brands in China.
(/)* #1
(/) #6
(/) #2
(/) #7
(+1) #3
(+1) #8
(-1) #4
(-1) #9
(/) #5
(+1) #10
© Digital Luxury Group, SA 16 A Race of Cars.
Top rising brand
Jaguar (+5)
Top declining brand
Maybach (-10)
© Digital Luxury Group, SA Evolution
+5
+2
+2
+1
+1
+1
/
/
/
/
/
-­‐‑1
-­‐‑1
-­‐‑2
-­‐‑3
-­‐‑4
-­‐‑6
-­‐‑10
Rank 2012
29
18
37
32
15
30
1
2
6
9
10
16
42
14
7
31
23
35
Brand Name
Jaguar
Cadillac
Lincoln
Rolls Royce
Land Rover
Bentley
Audi
BMW
Lexus
Porsche
Lamborghini
Infiniti
Acura
Volvo
Mercedes Benz
Maserati
Ferrari
Maybach
17 Jaguar - Rising Star.
Photo autoguide.com
© Digital Luxury Group, SA •
China is now the 1st market for Jaguar. Sales have increased by +74% in 2012, compared with +4% average growth rate for the overall car market
•
The joint venture with Chinese local brand Chery has triggered a lot of interest and is also Jaguar’s 1st joint venture outside the UK
•
The 1st manufacture sector of Jaguar outside the UK is located in China •
Jaguar has paid great a`ention to product customization for the Chinese market (3.0 L engine, long wheelbase, etc.)
•
Jaguar 4S stores in China are equipped with golf practice fields, massage rooms, internet bar etc., to take care of Chinese consumers’ unique needs
18 Jaguar - Rising Star.
“This year Jaguar Land Rover expects its China sales to increase between 20% and 30% over 2012'ʹs sales, while growth in Europe is expected to increase only by a single-­‐‑
digit percentage rate. Total investment in its China strategy over the past three to five years was way past £1 billion -­‐‑ Investment in its joint venture with local car maker Chery Automobile Co. accounts for roughly half. Under its joint venture agreement, JLR also must produce a brand specifically for the joint venture. "ʺ
Phil Popham
Director of Group Sales Operations, Jaguar Land Rover
-­‐‑ Tata'ʹs Jaguar Expects China Sales to Leap Over Europe, WSJ, April 23rd 2013
© Digital Luxury Group, SA 19 Beauty
© Digital Luxury Group, SA Photo Shiseido
20 Top 10 Beauty Brands in China.
(/)
#1
(/) #6
(+1) #2
(/) #7
(-1)
#3
(/) #8
(+1) #4
(/) #9
(-1)
(/) #10
#5
© Digital Luxury Group, SA 21 Skincare is King.
•  The Chinese beauty market is dominated by skincare -­‐‑ unlike most Western and other BRIC markets Breakdown of Searches for Beauty Products in China
© Digital Luxury Group, SA 22 Breakdown by Category.
•  Estée Lauder and Clinique, are winning over Chinese women’s hearts thanks to strong skincare products
2%
12%
6%
22%
22%
26%
60%
17%
81%
94%
86%
56%
57%
30%
15%
9%
Estée Lauder
Lancôme
Dior
%Skincare
© Digital Luxury Group, SA 4%
Chanel
%Makeup
Clinique
Avg. (Top 5 brands)
%Fragrance
23 Victory of Skincare Lines Dedicated to China.
•  Overwhelming brand awareness of Estée Lauder’s ‘Nutritious’ line. At first developed specifically for the Chinese market, the brand is now selling it in western markets as well.
Searches for ‘Nutritious collection’ or ‘Red pomegranate’, the Chinese name of the line
Estee Lauder
22.7%
Lancome 10.4%
77.3%
89.7%
Searches for ‘Génifique’ the most popular product line of Lancôme
© Digital Luxury Group, SA 24 Most Popular Beauty Products.
•  Chinese consumers spontaneously rename products they love using “cute” nicknames, often linked to food
#1 Skincare Clinique ‘Dramatically Different Moisturizing Gel’, known as ‘The bu`er’ (‘黄油’) in China
© Digital Luxury Group, SA #1 Makeup
Benefit ‘dr. feelgood’ makeup primer, known as ‘Piggy oil’ (‘猪
油膏’, widely used in Chinese cooking) in China 25 Most Popular Fragrances.
•  Compared with the highly local-­‐‑specific skincare and makeup segments, preference for fragrances is much more in line with international trends
Top 3 Fragrances in China
#1 Dior ‘J’adore’
© Digital Luxury Group, SA #2 Chanel ‘No.5’
#3 Chanel ‘Chance’
26 Fashion
© Digital Luxury Group, SA 27 Top 10 Fashion Brands in China.
(/) #1
(-1)
#6
(+1) #2
(-1)
#7
(+1) #3
(+1)
#8
(-2) #4
(+17)
#9
(+2) #5
(+2)
#10
© Digital Luxury Group, SA 28 China’s Love Affair with Bags.
•  Bags and wallets dominate the Chinese fashion market generating almost 90% of total interest
© Digital Luxury Group, SA *‘All others’ include: belts, scarves, ties, gloves, cufflink
29 Top Handbag Models.
•  Céline’s iconic ‘it bag’-­‐‑ Luggage, tops handbag models in China, +2 places ahead of its global ranking. 1
2
3
4
5
Models
+2 Céline
Luggage
-­‐‑1 Hermès
Birkin
+4 Chanel
2.55
-­‐‑2 Longchamp Le Pliage -­‐‑1 Hermès
Kelly
Rank vs. Global Brand
© Digital Luxury Group, SA For more information please visit:
www.worldhandbagreport.com
30 Name Helps Product Stand Out.
•  Local celebrity endorsement has played a major role in its popularity.
•  Chinese ‘nicknames’ for the ‘Luggage’ has made it easy to remember. The model is widely renamed ‘囧包’ and ‘笑脸包’ in China. •  The first word refers to a facial expression – a Chinese internet meme-­‐‑ that the bag resembles. The second word means-­‐‑ ‘smiling bag’-­‐‑ also linked to its appearance. © Digital Luxury Group, SA The Chinese internet meme ‘囧’ refers to a facial expression, thought to resemble the Céline Luggage handbag 31 Jewelry
© Digital Luxury Group, SA Photo Bulgari
32 Top 10 Jewelry Brands in China.
(/) #1
(/) #6
(/) #2
(+5) #7
(/) #3
(+3) #8
(+1) #4
(-2) #9
(-1) #5
(-2) #10
© Digital Luxury Group, SA 33 Big Players Dominate.
•  Top 3 brands represent almost 90% of total interest
•  Rings is the most popular product category representing half of the market
#1
#2
#3
© Digital Luxury Group, SA 34 Breakdown by Search Intention.
•  Cartier, the higher-­‐‑end brand amongst the top three, generates more searches for ‘Price’ than other search intentions
Breakdown of Search Intentions for Top 3 Jewelry Brands in China
0.9%
1.1%
0.0%
6.3%
25.8%
35.9%
54.4%
8.7%
73.3%
52.7%
36.8%
Chow Tai Fook
Brand & Products
© Digital Luxury Group, SA Cartier
Material
Price
Swarovski
Points of Sales
All others
35 Top 3 Jewelry Collections.
#1
Cartier Love
#2
Cartier Tank
#3
The Tiffany Setting
•  Timeless signature design collections lead the way with Cartier and Tiffany’s
•  The Tiffany Se`ing is known in China by its nickname: ‘Tiffany 6 paws’ (‘六爪’)
•  Chow Tai Fook ranks #1 on a brand level but has no recognizable collection -­‐‑ An opportunity for the Chinese brand to grow in its home country?
© Digital Luxury Group, SA 36 China’s LOVE Affair with Cartier.
•  Cartier entered the mainland officially in 2001 •  LOVE collection launched in China in 2006 •  Cartier China’s 1st digital marketing campaign was for the LOVE collection with MSN China Luxury Channel:
-­‐‑ Aim was to generate increased brand awareness among 25-­‐‑35 yrs old white collar workers -­‐‑  Created a microsite, resulting in +1 million page views during campaign period
•  Cartier’s Tank jewelry collection benefited from name recognition linked to extensive communication campaigns by the Maison in 2012 for the 75th anniversary of the iconic Tank watch. The celebration was promoted heavily on social media, especially Sina Weibo, China’s No.1 social platform, on which Cartier now has 460K+ fans
© Digital Luxury Group, SA 37 Watches
© Digital Luxury Group, SA Photo Omega 38 Top 10 Watch Brands in China.
(/) #1
(/) #6
(+1) #2
(+1) #7
(-1) #3
(-1) #8
(/) #4
(/) #9
(/) #5
(+3) #10
© Digital Luxury Group, SA Evolution VS. Jan -­‐‑ Dec 2011 (WorldWatchReport™ 2012) 39 Elegance Dominates Top 5 Watch Models.
•  All top five watch models in China are very classic and elegant, far away from the world of sports and chronographs which are more popular with Western consumers Rank Evol. 2012 vs. 2011
Brand
Model
vs. Global rank
1
+3
Omega
De Ville
+12
2
-­‐‑1
Omega
Constellation
+9
3
-­‐‑
Cartier
Ballon Bleu
+28
4
+1
Chanel
J12
+5
5
-­‐‑3
Longines
Master
+34
© Digital Luxury Group, SA 40 Love for Ceramic.
•  Passion for ceramic is overwhelming in China (45.6% of total interest in materials) compared with any other country, such as: The United States (7.3%), Japan (16.7%), United Kingdom (8.5%) and Germany (12.9%) Breakdown of Watch Material Searches in China
© Digital Luxury Group, SA For more information please visit:
www.worldwatchreport.com
41 Unleashing China’s Purchasing Power.
“The need to unleash purchasing power promises future growth for the Chinese luxury watch market. Personally I think it will maintain its rapid growth rate, though it might drop to a stable rate compared to
previous years, just as China’s GDP needs to slow down. This is a result of the growing maturity of consumers, selection range expansion, dispersed purchase channels and development of higher demands.”
Yingze (William) Bai
Editor-­‐‑in-­‐‑Chief, Horlogerie Culture Center of China
© Digital Luxury Group, SA 42 Hospitality
© Digital Luxury Group, SA Photo: Twelve at Hengshan, A Luxury Collection Hotel Shanghai
Chinese Luxury Hospitality Focus.
Top 10 Hotels
#1
#2
#3
#4
#5
#6
#7
#8
#9
#10
Sheraton
Hilton
InterContinental
Shangri-­‐‑La
Westin
Four Seasons
Renaissance
Hya` Regency
Nikko
Ri|-­‐‑Carlton
China
Vs. Global
+1 -­‐1 +7 +12 -­‐2 -­‐2 +2 -­‐2 +18 -­‐3 China
+3.3% Sofitel
Langham
Wyndham
Fairmont
Banyan Tree
+22.8% Top 10 Fastest
Growing Hotels
+29.2% +30.9% +34.9% +42.0% Le Méridien
+45.3% Mandarin Oriental
+49.1% Grand Hya`
+49.3% Kempinski
+50.0% St. Regis
+56.4% Global
+76.2%
+62.7%
Shanghai Beijing Tianjin Shenzhen Hangzhou +35.4%
+20.5%
+1.9% +3.3%
Luxury Major Luxury Exclusive © Digital Luxury Group, SA Top Local Destinations
Upper Upscale Top International Destinations
Hong Kong Singapore Maldives Bangkok Guam Chinese Luxury Hospitality Focus.
•
Upscale and luxury have remained constant as a share of total hotels in China ( +8% on average progression 2003-­‐‑2010).
•
The number of domestic travelers is forecasted to increase by over +25% from the current level to reach 3.3 billion by 2015.
•
The World Tourism Organization projects that by 2020, 100 million Chinese tourists will make their way abroad annually. For more information on Luxury Hospitality, please view our reports:
© Digital Luxury Group, SA Source: Euromonitor International, Tourism Flows Outbound in China, March 2012.Mintel The rise of the BRICs-­‐‑
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© Digital Luxury Group, SA ABOUT.
The World Luxury Index™ is an international ranking and analysis of the most searched-­‐‑for brands and services within the luxury industry. Covering over 400 companies within six key segments (fashion, beauty, jewelry, cars, watches, and hospitality) in ten key luxury markets, the World Luxury Index™ provides insights on the unbiased search inputs coming from global luxury consumers in the world’s top search engines (Google, Bing, Baidu, Yandex). The result is a one-­‐‑of-­‐‑a-­‐‑kind benchmark of the luxury brands capturing the a`ention of luxury-­‐‑minded consumers around the world. Digital Luxury Group has a history in luxury industry market intelligence. Since 2004, the WorldWatchReport™ has provided the luxury watch industry with unmatched insights and garnered a`ention from the world’s leading publications, such as:
© Digital Luxury Group, SA 47 ABOUT.
www.digital-luxury.com
www.luxurysociety.com
© Digital Luxury Group, SA With offices in New York, Geneva, Shanghai, and Dubai, Digital Luxury Group (DLG) is the first international company dedicated exclusively to the design and implementation of digital communication strategies for luxury brands. Luxury Society is the world'ʹs most influential online community of top luxury executives. Based in Paris, with members in more than 150 countries, Luxury Society informs and connects CEOs, managers, journalists, consultants, designers and analysts from across the luxury industry. 48 CONTACT.
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