Brand Management In The Luxury Fashion Market In China

China's luxury market has grown so rapidly that it is forecasted to be the world's largest luxury market in the near future. One driver in this industry is the apparel and accessories sector. Due to its high growth potential many foreign luxury companies have already entered China's fashion luxury market while some are still thinking about it. Compared to Western economies China's luxury market is characterized by high competition and an immature nature of demand with low brand awareness and brand loyalty. Therefore, luxury companies in China need to understand the market and apply appropriate strategies in order to win over China's luxury consumers.This paper analyses the luxury fashion market in China. In particular, it identifies the key segments and investigates consumer behaviour. Segmentation plays an important role in targeting the 'right' consumers and provides the foundation for marketing strategies which enhance brand awareness in such an immature market. The findings on China's fashion luxury market are combined with a theoretical framework on brand management in order to develop management recommendations with respect to a suitable marketing program in China. A small case study is used to illustrate how Louis Vuitton has entered the luxury fashion market and has become one of the most successful luxury firms in China.