Luxury Product Design for the Chinese Market

A thesis submitted to the Division of Research and Advanced Studies of the University of Cincinnati in partial fulfillment of the requirements for the degree of

Master of Design

in the School of Design of the College of Design, Architecture, Art and Planning 2012

Gaoyan Shi MFA Zhejiang University of Technology, Zhejiang, P.R. China, 2009

Thesis Committee: Craig M. Vogel, Chair Peter A. Chamberlain Phyllis Borcherding

Abstract

China has become the world's largest consumer of luxury goods. The noticeable market performance has led to many luxury companies establishing their presence in China and setting expectations for strong growth. In such a competitive environment, the companies that can build their reputation and compete against others in the Chinese market will be those who clearly understand Chinese culture.

Among the numerous factors that connect to the performance of business, design is playing an important part that cannot be ignored. However, although there are indeed much research of the Chinese luxury market, most of them are from the economic angle, seldom mention the design aspect. This project studies the design strategy of luxury products for Chinese market. It is based on the research on the current overall market situation of luxury product in China and application of Chinese culture in product design, in order to explore the appropriate design principles.

One popular and effective way to attract Chinese consumers is to design culture- relative goods, nevertheless, because Chinese culture is complex and subtle,

ii foreign companies inevitably have some misunderstandings and some of their corresponding designs become confusing and undesirable. The phenomena and reasons of cultural misconception are studied in the thesis. Moreover, how to appropriately choose and utilize Chinese elements in luxury goods design is demonstrated here in detail with typical examples, since applying Chinese elements is the favorite and most frequently-used means in Chinese culture- relative design.

The objective of this project is to help luxury companies understand the Chinese market better and design suitable luxury products. Both Chinese and international companies can get useful information here for the future product development.

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Acknowledgements

I would like to express my deep and sincere gratitude to my research advisor,

Professor Mike Zender for his guidance and support during my graduate study thus far. His professional knowledge and comprehensive thinking have been of great value for me. I am also deeply grateful to Professor Craig Vogel. His understanding, encouraging and guidance have provided a good basis for the present thesis work. Also, my gratitude is expressed to Professor Peter

Chamberlain and Phyllis Borcherding for their generous help on guiding my research direction. I would like to thank Professor Brigid O’Kane, J. Chewning and

Steven Doehler for their helpful suggestions.

In addition, I wish to thank all my friends and classmates for their cooperation and help. I really enjoyed the time studying and working in DAAP.

Finally, I am forever thankful for the support of my family. Their love, patience, encouragement, and support allowed me to pursue and ultimately complete this

Masters degree. Thank you, mom, dad, Xia and Aaron.

Table of Contents

Chapter 1. Introduction ...... 1 Chapter 2. Luxury product and luxury brands ...... 3 2.1 The definition and range of luxury product ...... 3 2.2 The developmental status quo of luxury brands ...... 7 Chapter 3. Current Chinese luxury market ...... 11 3.1 Current market performance ...... 11 3.2 The potential demand for luxury product ...... 13 3.3 The existing problems in the market ...... 13 3.3.1 Differing from western market and not easy to be understood...... 13 3.3.2 Lacking of native luxury brands...... 14 3.3.3 Chinese companies adopting a follower strategy ...... 16 3.3.4 A considerable number of irrational consumers ...... 16 3.3.5 Counterfeit goods existing in the market ...... 17 3.4 Market segments and target consumer characteristics ...... 17 Chapter 4. Cultural misunderstanding in luxury product design ...... 21 4.1 The phenomena of cultural misunderstanding in luxury goods design ...... 23 4.1.1 Using undesirable colors ...... 23 4.1.2 Using undesirable shapes ...... 25 4.1.3 Lacking of important functions ...... 27 4.1.4 Providing redundant functions ...... 28 4.1.5 Using inaccurate Chinese elements ...... 30 4.2 The reasons for misconception ...... 31 4.2.1 Misconception in the meaning of Chinese elements ...... 31 4.2.2 Misconception in Chinese lifestyle ...... 32 4.2.3 Misconception in Chinese aesthetics ...... 33

4.2.4 Mold into a rigidly conventional pattern ...... 34 4.3 Conclusions ...... 35 Chapter 5. Application of Chinese Elements in Luxury Goods Design ...... 36 5.1 The range and content of Chinese elements ...... 36 5.2 The essence of Chinese culture ...... 40 5.3 The importance of applying Chinese elements in luxury goods design ...... 41 5.4 The application of Chinese elements in current luxury product design ...... 41 5.4.1 Typical example one ...... 41 5.4.2 Typical example two ...... 42 5.4.3 Typical example three ...... 43 5.5 Current Problems in applying Chinese culture in luxury goods ...... 44 5.5.1 Underutilization of most of the resources ...... 44 5.5.2 Monotonous application ...... 45 5.5.3 Misunderstanding of the meaning ...... 45 5.6 How to express Chinese elements in luxury product design ...... 45 5.6.1 Direct Expression ...... 45 5.6.2 Concrete Expression ...... 46 5.6.3 Simplified Expression ...... 48 5.6.4 Abstract Expression ...... 49 5.6.5 Imagery Expression ...... 50 5.6.6 Duplicated Expression ...... 52 5.6.7 Integrated Expression ...... 53 5.6.8 Other suggestions ...... 54 5.7 Other design principles related to Chinese culture ...... 54 5.8 Conclusion ...... 56 Chapter 6. Suggestions for future development ...... 58 6.1 Suggestions for International companies to promote the Chinese market . 58 6.1.1 Do some investigations before design ...... 58 6.1.2 Ask opinions from Chinese designers, researchers or anthropologists. 59 6.1.3 Hire Chinese designers and researchers ...... 60

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6.2 Suggestions for Chinese companies that want to establish their own luxury brands ...... 60 6.2.1 Learn from those famous luxury brands while build own styles ...... 61 6.2.3 Excavate the connotation of culture and promote cultural grade ...... 62 6.2.4 Repackage company image ...... 63 6.2.5 Kindle the patriotic emotion of consumers ...... 63 Chapter 7: Conclusion ...... 65 BIBLIOGRAPHY ...... 67

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List of Figures

Figure 1: The six facets of luxury (Dubois & Czellar, 2001) ...... 4

Figure 2: Six aspects of luxury brand (Beverland, 2004) ...... 5

Figure 3: Research area of the thesis ...... 7

Figure 4: 2009 Luxury goods market size (Chinese market proportion) ...... 12 Figure 5: Market size of luxury apparel & accessories in China, 2004-2009 (Unit:

US$100M) ...... 12

Figure 6: Age of affluent Chinese consumers (Hedrick-Wong, 2007) ...... 20

Figure 7: The bracelet ...... 24

Figure 8: The purse ...... 25

Figure 9: The doll bag ...... 26

Figure 10: The necklace ...... 27

Figure 11: The chopsticks set ...... 29

Figure 12: The take away box ...... 30

Figure 13: Samples of totem ...... 37

Figure 14: The main religions in China: Buddhism, Taoism and Christianity ...... 37

Figure 15: The philosophies influencing Chinese people significantly ...... 38

Figure 16: Samples of propitious omens ...... 38

Figure 17: Samples of signature animals and plants ...... 39

Figure 18: Samples of cultural heritages ...... 39

Figure 19: Samples of Chinese characters ...... 40

Figure 20: Example one: dress design ...... 42

Figure 21: Example two: earring design ...... 43

Figure 22: Example three: watch design ...... 44

Figure 23: Example of direct expression ...... 46

Figure 24: Example of concrete expression...... 47

Figure 25: Example of simplified expression ...... 49

Figure 26: Example of abstract expression ...... 50

Figure 27: Example of duplicated expression ...... 53

Figure 28: Chinese elements with corresponding expressions ...... 57

Chapter 1. Introduction

Currently, China is the largest consumer of luxury goods worldwide, and its appetite for the good life continues to increase in step with the rapidly growing economy. Because of the noticeable market performance, many luxury brands aim at China as one of their major target consumers. Accordingly, the market competition becomes more and more severe. These luxury companies are competing with each other by offer specifically “designed for China” products for

Chinese consumers. Some of these luxury goods are well designed and the sell are soaring in the specific market. However, due to the cultural differences, foreign designers may not understand what Chinese consumers want and what they need. Facts proved that this kind of design is not popular in the Chinese market and sometimes even seems to be strange in the sight of Chinese consumers.

In addition, almost all the luxury brands are imported from US or Europe. The fact is China does have the manufacture ability, therefore, if design can catch up with advance line, it is time for China to build its own luxury brands. Chinese designers have the advantages of understanding their own culture and local consumers

1 thoroughly and completely. If they make effort in this area, it is not impossible to establish Chinese luxury brands.

This project, a study of cultural misunderstanding in luxury product design for

Chinese Market, is partially funded by University of Cincinnati. It adopts multiple practicable methods—including information collection, fieldwork and in-depth interviews, to conduct the research. Part of the study is done in China.

The stakeholders of the project include current luxury brands who aim China as one of their important markets, Chinese local companies who want to establish their own luxury brands, Chinese designers, foreign designers, luxury goods consumers and advertising agents. The thesis is written for multiple audiences.

The Chapter Four is specifically for foreign designers and foreign companies.

Chinese designers and Chinese companies may get useful information especially in Chapter Five. The Chapter Six offers suggestions for both of them: foreign companies that intend to promote the Chinese market and Chinese companies that want to establish their own brands.

Chapter 2. Luxury product and luxury brands

This chapter defines and narrows down the research range of the whole thesis.

2.1 The definition and range of luxury product

Luxury comes from the Latin word « luxus » and means “sumptuous, ostentation, riche” (Larousse, 2004). In economics, a luxury good is a good for which demand increases more than proportionally as income rises, in contrast to a "necessity good", for which demand is not related to income (Luxury good, 2009). Luxury goods are said to have high-income elasticity of demand: as people become wealthier, they will buy more and more of the luxury goods. This also means, however, that should there be a decline in income its demand will drop.

The luxury goods industry was defined as “a collective term for companies selling- besides high-quality products- principally status, emotional benefits, prestige, and exclusivity as well as the dream of separation from the ordinary may be customary since the mid 1980’s” (Königs & Schiereck, 2006). Since then, this theoretical phrase might have outlined the conception and perception of this industry by customers.

Beverland argues that most definitions fail to differentiate between a luxury product/brand and the wider concept of luxury (Beverland, 2004). Dubois and

Czellar identified six facets of luxury which are listed below:

Exceptional ingredients, 1. Excellent quality components delicacy and expertise, craftsmanship Expensive, elite and premium 2. Very high price pricing

Restricted distribution, limited 3. Scarcity and uniqueness number, tailor-made

4. Aesthetics and poly- Piece of art, beauty, dream sensuality

5. Ancestral heritage and Long history, tradition, pass-on to personal history generations

6. Superfluousness Uselessness, non-functional

Figure 1: The six facets of luxury (Dubois & Czellar, 2001)

Similarly, Beverland provides a model of a luxury branding which identifies and unites six component dimensions. The model is shown in Figure 2.2.

Marketing Culture

Endorsements

Value Driven Luxury Brand Emergence

Product History Integrity

Figure 2: Six aspects of luxury brand (Beverland, 2004)

The six components of Beverland’s model drawn from previous studies, particularly with respect to brand heritage (history – culture); product quality, credibility and excellence (product integrity); personality and consumer group support (endorsements); and brand image investments (marketing).

Meanwhile, Nueno and Quelch state that a luxury product is a work of art designed for an exclusive market. The main characteristics of a luxury brand can be defined as: “1.The functionality in relation to price is low, while the intangibility and value perception in relation to price is high. 2. Consistent quality, identifiable and classic design in all the products. 3. Historical heritage of craftsmanship. 4.

Production is limited in order to obtain exclusivity and high price. 5. A connection

5 which creates a combination of emotional association and product quality. 6.

Global awareness and reputation (Nueno & Quelch, 1998).

Jackson and Haird proposed that luxury brands have a heightened status that affords an opportunity for their owners to charge premium prices. These brands possess a desirability that extends beyond their function and which provide the user with a perceived status through ownership (Jackson & Haird, 2002).

Normally, one of the major attributes of goods that are considered to be in the luxury category is the perception that they are scarce. But companies of luxury product are all expecting to broaden their market. Dubois observes that marketing luxury goods is a paradox whereby if the brand is over-diffused it loses its luxury character (Dubois & Paternault, 1995) . Catry makes a similar observation and argues that in order for the producers to expand the franchise into new market segments, they must maintain at least the illusion that the goods are scarce (Catry, 2003). Anyway, classic luxury brands are trying to expand their market and meanwhile, secondary brands are struggling to be added into the luxury catalog, that situation would never change.

The ranges of luxury goods differ from time to time and also, from country to country. For example, a Honda sedan and a 2000 sq. house can be considered as luxury properties for a Chinese living in a small city; but that may be seen as daily

6 life necessities for an American living in Ohio. In order to avoid confusion, we choose the overlap part as the universal range of luxury; in addition, narrow down the research area to small personal stuffs since they are closely connecting with industrial design.

Figure 3: Research area of the thesis

2.2 The developmental status quo of luxury brands

Global brand strategy and financial consultancy firm Millward Brown Optimor ranked the world’s most powerful luxury brands from an economic angle, taking into consideration both their current value and demand which will lead to future profit. Here's who made the cut (via Fashionista.com):

1. Louis Vuitton – Taking the No. 1 spot again, Vuitton’s value rose 2% to $19.78 billion. The company focused on heritage travel pieces last year, appealing to those already committed to the brand.

2. Hermès – Hermès stayed at No. 2 from last year and rose 8% in 2009 to $8.46 billion. It's 71% family-owned, which means there is strong control over the brand and it’s only sold in the company’s own stores.

3. Gucci – Rounding out the top three and keeping its spot from last year, Gucci’s value rose to $7.59 billion, a gain of 2%. In a bid to get a hold of the secondhand market, it entered a partnership with Christie’s to have the auction house appraise vintage products.

4. Chanel – Chanel also kept its spot from last year, despite an 11% drop in value to $5.55 billion. Though people still bought bags and fragrances, the loss could be attributed to a drop in sales of ready-to-wear items.

5. Hennessy – Hennessy rose one spot on the list, losing only 1% of value and coming in at $5.37 billion. The cognac company is popular in countries such as

China.

6. Rolex – As people bought less expensive jewelry, the luxury watch company suffered last year. It only dropped one spot on the list, but is now valued at $4.74 billion, a 14% loss.

7. Moët & Chandon – Moët & Chandon went down 12% in value to $4.28 billion, but rose a spot on the list and is still the best-selling champagne brand.

8. Cartier – Another jewelry retailer to suffer, Cartier dropped a list spot and 19% of its value. Now estimated at $3.96 billion, the company lost money both in its own stores and at third-party shops.

9. Fendi – Fendi lost 8% of value to $3.20 billion, but kept its ninth-ranked position. The company looked to the worldwide market to increase sales. In the

U.S., Fendi is known for its purses, but the ready-to-wear line is superpopular in

Asia.

10. Tiffany and Co. – The only new entry on the list, Tiffany and Co. managed to rise to $2.38 billion, a 6% gain. It looked more toward the world market, but the company’s success is also down to not offering discount prices.

The success of these brands lies in many factors, yet in this thesis we will focus on those connecting to product design. Bernard Arnault, CEO of LVMH offered his

9 own pronouncements on the subject in Harvard Business Review in 2001. The best luxury brands, or star brands, are able to defy strategic management logic and be simultaneously fast growing and profitable. This paradox can be achieved through another paradox, building brands that are, at the same time, timeless and modern. Creativity and innovation is vital for achieving this (Wetlaufer,

2001). As Arnault argues, companies cannot charge premium prices for giving people what they expect. Arnault discloses some of his subtle methods of

“managing creativity for the sake of growth and profits” (Wetlaufer, 2001). These include hiring managers with who are respectful and tolerant towards to freewheeling and chaotic creative processes, learning to spot and employ creative talent with a commercial instinct, maintaining a decentralized structure organized around independent brands and highly autonomous creative directors, directing designers to sources of inspiration with commercial potential, and channeling creativity into the market in smart ways. The latter involves using the most edgy and experimental creative ideas in fashion shows and advertisement to create buzz, adapting some of these ideas slightly for limited, upscale lines, and retaining only few radical ideas in the broader, more classical lines. This minimizes the risk, while leveraging creative genius. It also leaves space for the timelessness, the star brands need to project (Csaba, 2008).

Chapter 3. Current Chinese luxury market

3.1 Current market performance

In recent years, the performance of Chinese market is noticeable. According to statistics, China is the largest consumer of luxury goods worldwide now, and its appetite for the good life continues to increase in step with the rapidly growing economy. Today’s China has an estimated 18 thousand billionaires, 440 thousand multimillionaires, and a fast rising middle class of around 250 million who have high purchasing power and are eager to spend in luxury goods. These wealthy

Chinese spend USD 8 billion on luxury goods in 2007 (Morisset & Lee, 2008). In

2009, Chinese market size of luxuries reached US$9.4 billion with the global market share approximating 27.5%. Among the varieties of luxuries, Chinese consumers gave priority to luxury apparel and accessories (mainly including clothes, shoes, bags, watches, and glasses) which held roughly 70% of the entire luxury consumption and had the market size of US$6.72 billion in 2009(see Figure

3.1 ).

Figure 4: 2009 Luxury goods market size (Chinese market proportion)

Figure 5: Market size of luxury apparel & accessories in China, 2004-2009

(Unit: US$100M)

3.2 The potential demand for luxury product

Franck Dossin, analyst with the Goldman Sachs Group Inc claims that China will be the world's fastest growing luxury market over the coming 10 years and will become the world second largest luxury market by that time (Market for luxury brands booms in Shanghai, 2004). 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

(Chevalier & Lu, 2009). Estimates have China consuming 29% of the world’s luxury goods by 2015 (Morisset & Lee, 2008). The major contributors are likely to be the automobile sector, and fashion clothing and accessories segments.

3.3 The existing problems in the market

3.3.1 Differing from western market and not easy to be understood

The market size of the Chinese luxury market is very large. However, there is a real need to understand market prospects as well as complexity of the Chinese market (Yong & Baocheng, 2003). An analyst from le Monde (2003) underlined

13 that entrepreneurs have to stop dreaming at the Chinese Eldorado, China is a complex market which demands a lot of energy as the Chinese are loyal consumers but hard to satisfy (Bouxirot & Shin, 2005).

At the first glance, the Chinese market may seem to be similar as the western market, but if looking it closer, you will find the market contains many unique features which should not be ignored and the marketing strategy working in

America and Europe may fail in China. While some products will succeed in these markets in spite of, or in many cases because of, their association with Western modernity, many more would succeed only if they made accommodations to the behaviors, beliefs and aspirations of local cultures (Wentz, 2003). Even in the interior of China, there are also market segments. According to Gerald Levin former CEO of Time Warner, there are about 30 “China markets” created by diversity of geography, climate, religion, economic status, language and other cultural influences (Kumar, 2003) . Western companies that want to win the

Chinese market should learn new rules, understand local practices, and work with incompatible values and beliefs.

3.3.2 Lacking of native luxury brands

When it comes to luxury goods, usually the first thing that goes through people’s mind is some brands from western countries, but hardly any Chinese local brand.

However, if cast a look back at the history, we will find that Chinese actually had created a variety of amazing luxuries, such as porcelain ware, jade carving, silk and satin, hardwood furniture of the Ming and Qing Dynasties. There were

Chinese luxury goods wining a worldwide reputation in almost every dynasty in history.

Early as hundreds of years ago, Chinese craftsmen already had the skills to create

Chinaware artworks which were “white like jade, bright as a mirror, thin as paper, sound like a chime”, In the modern society, many top luxury brands, such as

Prada and Armani, put their manufacture centers in China and hire Chinese workers to produce elaborate and competitive goods. So what China lacks is not the manufacture ability. Then why no figure of Chinese goods appears on today’s stage of luxuries? One of the major reasons is that those traditional products may be out of the modern aesthetic and functional requirements by the insensitivity of the market. Actually, the high-end domestic brands that have deep roots in

China’s heritage and tradition such as tea, jade, ginseng, and silk, actually have much potential to grow into luxury brands because of their unique features.

Therefore, if the design can catch up with people’s expectation, the situation may change accordingly.

3.3.3 Chinese companies adopting a follower strategy

Currently, the situation surrounding Chinese design management is by no means positive, even though there are some Chinese companies doing well in it. Many of them still adopt a follower strategy, which means they tend to imitate foreign product designs while lack of original innovation. The market research and product development study are generally not sufficient and decision making depends much on instinct. Generally speaking, many Chinese companies are accustomed to learning or even copying famous international brands while devoid of courage to create their own unique styles.

3.3.4 A considerable number of irrational consumers

It may be so called good news to luxury companies, but also can have negative effect in the long run. These irrational consumers are relatively young in age and with immature consumption behavior --- They buy luxury goods on the spur of the moment without careful consideration. These consumers are demonstrating a swelling enthusiasm for luxury because their desire to “show off” or just follow the lead of celebrities. What is worse, to some people, luxury is nothing about style or taste but just a way to flaunt their wealth.

The consumption behavior of these kinds of luxury consumers is hard to predict.

So it is not easy to satisfy them or understand their tastes.

3.3.5 Counterfeit goods existing in the market

While the Chinese luxury market is expanding rapidly, an equally fast-growing segment of local industry has been counterfeiting. Some “luxury goods” in the

Chinese market seem to be very similar while having slight differences in the logos, such as “Channel” vs. Chanel, “Louis Uuitton” vs. Louis Vuitton. There are also faked luxury goods which are exactly the same as those genuine ones.

Chinese government are combating infringements and counterfeiting with severity to protect intellectual property rights but sadly, still some manufacturers keep producing counterfeit goods secretly to pursue profit.

3.4 Market segments and target consumer characteristics

According to statistics, today’s China has an estimated 18 thousand billionaires,

440 thousand multimillionaires, and a fast rising middle class of around 250 million who have high purchasing power and are eager to spend in luxury goods.

These wealthy Chinese spend USD 8 billion on luxury goods in 2007(Morisset &

Lee, 2008). It is clear that with the great potential population, China has become a promising land for luxury brands (Chandler, Wang, & Zhang, 2006).

China’s well-off consumers can be roughly grouped into two segments. Some estimate there are about 250,000 “Nouveau Riche” in China, and the number is steadily growing. They include entrepreneurs, business people, celebrities, and government officials of various ranks, who have benefited the most from the opportunities created by the reforms and privatization. They concentrate in

China’s coastal cities and other major metropolitan areas. These consumers maintain a very active lifestyle, dining in exclusive clubs and travel overseas. Their risk aversion is low, as being the innovators among the Chinese, they are eager to acquire imported prestige products and show off their status. These are the people that really have made it, and they show, through conspicuous consumption, that they have deserved this personal enjoyment (Cui, 1999).

The second group of interest is the Yuppies group, composed of people in ages between 26 and 45, with at least some collage education or technical training, residing in major metropolitan areas. These Chinese, approximately 60 million of them, work in China’s new enterprises, joint ventures and foreign companies.

These younger and better-educated consumers have separated themselves from the traditions of the past, and in many cases from the government as their employer. They are experimenting with new lifestyles and are more responsive to new ideas and products from the West. They have begun to develop some discriminating tastes and become the early adopters among the Chinese

18 consumers. Many of them place premium value on quality and convenience. To prove and further secure their newly obtained social status and prestige, the young elite has taken the construction of a different lifestyle seriously. They want to lead the trend of contemporary consumption in Chinese cities. Urban youth may be less well of than this group, but they are equally eager to embrace a new way of personal life. This group, the “Yuppies”, together with the “Nouveau Riche” is the prime consumers of imported goods, particularly luxury products.

China’s elite cannot simply be defined by demographic and economic terms.

They must also be classified by the generation they belong to and their path to wealth. From the demographic to point of view, as illustrated in Figure 3.3, the overwhelming majority or over 90% of the affluent urban Chinese are below the age of 40. Some 62% of them are between 25 and 34 years old, and another 23% are between 35 and 34 years old.

40.00% 35.50% 35.00%

30.00% 26.00% 25.00% 22.60%

20.00%

15.00% 9.90% 10.00% 6.60% 5.00%

0.00% 18-24 25-29 30-34 35-39 40-45

Figure 6: Age of affluent Chinese consumers (Hedrick-Wong, 2007)

Chapter 4. Cultural misunderstanding in luxury product

design

Because Chinese culture is complex and subtle, there are inevitably some misconceptions. Some of the luxury product designs that adopt Chinese culture become confusing and even ridiculous. This chapter intends to discuss the current phenomena of cultural misunderstanding in luxury goods design by providing some typical cases, analyze the reasons of the misconception from different aspects, and then raise suggestions about how to avoid these kinds of design mistakes. The objective of the study is to help foreign companies understand the Chinese market better and produce appropriate “for China” luxury goods.

Most of the examples discussed later come from four major forums where many

Chinese luxury consumers go to. They are listed below:

The fashion forum of “Chinese in North America”: http://www.huaren.us/index71.asp?boardid=225

The fashion forum of “Tianya”: http://fashion.tianya.cn/

The “Show my goods” forum of “City of Luxury”: http://bbs.yoka.com/forum-95-

1.html

The “Fashion & Luxury” forum of “Only Lady”: http://luxury.onlylady.com/

For example, in this post “Chanel‘s collection for Shanghai World Expo” (Fashion and Life, 2010), there were 8303 clicks and 115 comments showing different opinions towards Chanel’s collection for Shanghai World Expo. I gathered this kind of information from the four websites and organized them. This is how the comments for the luxury goods discussed below come from.

4.1 The phenomena of cultural misunderstanding in luxury goods design

4.1.1 Using undesirable colors

Colors are non-verbal communication tools which influence emotions, actions and how people respond to things and ideas. Colors have many different meanings to different people and different cultures. Due to the power of colors, designers should be careful not to adopt the wrong colors or color combinations in their design.

As is well known, in China, certain colors are very popular and mean much, such as red and gold; while some colors have negative meanings like white and black in certain environments. Therefore, colors should be suitable for their context. For instance, it is considered insulting if someone is wearing very bright colors, such as red and orange in a funeral; likewise, black dress is a bad idea for attending a wedding. There is also an etiquette error called “a reversal of the order of host and guest” which should be avoided: something like a red bridesmaid’s dress, since red is a signature color of the bride.

Another example, this bracelet design adopted the green color in order to express its “ancient and historical” feeling. It can be understood but not be

23 welcomed. In China, “classic” and “ancient” are different in symbolic meanings.

Consumers in the fashion world often show love for the former but seldom accept the latter.

Figure 7: The bracelet

Below is a similar one: due to the outside green color, this purse can attract very few consumers, because this color combination could arouse special associations: during the so called “the Great Proletarian Cultural Revolution（1966-1976）”, people used this color so frequently that now it has become kind of rustic. Also, it would be hard to use with modern clothes.

Figure 8: The purse

4.1.2 Using undesirable shapes

The pictographic nature of Chinese characters can reflect that the Chinese are accustomed to paying attention to the shapes of objects. Some products that have the appearance resembling other objects can easily arouse suspicion.

Take the cute doll bag for example: the shape is lovable until you connect it to those sacrifices offered to gods or ancestors. When opening the bag, you have to

“open the baby girl”, literally. This action reinforces the “sacrifices” imagery. On the other hand, it is not quite like a Chinese doll but more like a Russian doll.

Figure 9: The doll bag

The necklace below is like a straw rope because of the shape and colors, which, is not attractive at all. From certain distance, it is even hard to tell that from a straw rope. This product goes too far from those normal luxury necklaces and loses its identity.

Figure 10: The necklace

4.1.3 Lacking of important functions

Normally, every luxury product has its own practical function, which usually becomes the main reason that people purchase it. However, some designs have unconsciously ignored the needs of certain important functions. As a result, consumers may be attracted by the appearance in the first glance but will not buy it due to the practical issue.

Take a man’s coat as an example: pockets in appropriate places are necessary since men may use them to carry purse, cards, handkerchief, keys and so on. In

China, a considerable number of men do not take their briefcase along often, so they need pockets. Also, pockets should be in appropriate sizes for the different needs. If a handsome coat is without any pockets, it will not attract many people.

4.1.4 Providing redundant functions

On the other hand, if a product offers redundant functions, the most possible result is they cannot account for bonus points but make consumers doubt them increasing the price. If the main function of a product is considered to be non- mainstream, consumers may not have the intention to buy it, especially a luxury product which will cost a lot.

For example, LV has a pair of chopsticks which is sold for $450. The Louis Vuitton

VIP Chopsticks Set includes two pairs of finely carved, hand polished rosewood chopsticks sporting the LV monogram. It is very interesting but still there is a question about how many target consumers would like to purchase it. In China, table culture is important, especially to business people who often eat at restaurants with customers. If one separates himself or herself from others by using a different pair of chopsticks, it would be against the rule of equality, unless the user is the only boss at the table.

Figure 11: The chopsticks set

Another example, the take away box is totally a redundant function. Luxury goods consumers usually eat either at home or in restaurants; if they order take away food, normally it is delivered by restaurant assistants, since through decades of mature operation, this service is efficient, satisfying and even free of charge. So why bother with this? Actually no one in China would put take away food in such a box.

Figure 12: The take away box

4.1.5 Using inaccurate Chinese elements

Using Chinese elements in an appropriate way can be considered as a sensible means of product design specifically for China. On the contrary, a design that has misunderstood and adopted certain Chinese elements would end up as a joke to those who know the correct meanings of them.

The typical inaccurate usage includes using wrongly-written Chinese characters, similar but wrong symbols, totems with ambiguity, elements with opposite meanings and the wrong attitude in expressing certain symbols.

For example, if a design is based on the image of “dragon”, usually Chinese would like to see it as a respected creature. In Chinese culture, the dragon is the symbol of power, influence, wisdom, propitious omen and national harmony, not only a large legendary animal. Because of the different meanings of dragon in

Western countries and China, some scholars have suggested using another name, for example, “Long” for the Chinese dragon to distinguish it from the overall dragon catalog. Anyway, a design that involves Chinese dragons should be extremely careful not to be insulting to Chinese. It is OK to design a baby dragon cute and lovely, but it is not encouraged to make fun of it, not to mention other adult Chinese dragons.

Because at present, using Chinese elements is the most popular way for luxury companies to design “Chinese feeling” goods, it worth of studying further. How to apply Chinese elements appropriately and successfully in luxury product will be discussed thoroughly in the next chapter.

4.2 The reasons for misconception

4.2.1 Misconception in the meaning of Chinese elements

China has a civilization history longer than 5000 years. As a result, Chinese elements contain a very large range, including: totem culture, religious belief,

31 philosophical idea, propitious omen, signature animal and plant, Chinese character and so on. Each category contains numerous items too.

Due to the reason that many Chinese elements have subtle meanings that cannot be easily explained by words; foreigners might not quite understand them or even have misunderstandings. What makes it confusing is that sometimes one single element can be expressed totally differently in different environments. It is necessary to study carefully about the context before making the conclusion.

4.2.2 Misconception in Chinese lifestyle

China develops a culture that is complex and multidimensional. Sometimes racial difference is not a problem, but the root of lifestyle difference is. Chinese have their unique lifestyle that differs from foreigners, in terms of daily lifestyles with such aspects as religion, music, habits, hobbies, and foods. Also, their attitudes are different, their outlooks are different, and their very level of civility is so far removed from each other that its note even funny.

Foreign designers have a different appreciation for the market and for what they should offer. A designer should first taste the culture and experience the daily life before inventing a new luxury product with an unusual function in the target

32 market. Otherwise, a “necessity” in Western countries may be a useless object in

Asia.

4.2.3 Misconception in Chinese aesthetics

Cultural differences lead to different nations having different perceptions of beauty.

China has a very long history; Chinese aesthetics is constantly and gradually evolving during this process. Early in the tradition, art was integrally related with metaphysics, social and political philosophy, and ethics. At this stage in the tradition, aesthetics had primacy over rational discourse (Hall & Ames, 1987).

According to (Li, 1994), the main development of traditional Chinese aesthetics, like other branches of Chinese philosophy, was a rationalism that freed itself of primitive magic and religion and laid the foundations of cultural and psychological structure for the Han people.

Chinese aesthetics is concerned with self-conscious, educated decorum, to be identified with moral and social order as well. A premium in traditional Chinese philosophy is placed on social harmony, and art is meant to reflect that.

It is the most difficult thing for foreigners to understand about Chinese culture.

To learn about that, one needs to know the spirit of Chinese philosophy and interpret the meaning of “balance” since it is the essence of Chinese aesthetics.

But what the true point of “balance” is again differs from race to race.

4.2.4 Mold into a rigidly conventional pattern

Many people learn about China only from newspapers, TV and movies. Some of them may have never been to China. As a result, their understanding of China may be “out of date” because of the rapid development in China since 1990s.

A considerable number of foreign designers are interested in applying Chinese culture in their design. However, Chinese elements are not only red color and dragons; the application of Chinese culture is not just using the shapes of some symbols; and “ancient” is not a good key word to describe China. A large number of consumers are tired of seeing so many repeated designs. It is suggested to understand Chinese culture first and then try to think out of the box rather than mold into a rigidly conventional pattern.

4.3 Conclusions

The application of Chinese culture into product design is a good way of responding to the Chinese luxury market. But it should be based on the correct understanding of Chinese culture and consumers. Otherwise a design can hardly be successful. There are ways to avoid cultural misconceptions, and we expert foreign companies produce more and more well-designed luxury goods for the

Chinese market.

Chapter 5. Application of Chinese Elements in Luxury

Goods Design

Because designs adopting Chinese culture appropriately can attract Chinese consumers efficiently, application of Chinese elements in the luxury product design may be one of the most efficient ways to win business in the Chinese market. This chapter intends to discuss the range and content of Chinese elements, the utilization of Chinese elements in current luxury product design; and then analyze the current problems in applying Chinese elements. The chapter ends up with several different ways for future luxury goods design and suggestions for companies who want to understand the Chinese market better.

5.1 The range and content of Chinese elements

Chinese elements contain a very large range, including major categories as below:

Totem culture --- a symbol of the ancestors or relatives of a group, the original function of which is to distinguish one group from another, is the earliest phenomenon of cultural history.

Figure 13: Samples of totem

Religious belief --- The main religions in China are Buddhism, Taoism, and

Christianity. In China, all regular religious activities - such as worshipping Buddha, chanting scriptures, praying, expounding on scriptures, holding Mass, baptism, initiation into monk- or nun-hood, Ramadan and observance of religious festivals

- are all managed by the religious personnel and adherents themselves.

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Figure 14: The main religions in China: Buddhism, Taoism and Christianity

Philosophical idea --- The philosophy influencing Chinese people deeply is

Confucianism from the Chinese sage Confucius. It concerns the fields of ethics and politics, emphasizing personal and governmental morality, correctness of social relationships, justice, traditionalism, and sincerity. Another major

37 philosophy is Taoism from the sagas Laozi and Zhuangzi. It advocated nonaction

(wu wei), the strength of softness, spontaneity, and relativism. Although it serves as a rival to Confucianism, a school of active morality, this rivalry is compromised and given perspective by the idiom "practice Confucianism on the outside,

Taoism on the inside."

Figure 15: The philosophies influencing Chinese people significantly

Propitious omen --- Some shapes, objects, phenomena and signs are considered to be propitious omens in Chinese culture, such as circles, Ruyi and auspicious clouds. Chinese people would love to see these elements appearing in designs since people believe they will bring luck and good wishes to life.

Figure 16: Samples of propitious omens

Signature animal and plant --- Some animals and plants that can represent

Chinese culture or only exist in Chinese areas, such as dragon, phoenix, panda, antelope, Panax ginseng, and Cathaya argyrophylla.

Figure 17: Samples of signature animals and plants

Cultural heritage --- Chinese painting, calligraphy, seal carving, cloisonne,

Chinese knots, Beijing Opera, shadow play and so on.

Figure 18: Samples of cultural heritages

Chinese character --- Chinese character has a history of over 3,000 years. It is a kind of hieroglyphic which originated from carapace-bone-script in the Shang

Dynasty (16th - 11th century BC). It then developed into different forms of calligraphic handwritings like large seal script, small seal script, official script,

39 regular script, cursive script and running script (Chinese Language). There are altogether 80,000 Chinese words or so that originate from ancient times. Among them, about 3,000 words for daily use are available to express over 99% of the information in written form because a Chinese word contains many different meanings. The calligraphy which developed from Chinese characters occupies a distinguished position in the field of traditional art. It is not only a means of communication, but also a means of expressing a person's inner world in an aesthetic sense.

Figure 19: Samples of Chinese characters

5.2 The essence of Chinese culture

In order to understand and utilize Chinese elements effectively and thoroughly, one need to understand the essence of Chinese culture. Traditional Chinese culture shows a distinctive practical-emotional spirit and a tendency to harmoniously unite human beings with nature, and believes that beauty is, first and foremost, a free state or way (Dao) of human life; the most important thing

40 for human beings is how to make their own lives and existence beautiful

(Qingping, 2006).

5.3 The importance of applying Chinese elements in luxury goods design

First of all, Chinese elements are good design resources, some of which can inspire designers in various fields. Secondly, Chinese elements have been favored by native designers and foreign designers, especially in these years. Designers have applied Chinese elements in numerous product designs. Luxury product design can also make a try. Thirdly, some good designs that applied Chinese elements do attract consumers not only in China but also all over the world. Last but not least, currently there is no sufficient documentation in this topic, so it is worthy to explore and dig further.

5.4 The application of Chinese elements in current luxury product design

5.4.1 Typical example one

Blue-white porcelain is one of the famous Chinese cultural symbols. The color combination adds value and esthetics to the luxury dress.

Figure 20: Example one: dress design

5.4.2 Typical example two

A circle can mean perfect, satisfactory and happy in Chinese culture; in addition of that, this shape with green color means safe, well-being and lucky. Chinese love this icon and the earring design utilized it smartly.

Figure 21: Example two: earring design

5.4.3 Typical example three

Shanghai is a one of the most famous cities in China and well-known by many foreigners. It is kind of the modern symbol of China. This watch design adopted

Chinese characters “Shanghai” and made them form an artistic shape. The color combination is also elegant.

Figure 22: Example three: watch design

5.5 Current Problems in applying Chinese culture in luxury goods

5.5.1 Underutilization of most of the resources

China has a civilization history longer than 5000 years. Chinese culture is an inexhaustible thesaurus for designer to use in design. But it is insufficient for modern design to inherit and develop the traditional elements. Many great resources have been ignored or forgotten by not only foreigner designers but also Chinese local designers, which is really a pity.

5.5.2 Monotonous application

The application of Chinese elements in luxury goods seems to be monotonous and simple. Most designs just copy the original form of certain of Chinese element. The c

5.5.3 Misunderstanding of the meaning

Chinese pay great attention to the “spirit” and “meaning” of traditional elements.

However, some foreign designers do not understand or even misread Chinese culture. What they design would never sale in Chinese market well.

5.6 How to express Chinese elements in luxury product design

After reviewing tons of luxury product design and other product design, we conclude seven major methods of expressing Chinese elements. Please read the following context in detail.

5.6.1 Direct Expression

Direct expression is using almost exactly the same “image” and designing a product accordingly. The prototype has not been modified much so it can be recognized immediately when people saw the product. The key factor is the

45 prototype should be lovely, enjoyable, interesting or elegant, and it can be recognized when standing alone.

Many of the Chinese elements can be used directly in product design, such as what in the categories of totem, propitious omen, signature animal and plant, and Chinese character.

For example: The Cartier panda doll and Swarovski crystal panda were based on the real animal since panda is one of the most famous Chinese signature animals.

(Figure 5.11) They convey the Chinese feeling successfully.

Figure 23: Example of direct expression

5.6.2 Concrete Expression

Adding details into a product design and making the prototype to be concrete can be considered as concrete expression. It usually applied in designs that connect with imagined animals, figures and places, such as dragon and Nvwo (a

46 famous character from myth). The difference between concrete expression and direct expression is that the former doesn’t reflect the reality while the latter does. There is no exact image for the prototype, so it is space for creation.

However, just because there is no exact image, one needs to pay attention of how to identify the prototype from a design result.

The Chinese elements which may be suitable to be expressed concretely include characters in religious belief and signature animals in myth.

For example, the cigarette lighter and the watch in the figure below both attached a vivid dragon on them. It looks like the animal is real but the details about it is from designers’ imagination.

Figure 24: Example of concrete expression

5.6.3 Simplified Expression

It is opposite to concrete expression. A product design that reduces the comprehensive prototype into a simplified one is simplified expression. It is frequently applied in many designs because of the natural complexity of most of the Chinese elements. There are three kinds of simplified expressions in accordance with different situations. For some elements that contain too much content, designers can keep the most important features of the prototype while eliminate the unnecessary branches. In another case that some elements contain similar or duplicated parts; designer may use one of them since “you may know by a handful the whole sack”. The third one is that part of certain element conveys unique Chinese culture; it may be picked up alone and added into designs.

Almost all categories of Chinese elements can be used in simplified expression, just in different degrees.

For example, Tai Chi, as well known for its simplified icon, actually was with many more details in the original figure. The official name of the figure is “Tai Chi with eight diagrams”. But when applied to product design, usually the center part

“yinyang” is chosen. The cell phone pendant in the right of the figure below is such an example.

Figure 25: Example of simplified expression

5.6.4 Abstract Expression

If simplified expression can still not meet the requirements in product design, abstract expression can make it. Abstract art uses a visual language of form, color and line to create a composition which may exist with a degree of independence from visual references in the world (Arnheim, 1972). Abstract expression, if applied appropriately, is able to create a concise style, or present aesthetic feeling. However, designers may need to make more effort while utilizing this method since it is a little more complex than direct expression or simplified expression. In order to accurately, effectively and clearly transfer a prototype to an artistic design piece, designers must first be an interpreter of the prototype, then use their ways express their feelings, communicating the true meaning of the original element to the others through their own artistic creating and processing based on analyzing the style, structure, and content. The prototype in the design result may not be recognized in the first glance but can still make a great design if it adds connotation or a sense of beauty to the product.

Abstract expression can be used for most categories of Chinese elements to be applied in product design.

For example: one astronomical phenomenon is called “auspicious cloud” in China and Chinese people consider it as a propitious omen. The 2008 Olympic Torch, which was named as "Lucky Cloud" was just based on that. Designers created a kind of abstract traditional scrolls to represent that “auspicious cloud”. The Torch was also designed in reference to the traditional Chinese concept of the Five

Phases (Wu Xing - Wood Fire Earth Metal Water) that make up the entire universe.

Figure 26: Example of abstract expression

5.6.5 Imagery Expression

Imagery expression, sometimes, can be seen as one particular kind of abstract expressions but should be more “fortified”. Imagery has been emphasized in

Chinese culture and the word imagery or “Yixiang” in Chinese literary bears more connotation than that of Imagism in western literary. The former one puts emphasis on “Yi”, which refers to the human thoughts and subjective feelings.

Imagery in Chinese culture is a fusion of objectivity subjectivity, scene and emotion, nature and soul. There is a saying that “only to be sensed, but not explained” can reveal part of the meaning of imagery. Imagery expression requires designers fully understand the connotation of certain Chinese element and present it in a delicate way. The visual art they create from imagery expression is the distillation of the original prototype.

For example, the emblem of “Dancing Beijing” for 2008 Olympic: it draws on various elements of Chinese culture, depicting a traditional red Chinese seal above the words "Beijing 2008" and the Olympic rings. The seal is inscribed with a stylized calligraphic rendition of the Chinese character 京 (jīng, meaning 'capital', from the name of the host city) in the form of a dancing figure.[1] The curves are also claimed to suggest the body of a wriggling Chinese dragon. The open arms of the figure symbolize the invitation of China to the world to share in its culture.

The figure also resembles that of a runner crossing the finish line. Red, the dominant color of the emblem, is an important color in Chinese society, often signifying good luck.

5.6.6 Duplicated Expression

Sometimes it would be monotonous or rigid if remaining one Chinese element unchanged and alone in product design. In that case, we can use duplicated expression to create more varieties and more interesting forms. Duplicated expression can symbolize the Chinese element and break its previous feeling of through reduplicate copying, arranging, grouping and combining the units and then form a new unified whole. In this way we may get diversified, flexible and acclimation products.

Duplicated expression should be used for relatively simple Chinese elements, such as those in the categories of totem, propitious omen and Chinese character, in product design. Some other Chinese elements can also be simplified first and then reduplicated to create a new pattern in designs.

For example: the icon in the left of Figure 5.16 means “good luck” in Buddhism, which has a lot of believers in China. (It is like the reversed logo of fascist but actually has much longer history than that and has nothing to do with fascist.) It is well known and welcomed by most Chinese people. The decorated door in the right of Figure 5.16 was adopt duplicated expression of the icon and composed

52 an interesting vein, which is just like a piece of art.

Figure 27: Example of duplicated expression

5.6.7 Integrated Expression

Integrated expression, just as the term implies, integrates two or more different ways to express Chinese elements in one product design. It is challenging indeed, but through a delicate balance of symbolism, precision and whimsical creativity, may bring great design results. Also it can show a designer’s artistic construction and creative technique well. In the meantime, a designer should pay attention to use this method and work carefully since the complexity might turn out to be in lack of consistency or harmony.

Integrated expression can be composed by any two or more kinds of other expressions so it could be suitable for all the Chinese elements. Still, designers need to choose the appropriate Chinese elements with caution in consideration of the actual conditions when applying this method.

5.6.8 Other suggestions

There may be other efficient ways of expressing and applying Chinese elements in designs. Because every design is different, designers should explore the best means in accordance with each specific situation.

5.7 Other design principles related to Chinese culture

Positive affect makes people more tolerant of minor difficulties and more flexible and creative in finding solutions. Products designed for relaxed and pleasant occasions can enhance their usability through pleasant, aesthetic design (Norman,

2002). Because affect is always passing judgments, presenting people with immediate information about the world, based on users' earlier experiences and cultural background. It is therefore important to investigate the affection of form and color among the Chinese segment.

As demonstrated in Chapter 4, colors are powerful non-verbal communication tools which influence emotions, actions and how people respond to things and ideas. Designers should pay attention to the colors they use in products since colors may have different meanings to people in different cultures. The list below is a brief explanation of the colors and how they are seen upon in China.

Red: reunion, good luck, happiness, honesty, loyalty health, harmony, prosperity and Communist. Chinese people are very fond of the red color. It is frequently used in celebrations like weddings, birthdays and inaugurations. Chinese people tend to wear red colored dresses to add in a festive mood in any festivities. Red

Lantern, which can be found many places in China, is supposed to warm the house, send away evil spirits and create an atmosphere of harmony. A red envelope is a monetary gift which is given in Chinese society during holiday or special occasions. Red is strictly forbidden at funerals.

Yellow: means warm, prosperity, holy and serious. It is favored by Chinese people too. The Chinese saying, Yellow generates Yin and Yang, implies that yellow is the center of everything. The color of dragon is yellow. The emperors in history all wore yellow robes and attires while modern Chinese fashions continue to reflect this love for golden tones. Yellow often decorates royal palaces, altars and temples. Yellow is now also very popular for interior decoration.

Green: peace, health, prosperity, harmony and life. Green is widely regarded as the color of freshness and cleanliness. Green often implies environment protection and healthy lifestyle. Green cannot be used in hats since a green hat signifies cheating behavior and used as an idiom for a cuckold.

Blue: calmness, depth and cleanliness. Blue is frequently used in electronic displays and designs.

White: signifies mourning and sadness in Chinese tradition. White is associated with death and is used predominantly in funerals in Chinese culture. Chinese people wore white clothes when they mourned for the dead. However, it can also mean brightness, purity, and fulfillment. Young people have more tolerance with white color, but the older generations feel this color is unlucky, and therefore not suitable for celebrations.

Black: power, authority. Black is used in daily wear giving a feeling of solemn but sometimes it also signifies mourning like white. The Taiji symbol uses black and white to represent the unity of Yin and Yang. Ancient Chinese regarded black as the king of colors and honored black longer than any other color. Lao Zi said that five colors make people blind, so the Dao School chose black as the color of the

Dao.

5.8 Conclusion

To sum up the above arguments, we can get a list of design methods and corresponding design elements. It may be a valuable tool for designers who are interested in applying Chinese culture to product designs. The figure below

56 illustrates all the expression methods mentioned before with corresponding

Chinese elements.

Figure 28: Chinese elements with corresponding expressions

Chapter 6. Suggestions for future development

6.1 Suggestions for International companies to promote the Chinese market

6.1.1 Do some investigations before design

As Marieke de Mooij says “We don't really have global consumers.” (Mooij, 2004).

Consumers from different countries think and behave differently. The best way to understand Chinese consumers and avoid cultural mistakes is to do a consumer survey before the whole design process. It usually includes questionnaires and in- depth interviews, from which we can get useful information on both quality and quantity aspects of the target consumers’ needs and requirements. The Chinese consumer psychology is a mix of old traditions and culture together with the new influences of the West in the post Open-Door society. Since this 1978 ground- breaking change a consumer revolution has spread across the Chinese consumers (Reuvid & Yong, 2003). Because everything in the world is changing, those old data about target people and people’s preferences may be not valid anymore. That’s why a synchronous survey is essential. Since the Internet is now well developed; a survey might even be set up online. High point websites, luxury

58 brands portals, certain pinpoint BBS and even Facebook may all have the potential to be the survey sites.

However, if it is not feasible, an investigation of Chinese culture and Chinese lifestyle should be done in advance. It does not have to be very comprehensive and cover every aspect, but should relate to the usage and context of the product, also should serve as a guideline for the design.

Moreover, as far as certain Chinese elements are applied in a design, the thorough understanding of their meanings and symbolic significance is essential.

Thanks to modern technology, there are plenty of resources including the

Internet, educational TV programs, and numerous books.

6.1.2 Ask opinions from Chinese designers, researchers or anthropologists

Another ways to interpret Chinese culture is to get opinions and suggestions from native residents, especially designers, researchers and anthropologists. If these people were born and have grown up in China, they should have a complete understanding of Chinese culture and Chinese thinking. Together with their professional background, they probably have more insights on how luxury products should be designed, packaged and advertised for Chinese consumers.

In addition, please keep in mind that since China is vast in territory, people from different areas such as north, south, east and west may have different views towards one topic. Therefore, it would be wiser to learn about localized perceptions.

6.1.3 Hire Chinese designers and researchers

If a company wants to make the Chinese market one of the most important target markets, it really should hire Chinese designers or researchers. In this way, it could save time in background research and Chinese culture study, and avoid making design mistakes or manufacturing goods that the market could not absorb. In recent years, more and more young Chinese designers go abroad to seek career development, so companies have the opportunity to look for a excellent candidate among them. As a Chinese old saying, “the splendid steed gallops because of Bole”, if a company has the good sense to recognize a talented designer, it may take the lead in grasping the growth Chinese market.

6.2 Suggestions for Chinese companies that want to establish their own luxury brands

The reason why luxury brands became luxury brands is worthy studying. As the mentioned earlier, a luxury brand contains six essential factors. Two of them,

60 brand heritage (many Chinese brands have long history) and product quality(Chinese companies have the ability to manufacture competitive products) are not the obstacles for Chinese brands to step into the luxury world, but

Chinese companies still have their shortcomings that cannot been ignored. There are some brief suggestions for Chinese companies that want to establish their own luxury brands listed below.

6.2.1 Learn from those famous luxury brands while build own styles

Learning from international luxury brands means studying their development history, design management and advertising strategy and distill the nutrition and have it work for us. In the meantime, Chinese brands should also establish their own unique styles instead of simulating other existing luxury brands. It has been too long for many Chinese brands to imitate foreign brands and lose their creativity. Now the situation needs to be changed and that is the only way

Chinese companies can keep a foothold in the high level business stage.

6.2.2 Make full use of cultural resources

The sedimentary accretion of Chinese culture over thousands of years left great resources to the Chinese. Chinese companies should realize the value of Chinese culture and make effort to disseminate it all over the world. If a design could

61 demonstrate the brilliance of Chinese culture, it will have great potential to strike a chord in Chinese consumers.

Here the previous chapter demonstrates the range and content of Chinese elements, which is one of the most important cultural representative symbols, can be used as a resource pool. Meanwhile, Chinese companies should continue exploring and utilizing other culture-relative resources to contribute to produce development.

6.2.3 Excavate the connotation of culture and promote cultural grade

The word “culture” here refers to company culture and product culture. Luxury is not merely about the appearance and style, but the strong and desirable cultural connotation is the source of its endless fascination. Luxury consumers place high hopes on gaining cultural identity through their luxury goods consumption. In order to meet their expectation, Chinese companies should include the distinctive artistic features and humanist ideological contents into their product, thus it may attract more high-level consumers. Only on the basis of traditional Chinese culture, combining modern life requirements and offering excellent quality, can

Chinese companies reinvent their strong brand culture.

6.2.4 Repackage company image

There is an old saying that “good wine needs no bush” which means good products or companies do not need advertisement. But now things have changed. Many Chinese companies follow the traditional pattern to make full effort on producing great products but do not pay much attention in advertising and other stuffs, which really limits their development.

Chinese companies should analyze their advantages, repackage company images, demonstrate enterprise styles and propagandize goods confidently. With a fine image, outstanding staffs and top-notch quality, a company and its brand can grow fast and healthily.

6.2.5 Kindle the patriotic emotion of consumers

Emotion plays a significant role in luxury consumption behavior and if a Chinese brand can kindle the patriotic emotion of luxury consumers and encourage them to buy Chinese luxury goods, it will have great impact not only on the Chinese luxury industry, but also on the Chinese economy. Actually, promoting home products is currently on the way and many Chinese consumers have gradually switched from foreign brands to local ones, especially in the cosmetics industry.

For example, a considerable number of young women who used brands such as

SK-II or Lancome have turned to native brands Herborist and Chcedo. This trend began around 2008 and may ultimately affect other luxury industry.

After all, we have reasons to believe China will have its own luxury brands in the very near future. We expect that day.

Chapter 7: Conclusion

This thesis discusses about the luxury goods design for the Chinese market. From the background research, we know that the Chinese market for luxury goods is expanding rapidly and have great potential. Therefore many luxury companies aim China as one of their major target markets and Chinese local companies are working to establish their own luxury brands.

However, the competition in the Chinese market is severe, and the market itself has several problems which make it hard to achieve business success. Then how should companies do? The key is to understand Chinese culture and characteristics of Chinese consumers, and produce appropriate luxury goods through careful market research and creative designs. In order to strike a chord in

Chinese consumers, application of Chinese culture in luxury goods design is a good method. But because Chinese culture is complex and subtle, there are inevitably some misconceptions. Some of the luxury product designs that adopt

Chinese culture become confusing and even ridiculous, such as using undesirable colors or undesirable shapes, lacking of important functions or providing redundant functions, and using inaccurate Chinese elements. The reasons of the

65 misunderstanding mainly lie in the misconceptions in the meaning of Chinese elements, Chinese lifestyle and Chinese aesthetics.

Then how to correctly apply Chinese culture, especially Chinese elements into luxury goods design? Here the author demonstrates the range and content of

Chinese elements, the essence of Chinese culture and provides typical examples as reference. Then effective ways of expressing Chinese elements in luxury product design are discussed in detail. There are mainly seven expression means according to different categories of elements: direct expression, concrete expression, simplified expression, abstract expression, imagery expression, duplicated expression and integrated expression. Also other design principles related to Chinese culture, for example, colors and forms, are introduced in the meantime.

Finally, the thesis points out some suggestions about future development for international luxury companies and Chinese local companies based on the previous research.

The information and study results presented in this thesis can serve as a guideline for current luxury companies, Chinese local companies, Chinese designers, foreign designers and advertising agents.

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