Michel Chevalier & Pierre Xiao Lu 
Luxury China 
Market Opportunities and Potential

A guide to reaching and profiting from China’s expanding luxury
consumer class

China’s growing consumer base and expanding economy means more
disposable income for more Chinese citizens. The Chinese market for
luxury goods is expected to expand from $2 billion this year to
nearly $12 billion by 2015. Today’s biggest global luxury goods
retailers expect China to make up a large and ever growing portion
of their customers, and those businesses are responding with new
stores and investments in China. Luxury China gives
readers-particularly professionals in advertising, marketing,
and the luxury brands industry-a deep look into the future of
the Chinese luxury goods market and shows them how to tap into
China’s tremendous market potential.

Table of Content

Foreword ix

Introduction xi

Chapter 1: Challenges and Market Size 1

Case study: Alfred Dunhill 19

Chapter 2: The Chinese Luxury Client 29

Case study: Shanghai Tang 45

Chapter 3: Chinese Consumer Attitudes Toward Luxury
53

Case study: Rolex in China 77

Chapter 4: How to Distribute in China 85

Case study: Shiatzy Chen 99

Chapter 5: Retailing and Licensing in China 105

Case study: Louis Vuitton in China 125

Chapter 6: Communication and Advertising 137

Case study: The War of the Spirits 165

Chapter 7: Brand Protection and Counterfeit Activities
175

Case study: Liuli Gongfang: Breaking into Luxury by way of Glass
189

Appendices 195

Bibliography 241

Index 245

About the author

Michel Chevalier, a graduate of HEC in France, holds an MBA
and a Doctorate from Harvard Business School. He started his career
at the Boston Consulting Group, then worked for S.C. Johnson and
moved into the luxury field. He was successively general manager of
Paco Rabanne Perfumes, chairman of Paco Rabanne Fashion, executive
vice president of Bluebell Asia Ltd. in Hong Kong and in Tokyo, as
well as chairman of the Revillon fashion group in Paris. He is now
a consultant for EIM in Paris and office manager of EIM Shanghai.
Michel teaches at University Paris Dauphine and Institut
Supérieur du Luxe in Paris specializing in luxury for their
MBA course. He has also published numerous articles in
journals on retailing and coauthored the books, Pro Logo and
Luxury Brand Management, with Gérald Mazzalovo.

Pierre Xiao Lu is an Assistant Professor of Marketing at
Fudan University’s School of Management in Shanghai and the
Visiting Professor of Marketing at ESSEC Paris-Singapore. He also
consults for many multinational luxury firms, such as Lacoste S.A.,
LVMH, PPR-Gucci and Master Card. Professor Lu specializes in luxury
consumer behavior in China and luxury brand management in Asia.
After working for several years at ESSEC’s luxury industry
research center, he received his Ph.D. from ESSEC Business School
Paris. His articles on the luxury industry and Chinese luxury
consumers have been published in professional and academic
journals, such as AMA, AFM, Comité
Colbert, Harvard Business Review China and Financial
Times China. He is also the author of Elite China and
translated Luxury Brand Management into Chinese.