Index

Page numbers in italics refer to illustrations

A (Atlantic Alternative), 100. See also Anti-corruption policy (China), 19–26, 30, CO-J-A-C theory of brand evolution 41, 124 Abercrombie & Fitch, 7, 14, 180 Apparel. See also specifi c brands Absolut vodka, 51 Chinese brands, 148 Absolute luxury, 66, 67, 81, 82, 212, 222 fast fashion retailers, 13, 148. See also Fast- Accessible “core” luxury items, 44, 46 moving fashion and consumer goods Adidas, 145, 148, 152, 153, 205, 206 gifting, 22 Aelia, 136 market entry, low barriers to, 148, 179 Aesop, 84 outlet stores, 176. See also Outlet stores Aff ordable luxury items, 44, 45, 199, 221 Apple The Age of Parasite Singles (Yamada), 35 Beats by Dre, 170 Ahrendts, Angela, 201, 206 brand building, 151, 152 Air pollution, 34, 91, 189, 203, 204 as competitor for luxury talent, 91, Aldo, 28 COPYRIGHTED 201,MATERIAL 202 Alfred Dunhill. Seee Dunhill in Hong Kong, 13, 28, 29 Ali, Muhammad, 45 and luxury competition, 198, 200, Amazon, 208 201, 209 American consumers. See United States strategic partnerships, 208 American Girl, 126 warranties, apology to China for, 78 American Tourister, 104, 105 Armand de Brignac (Ace of Spades), 170 AmorePacifi c group, 81, 155 Armani, 223 Anta, 145, 153 Arnault, Bernard, 185

227

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Arnault family, 65 Brazil, 186, 187, 196, 202, 211 Art, Chinese contemporary, 157 Breeze Center shopping mall, 190 Asian Tigers, 6, 126. See also Hong Kong; BRIC countries, 186, 187, 196. See also Singapore; South Korea; Taiwan specifi c countries Asics, 152, 206 Brunello Cuccinelli, 13, 28, 29, 66, 68, Asprey, 223 212, 223 ATMs in China, 116 Budget competition, 198–204, 209 Aubry, Martine, 108 Bulgari, 27, 45, 65, 99, 150, 220 Audemars Piguet, 67, 223 Burberry Australia, 134, 135, 149 about, 221 Avatars. See also individual avatars digital marketing, 206–208 described, xix–xxiv and gift giving, 22 and mass-lux pyramid, xix in Hong Kong, 14 and true luxury, 213, 215 in Japan, 99 Azar, Karim, 28, 29 Manhattan store, 64 outlet stores, 176 Bacardi group, 170 in South Korea, 58, 127, 191 Baidu, 154 Burke, Michael, 87 Baiju, 22, 51 Bailey, Christopher, 206 C (China), 100. See also CO-J-A-C Bailian Group, 176 theory of brand evolution , 219 Calvin Klein, 149 Banana leaf parable, 214, 215 Cambodia, 126 Beats by Dre, 170 Canali, 134 Belin, Francis, 32 Canton Road (Hong Kong), 7, 8, 10, Bell & Ross, 14 18, 139 Bella Vita mall, 132 Cantonese, 6 Belle, 145 Carcelle, Yves, 87 Berluti, 220 Cartier Bicester Village, 176, 177 Asian market, 65 Bieber, Justin, 159, 205 brand evolution, 100 Billboards, 27 Chinese jewellers compared, 150, 151 Biostime, 147 Chinese market, 192–195 Blancpain, 20 and consumer trust, 43 Blum Leon, 108, 109 and female-driven market, 27 Bo Xilai, 22 history of and brand credibility, 62 Body Shop, 81, 154 in Hong Kong, 7, 10 Bono, 45, 77 and Indian culture, 187, 188 Boots, 84 museum exhibits, 193 , 67, 81, 82, 135, 219 “Must de Cartier” initiative, 77 Bowie, David, 77 Richemont group, as part of, 114, Brand advertising, 44, 45 115, 220 Brand ambassadors, 44, 45 watches, 20, 76, 77 Brand building, 151–157, 198 Casiraghi, Charlotte, 54, 59 Brand legitimacy and quality assurance, 38, Causeway Bay (Hong Kong), 10–12 76, 114. See also Counterfeit goods CEIC (China Economic Information Brand loyalty, 77, 79, 81 Center), 9, 112

bind 228 16 July 2014 10:15 PM Index 229

Celebrity endorsements, 44, 45, 159, 170, Silk Road, xvii, xviii 171, 205 Special Administrative Regions, 5. See Céline, 176, 220 also Hong Kong; Macau Chaddha, Radha, 190 Special Economic Zones, 15n19, 34, Champagne, 39, 40, 170, 220 118–119 Chanel, 7, 11, 67, 81, 123, 134, 221 statistics, 225, 226 Chanel, Coco (Gabrielle), 25, 31, 59, taxes. Seee Taxes 217, 221 travel, impact of on Chinese luxury Chen, Brittany (avatar) market, 184, 185. See also Travel brand interests, 125, 126 women as drivers of Chinese luxury and Chinese brands, 145, 155 market, 26, 27, 65, 66, 97 described, xxii, xxiii Xi administration, xxx, 19–26, 30, 41, 124 Europe, travel to, 124, 125 Chinese brands. See also specifi c brands gifting, 19 apparel, 148 Hong Kong, shopping in, 13 avatars’ views on, 145 Hong Kong, travel to, 9, 112 and brand building, 151–157, 159 Korean pop culture, infl uence of, 101, 102 competition with Western brands, Shanghai Tang, views on, 148 146–151, 159 shopping, views on, 18 cosmetics, 147 and understated versus fl ashy fashion, 215 health and safety issues, 146, 147. See also Cheung Kong Holdings, 6 Health and safety issues Chiang Kai-shek, 33 jewellery, 148–151 China luxury brands, 148, 149, 155–157, 179 “Bling Dynasty,” 211, 212 snacks and food items, 146 as BRIC country, 186, 187, 196 sporting goods, 152, 153 consumers in. See Chinese consumers “too Chinese” versus not Chinese as emerging market, 186 enough, 179–182 gift giving in. See Gifting trust issues, 147 Guangdong, 6n6, 15, 25, 34n4, 119 Chinese consumers. See also Chen, Brittany Guangzhou–Shenzhen–Hong Kong (avatar); Li, Calvin (avatar); Ma, Tiff any express rail, 15 (avatar); Wang, Lewis (avatar); Zhou, health and safety issues. Seee Health and Hermes (avatar) safety issues intelligent purchases, 177, 178 luxury brands, role in evolution of, Japan as inspiration for, 37 98–100 outlet centers, 176, 177 luxury market, growth of, xxiv-xxviii, 59, price awareness, 79, 96, 97, 103, 104, 112, 60, 84, 185, 186, 195, 196 113, 174–177 male domination of Chinese luxury South Korea, role of in consumer trends, market, 16–18, 26, 27, 30, 32, 36, 52 100–102, 106 middle class, xxv-xxviii, 51, 60–62, 68, 73 and ubiquity of luxury brands, 59–62, 73 as Middle Kingdom (Central State), value-for-money motivation, 166, 183, 184 175–179, 182 “one country, two systems” policy, 5, 7, Chinese National Tourism Administration, 109 34, 118 Choco Pie, 146 one-child policy, 36, 37 Chopard, 65, 223 Shanghai, 15, 97 Chow Tai Fook, 10, 43, 145, 150 Shenzhen, 15, 15n19, 34, 119, 226 Christian Dior, 27, 132, 134

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Cîroc vodka, 38, 45, 168, 170 Cotai, Macau, 121, 123 City of Dreams, 121, 122 Counterfeit goods, 15n19, 25, 34, 37, 113, City Plaza, 12 114. See also Brand legitimacy and City Super, 28, 29 quality assurance Clinique, 155 Cristal, 170 CO (Continent of Origin), 98, 99. See also The Cult of the Luxury Brandd (Chadha), 19 CO-J-A-C theory of brand evolution Cultural Revolution, 5, 33, 119 Coach Customer service, 114 about, 221 Customized products, 55 as aff ordable luxury, 45, 61 Chinese market, 61, 68, 178, 179, 199, 200 Dafoe, Willem, 171 in Europe, 100 Daks, 80, 81 and evolution of luxury brands, 99 Danone, 147 “going lifestyle,” 86–89 Daphne, 145, 148, 189 in Japan, 37, 99 David and Goliath (Gladwell), 55 outlet stores, 168, 176 David Yurman, 125 production in China, 79 Deneve, Paul, 201 training programs for Chinese staff , 114 Deng, Xiaoping, 5, 34, 36, 211 value for money, 45, 68, 81, 179, 199, 221 Desirability of brand, 38, 39 Cognac, 22, 37, 40, 41, 50, 51, 99, 138, 170, DFS (Duty Free Shoppers), 8, 98, 121, 122, 172, 220 129, 136–140, 220 Cognac D’Ussé, 170 Diageo, 38, 39, 170 CO-J-A-C theory of brand evolution, Diaz, Cameron, 171 98–100, 126 DiCaprio, Leonardo, 171 Combs, Sean (P. Diddy), 45, 170 Digital marketing, 206–208 Conformity, 32, 153–154. See also “Fitting Din Tai Fung, 145 in” as reason for luxury purchases Diptyque, 13 Confucianism, 33, 153 Discretionary spending, competition Congés payés, 108, 109 for, 198–204, 209 Connery, Sean, 45, 77 Doctoroff , To m , 32 Constans, Jordi, 87 Dolce & Gabbana, 223 Consumer awareness, 77, 78 Dom Pérignon, 220 Consumer profi les, 36, 37. See also Avatars Dominion Diamond Corporation, 65 Consumption tax (China), 23, 24, 79, 113 Donna Karan, 66, 149 Converse, 152 Doriano, 149 Cook, Tim, 201 Douglas, 84 Corporate gift giving, 18–26 Dr. Dre, 169, 170 Corruption, 19, 20, 25, 26. See also Anti- Du, Juan, 149 corruption policy; Guanxi Dufry, 136 Cosmetic surgery, 202 Dunhill (Alfred Dunhill), 13, 100, 180, 199 Cosmetics. See also specifi c brands Duty Free Shoppers (DFS), 8, 98, 121, 122, in Asia, 84 129, 136–140, 220 Chinese market, 147 Duty-free markets in South Korea, 127, 128 consumption tax on (China), 24 in Japan, 35 Eames, Charles, 214 in Korea, 80, 81, 102, 149 Eames, Ray (née Kaiser), 214 retail stores, 84–86 Economies of scale, 86–88, 91

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850C, 189 and DFS, 137 Eight Musts (Xi8), 21 everyday luxury, 44, 45 1881 Heritage building, 10 LVMH group, 66, 220 Elements mall, 14, 15 as “mass-tige” products, 55 E-mart, 78 as part of “going lifestyle,” 86, 88 Emerging markets, 40, 49, 166, 168, France 185–187 Champagne, 39, 40. See also Champagne Emperor group, 11 Chinese travel to, 125 The End of Men and the Rise of Women Cognac, 51. See also Cognac (Rosin), 27 “French paradox,” 55, 56 Entry price points, 81, 82. See also Value limited workweek and travel, 108, 109 for money L’Occitane, 84, 85 Escada, 223 luxury market in, 171 Eslite Taipei bookshop, 12 , 7–9, 47, 113, 124, 125 Esprit, 180 social reforms and travel, 108, 109 Estée Lauder group, 85, 147, 155 “the third offi ce,” 47 Etude House, 81, 102 Free individual travellers (FITs), 139 Europe. See also individual countries luxury market, 188, 189, 196 Galaxy Entertainment, 119, 122 role of in evolution of luxury brands, Gaming 98–100 in Asian countries, 124 Everday luxury items, 44, 45 in Macau, 15, 117–124 Exarchopoulos, Adèle, 27 in Singapore, 129–130 Exception de Mindmix, 143, 144 Gangnam Executive compensation, 90 “Beauty Belt,” 202 Executive recruiting, 89–91 luxury shopping area, 159 “Gangnam Style” (song), 102, 202 Face Shop, 81, 102, 154, 155 Garnier, 147 Facebook, 207 G-Dragon, 159 FAO Schwarz, 126 Geiger, Reinold, 84 Far East Sogo, 189 Germany, 60, 158, 167, 171, 189, 206, 226 Fast-moving fashion and consumer goods, Ghesquière, Nicholas, 87 13, 44, 45, 59, 148, 154, 204–206 Giannini, Frida, 68, 70 Fay, 222 Gifting. See also Guanxi Fendi, 66, 220 apparel, 22 Ferragamo, 99, 135, 176, 223 and brand names, 150, 151 Festival Walk, 12 and Chinese anti-corruption policy, 21–25. Financial approach to defi ning luxury, 63 See alsoo Anti-corruption policy (China) “Fitting in” as reason for luxury purchases, corporate gift giving, 18–26 32, 37, 47, 164, 165, 171, 172, 214, 216 importance of in China, 112, 138 FJ Benjamin, 14 in Japan, 112 Florentia Village outlet, 176, 177 and male-dominated luxury market in Four Seasons, 13, 29, 85, 121 China, 18, 30, 36 4 Cs (clean, close, cuisine, cool), 127 preferred brands for men in China, 201 Foxconn, 189 watches, 20, 22, 23, 25, 26 Fragrances. See also specifi c brands weddings, anniversaries, and birthdays, Asian market, 138 58, 145, 149

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Giordano, 34 and male-domination of Chinese luxury Givenchy, 66, 87, 220 market, 18, 30, 36 Gladwell, Malcolm, 55 Glaenzer, Jules, 192, 193 in Australia, 135 Glenmorangie Scotch, 220 in China, 96, 199 Global Blue, 112, 116, 175 and evolution of luxury brands, 99 Global fi nancial crisis, impact of, xxx, 81, Forever Now campaign, 54, 59 82, 84, 103 and global fi nancial crisis, impact of, 81–84 Globalisation, 164–166, 182 growth, 68 “Going lifestyle,” 86–88, 91 interview with president and CEO of, Gold 68–73 Chinese jewellers, 149, 150 in Korea, 58 consumption tax in China, 113 outlet stores, 176 jewellery in India, 187 as part of group, 67, 148, 219 purchase of in China, 43, 149, 150 Gucci, Aldo, 69 “Golden Circle,” 151, 152, 200 Gucci, Guccio, 72 Golden Delta of Guangdong. Seee Pearl Guerlain, 16, 220 River Delta Guilt factor, 166, 167, 172, 174, 191 Gomez, Selena, 159, 205 Hainan, China, 124, 128 Google, 207 Harbour City shopping center, 10 Graff , 46, 187, 223 Harry Winston, 65 Grand Canal shops, 121 Hartmann, 104, 106 The Great Good Placee (Oldenburg), 47 Hayek family, 65 Great Leap Forward, 33 Health and safety issues Grey Goose, 168 air pollution, 34, 91, 189, 203, 204 Growth infant formula scandal, 146, 147 Chinese luxury market, 59, 60, 84, 185, SARS (severe acute respiratory 186, 195, 196 syndrome), 5, 6 cost of, 84–86 Henderson Land, 13 and “going lifestyle,” 86–88 Hengqin Island, 118 Japanese luxury market, 36 Hengqing, 124 pattern of (CO-J-A-C theory) for Hennessy, 22, 66, 170, 220 development of luxury brand, Hera, 102 98–102, 126 Hermès, 67, 81, 99, 149, 201, 220, 222 South Korea, role of in consumer Hewson, Ali, 77 trends, 100–102 High Sierra, 104, 106 of travel industry, 13 High-net-worth individuals (HNWIs) in Gu Kailai, 22 China, 60 Guangdong, China, 6n6, 15, 25, 34n4, Hip-hop and rap music, infl uence of, 169, 170 119 History approach to defi ning luxury, 62 Guangzhou–Shenzhen–Hong Kong H&M, 148, 204, 206 express rail, 15 Ho, Dorian, 149 Guanxi. See also Gifting Ho, Lawrence, 119 about, 18, 19 Ho, Pansy, 119 and gift giving, 18–21, 25, 26, 36. See also Ho, Stanley, 119 Anti-corruption policy (China) Hogan, 222

bind 232 16 July 2014 10:15 PM Index 233

Hollister, 7 Import duties Hong Kong Brazil, 186 air conditioning in stores, 8 China, 78, 79, 104, 112, 113 British infl uence, 4 India, 187, 192 as corporate headquarters, 91 Indonesia, 133, 192 duty-free advantage, 16, 113 and price diff erentials, 78, 79, 104 expatriates in, 6 wine and spirits, 40 as fi nancial center, 15 Incheon airport (Seoul, South Korea), group travel to, 6, 9, 10 127 Gweilos (foreigners), 6 India, 139, 186, 187, 196 history of, 4–7 Individual expression, 33 hotel and restaurant expenditures, 9 Indonesia, 133, 139, 189, 192, 196, 211 hotels, 9 Infant formula scandal, 146, 147 importance of in understanding Chinese Innisfree, 81 luxury market, 4–16 Innovation, 154 leases and rent increases, 11, 13, 15 International Financial Center. See locals, sales to, 8, 12–14, 29, 97 IFC (International Financial Center) luxury market in, 7–16, 112 mall and mainland China, 4, 5 Internet, 168, 174, 175. See also Online malls and shopping districts, 10–15 shopping; Social media “one country, two systems” policy, 5, 7, ION Orchard mall (Singapore), 129 34, 118 Italian Fashion Center (IFC), 13. See alsoo IFC population, 6 (International Financial Center) mall queues for shopping, 7, 8, 14 Italy, 189, 202 shopping centers, 9–15 IWC, 10, 221 success of and Chinese entrepreneur emigres, 34 J (Japan), 99. See also CO-J-A-C theory of transition to Chinese rule, 5 brand evolution travel to, 6, 7, 9, 10, 16, 29, 30, 112 Jacobs, Marc, 87 watches, market for, 138 Jaeger-LeCoultre, 10, 41, 42, 65, 221 Hongkong Land, 13 James Parker Crown, 119 Hotel Shila (Seoul, South Korea), 128, 136, Japan 202 Bulgari, 99 Hourglass shape of luxury consumption, Burberry, 99 82, 84 Coach, 37, 99 Hoya, Oscar de la, 172 Cognac, 99 Hu, Jintao, 20 consumer awareness, 77, 78 Hugo Boss, 99, 199, 223 consumer trends, role in, 100–102, 106 Hung, Stephen, 123 cosmetics in, 35 Hurun Report, 60 female-driven luxury market, 32 Hutchison Whampoa, 6 gifting in, 112 Hysan group, 12 “herbivore men,” 35 Hysan Place, 12 Hermès, 99 Hugo Boss, 9999 Icebreaker, 134 as inspiration for Chinese consumers, 37 IFC (International Financial Center) mall, jewellery brands, 156 13, 14, 28, 29, 85, 201 L’Occitane, 99

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Japan (continued ) Kate Spade, 28, 87, 125, 222 Louis Vuitton, 35–37, 99 Keitel, Harvey, 171 luxury boom, 36 Kentucky Fried Chicken (KFC), 48, 49, 114 luxury brands, 156 Kenzo, 66 luxury brands, role in evolution Kering (formerly PPR), 46, 65, 67, 148, of, 98, 99 219, 220 luxury demand in, 32, 35, 36 Ketel One, 38, 168 luxury executives, 89 Kiehl’s, 84 luxury market compared to China, 32, Kim, Sung-Joo, 158 34–37, 52, 178, 189, 190, 196 Korea. See South Korea luxury market growth, 36 “Korean wave,” 102 offi ce ladies (OLs), 35–37 Korn Ferry, 89 “parasite singles,” 35, 52, 99 Kowloon, 10, 12, 14, 15. See also Tsim Sha Prada, 99 Tsui (TST) district of Hong Kong price points, 78 Kusama, Yasoi, 99 and sophisticated simplicity, 214 Taiwan, Japanese travel to, 130 La Mer, 138, 155 Tiff any, 99 La Prairie, 138, 155 Tod’s, 99 Lagerfeld, Karl, 123 travel to, 127 Lai, Jimmy, 34 YUMMIES (young urban males), 35 L’Ambroisie, 123 Jason Wu, 144 Lancel, 100 Jay Z, 170 Lancôme, 155 Jewellery. See also specifi c brands Landmark mall, 13, 120 brand awareness in China, 97 Lane Crawford, 11, 28, 149 Chinese jewellers, 148–151 Lange & Sohne, 65 Chinese market, 27, 97, 194, 195 Laos, 126, 127 as female-driven market, 26, 65, 66 Las Vegas Sands, 119 global brands, 65 Lativ, 189 and “going lifestyle,” 86–88 Lawrence, Jennifer, 27 Hong Kong stores, 10, 11 Leather goods, 79, 80. See also specifi c brands in India, 187 Lee Gardens, 12 Indian market, 187, 188 LG Chaebol, 154 Japanese brands, 156 LG H&H, 81, 154, 155 Macau luxury market, 123 Li, Calvin (avatar) merger and acquisition activity, and Chinese brands, 145, 149 65, 66 and Daks brand, 81 price mark-ups in China, 113 described, xix, xx quality assurance, 114 and fi tting in, 165 and trading up, 41–43 and luxury brands as measure of success, 37 watches. See Watches Starbucks, views on, 45 Jimmy Choo, 222 Li, Ka-Shing, 6, 34 Jo Malone, 84 Li Ning, 145 Johnnie Walker, 38–40 Living It Up (Twitchell), 32, 43 Jospin, Lionel, 108 LMH (Les Manufactures Horlogères), 65 Jurlique, 84 L’Occitane, 84–86, 99, 147 JW Marriott, 122 Loewe, 220

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Lombardi, Vince, 197 Luxury brand companies. See also specifi c Longines, 20, 179, 221 companies Lopez, Jennifer (J Lo), 172 cash surpluses, 63 L’Oréal group, 84, 147, 154 family controlled, 63, 64 Loro Piana, 28, 29, 66, 68, 212 mono-brand companies, 67, 221–223 Lotte Department store (Seoul, “Luxury for all,” 43, 44 South Korea), 127, 128, 157 Luxury sales by nationality versus by Lotte Duty Free, 127, 136, 202 country, 184, 185 Louis Quatorze, 80, 81, 158 LVMC countries, 126. See also individual Louis Vuitton countries annual sales, 62 LVMH (Moët Hennessy Louis Vuitton), 39, and art of storytelling, 77 46, 65–67, 82, 98, 121, 122, 185, 220 in Australia, 134 brand credibility, 62 M+ Museum, 15 brand evolution, 100 Ma, Ke, 143 celebrity endorsements, 44, 45, 172 Ma, Tiff any (avatar) in China, 37, 96, 199 and Chinese brands, 145 executive changes at, 87 described, xxi, xxii and French paradox, 55 Louis Vuitton, views on, 35, 36 and gift giving, 22, 24, 201 Qeelin, views on, 148 and global fi nancial crisis, impact of, 81, 82 snack and food purchases, 146 “going lifestyle,” 86–88 and value for money, 179 growth, 68, 86 Ma, Ying-jeou, 131 history of, 62 Macau in Hong Kong, 11, 12 anti-corruption campaign, 23 in Indonesia, 133, 192 development in, 15, 122, 123 Japanese market, 35–37 as entertainment center, 15, 116, 117, in Korea, 58, 80, 81 119, 120 in Las Vegas, 120 gaming in, 15, 117–124 in Macau, 120 history of, 118 and mass-lux pyramid, 46 luxury retail in, 29, 116, 120–123 in New York, 64, 120 Special Administrative Region, 5, 118 in New Zealand, 134, 164 travel to, 15, 109, 116, 118, 119 operating margin, 63 watches, market for, 138 as part of LVMH, 66, 220 Maje, 13 price diff erential in China, 175 Malaysia, 133 queues, 7 Male domination of Chinese luxury retail stores, 87 market, 16–18, 26, 27, 30, 32, 36, 52 in Singapore, 58, 129 Malkin, Scott, 177 in Tokyo, 58 Mandarin Oriental, 131 Louis XIII casino, 123 Mao, Zedong, 5, 33, 34, 119 Lovcat, 158 Mapletree, 12 Luggage, 41, 103–106. See alsoo specifi c Marc Jacobs, 87, 220 brands Di Marco, Patrizio, 68–73 Luis, Victor, 87 Marina Bay Sands (Singapore), 129 Luk Fook, 150 Maslow, Abraham, xxiv, 43 Luxury, defi ning, 62, 63, 213, 214 Maslow’s hierarchy of needs, xxiv, 43, 215–217

bind 235 16 July 2014 10:15 PM 236 ind e x

Mass-lux pyramid, xxiv-xxviii, xix, 43–47, New Zealand, 133, 134, 164 52, 62, 66, 215 Next Media, 34 Mass-tige marketing, 55, 158 Ngee Ann city shopping center MCM, 80, 157–159 (Singapore), 129 Medical tourism, 203 Nida, Grace, 89–91 Melbourne Plaza, 14 Nike, 148, 152, 153, 187, 204, 206 Melco Crown, 119 Mergers and acquisitions (M&A), 64–68 Oldenburg, Ray, 47 Metrocity, 158 Oldman, Gary, 171 MGM, 119 Olympikus, 187 Michael Kors, 68, 81, 87, 179, 188, 222 Omega, 20, 96, 221 Middle class One Central shopping mall (Macau), in Brazil, 186, 187, 192 120, 121 in China, xxv-xxviii, 51, 60–62, 68, 73 “One country, two systems” policy, 5, 7, in Indonesia, 192 34, 118 as luxury consumers, 38, 43 One-child policy, 36, 37 and premiumisation, 49 Online shopping, 189, 200, 206, 208 in United States, 188 Origins, 85 Middle Kingdom, 183, 184 Orion, 146 “Middle” luxury market during global Oshadai, 149 fi nancial crisis, 81, 82, 84, 103 Osim, 26 Mido, 221 Outlet stores, 168, 176, 177 Mikimoto, 156 Out-of-home advertising (billboards), 27 Ming Yao department store, 190 Missha, 81 Pacifi c Place shopping mall, 12, 133, 192 Missoni, 223 Packaged individual travellers (PITs), 139 Mitra Adiperkasa, 192 Pandora, 14 Miu Miu, 14, 27, 134, 181–182, 222 Panerai, 65, 221 Modern Creation München (MCM), 80, Paragon mall (Singapore), 129 157–159 Parfums Christian Dior, 220 Moët & Chandon, 220 Paris, France. See also France Moët Hennessy, 66, 220 Champs-Elysées versus Hong Kong Moncler, 8, 13, 28–29, 97–99, 223 luxury shopping, 7, 8 Mono-brand companies, 67, 221–223 Chinese travel to, 9, 113, 124, 125 Montblanc, 221 “le troisième bureau” (the third offi ce), Mulberry, 125 47 Murakami, Haruki, 75 Parisian, 123 Murakami, Takashi, 99 Parker, Tim, 103–106 Myanmar, 126, 127 Patek Philippe, 67, 150, 174, 223 Patrón Tequila, 39, 41 Nature Republic, 81 Patten, Chris, 5 Neo concept (adidas), 205, 206 Pearl River Delta, 4, 15, 34, 124 Nespresso, 28 Peking Road, 10 Net-a-Porter, 208 Penalty, 187 Networking and business relationships in Peng, Liyuan, 143, 144 China, 19. See also Guanxi Pernod Ricard, 39, 41, 49–51 New Balance, 152 Perrier-Jouët Champagne, 51

bind 236 16 July 2014 10:15 PM Index 237

Piaget, 10 Rado, 20, 221 Pierre Cardin, 190 Rain, 159 Pierre Hermé, 13, 28 Rainero, Pierre, 192–195 Pinault family, 65 Ralph Lauren, 99, 100, 176, 223 Pitt, Brad, 171 RAOUL, 14 Plaza Indonesia shopping mall, 192 RDM, 176 Plaza Senayan shopping mall, 192 Real property, purchase of by luxury , 65 brands, 64 Pop culture, infl uence of, 170, 171 Recruitment potential in China, 60–62 Pop Goes Korea (Russell), 101 Reebok, 152 Porter, Michael, 79 Regulatory issues in China, 147 Porter’s fi ve forces, 79, 80 Rémy Cointreau, 172 Prada Renaud, Serge, 55 about, 222 RenRen, 154 adaptability of, 67 Republic of China (ROC), 33. See alsooTaiwan in Australia, 134 Retail locations celebrity endorsements, 171 competition for, 200, 201 Chinese market, 178 freestanding, 199 in Cotai, 123 and group travel versus individual and evolution of luxury brands, 99 shoppers, 98, 106 “fl ash collections,” 205 Gucci, 70, 72 in Hong Kong, 7, 13 Hong Kong, 8–16, 30, 97 in Japan, 99 India, 187 London store, 64 Indonesia, 133 mono-brand, 67 Japan, 189 Saint Petersburg store, 64 L’Occitane, 84–86 in South Korea, 191 Macau, 29, 120–123 value-for-money, 68, 81 outlet stores, 168, 176, 177 Prada, Miuccia, 181 purchase of, 64 Premium “core” luxury items, 44, 46 “retail theater,” 207 Premiumisation (trading up), 31, 38–52, 59, Singapore, 29, 129, 130 166, 168, 170, 174, 187 South Korea, 127, 128 Pricing Starbucks, 48 in China, 78, 79, 96, 97, 103, 104, 112, Taiwan, 111, 131–132, 190 113, 174, 175 ubiquity, 58, 97, 106, 164 in Europe, 125 unique, 58 and premiumisation, 38 “Retail Theater,” 207 price gap in Asia, 78, 79, 96, 97, 103, Return on invested capital (ROIC), 63 104, 175 Revlon, 147 and scarcity, 38–40 Ricard, Alexandre, 49–51 Product cycles, 204–206 Richemont group, 10, 14, 32, 46, 63–65, 100, Psy, 102, 202 114, 115, 148, 166, 167, 180, 220–222 , 152, 182, 206, 220 Ritz Carlton, 122 Putonghua, 6, 131, 184 Roger Vivier, 222 Rolex, 20, 62, 67, 68, 96, 222 Qeelin, 65, 148 Rosin, Hanna, 27 Qu, Yuan, 25 Rum, 41, 50

bind 237 16 July 2014 10:15 PM 238 ind e x

Rupert, Johann (“sage of Stellenbosch”), Slilmane, Hedi, 201 114, 115 Smirnoff , 38 Rupert family, 65 Smythson, 125 Russell, Mark James, 101 Social media, 96, 100, 104, 154, 175 Russell Street, 11 Social status, 18, 19, 38–40, 43, 50, 110, Russia, 186, 187, 196, 206, 211 113, 117, 168, 174, 191, 214. See also Premiumisation (trading up) Sabon, 85 Socialist Market Economy, 34 Saem, 81 Soft goods, 22 Saint Laurent (Yves Saint Laurent), 127, Sogo department store 201, 219, 220 Hong Kong, 11 Same same but diff erent, 25, 26 Taiwan, 190 Samsonite Group, 103–106, 127 South Korea Samsonite Red, 127 Chinese travel to, 185 Samsung, 152, 200 Chinese versus Japanese consumers, 128 Sandro, 13 and consumer insight, 154, 155 Sands Cotai, 121, 123 cosmetic stores, 80, 81 Sankuanz, 149 cosmetic surgery as competition for SARS (severe acute respiratory luxury market, 202, 203 syndrome), 5, 6 duty-free shopping, 127, 128 SaSa, 11 local Korean brands, 79–81, 102, 127, 128 Scarcity local substitute products, 79–81 approach to defi ning luxury, 62 Louis Vuitton in, 58, 80, 81 and French paradox, 55–57 luxury market compared to China, and pricing, 38–40 189–191, 196 Scotch whiskey, 39, 41, 46, 50, 51, 99, 117, luxury market in, 127–129 138, 170, 187, 220 parallel imports, 78 Scott, Ridley, 200 pop culture, 101, 102 Seliger, Jonathan, 199 role of in consumer trends, 100–102, 106 Sentosa Island, Singapore, 129 shopping tour programs, 128 Seoul TouchUp, 203 snacks and food items, 146 Sephora, 84, 220 ubiquity, eff ect of on consumers, 58 Seydoux, Léa, 27 wedding gifts, luxury items for, 58 Shang Xia, 149 Special Administrative Regions, 5. See also Shanghai, China, 15, 97 Hong Kong; Macau Shanghai Tang, 14, 148 Special Economic Zones, 15n19, 34, Shenzhen, China, 15, 15n19, 34, 119, 226 118–119 Shilla Duty Free (Seoul, South Korea), Sporting goods, 152, 153 127, 128 Starbucks, 45, 47, 48, 198 Shinawatra, Thaksin, 133 Start with Why (Sinek), 151 Shinkong Mitsukoshi, 189 Stella, 189 Simon Property group, 176 Storytelling, art of, 76, 77, 91, 102 Simplicity, 214–217 Strategic partnerships, 207, 208 Sinek, Simon, 151, 152, 200 Sulwhasoo, 102, 155 Singapore, 29, 129, 130, 189, 191 Sung Hun Kai Properties, 13 SJM, 123 Sungjoo Group, 158, 159 Skinfood, 81, 102 Super-premium luxury items, 44, 46

bind 238 16 July 2014 10:15 PM Index 239

Swarovski, 182 Manhattan store, 64 Swatch Group, 46, 65, 179, 221 United States market, 188 Swire Properties, 12 “Tiger Cubs,” 133–135, 185 SWOT analysis, 79 Times Square shopping center, 10, 11 Tinglish, 25 Tag Heuer, 44, 171, 180, 220 Tingyi, 146, 189 Taipei 101, 15, 111, 131, 132, 190 Tissot, 179, 221 Taiwan T-mall, 208 Chinese travel to, 130, 131 Tod’s, 99, 189, 222 cultural ties to China, 131 Tom Ford, 28 gaming, 124 Too Cool for School, 81 history of, 33 Toro, Benicio del, 171 Japanese travel to, 130 Tory Burch, 28, 87, 125, 179, 222 luxury market compared to China, 189, Tourists International, 137. See also DFS 190, 196 (Duty Free Shoppers) luxury retail in, 15, 110, 111, Towngas, 13 130–132, 190 Trading down, 38, 84, 174 National Museum, 131 Trading up. See Premiumisation (trading up) success of and Chinese entrepreneur Travel emigres, 34 aff ordability, 111, 112 Taipei 101, 15, 111, 131, 132, 190 and Chinese brand awareness, 96, 97, 106 tourist attractions, 111 Chinese statistics on, 226 travel to, 110, 111 Chinese travelers, increase in, 115, 116, 137 Xinyi district, 131 Chinese travelers, luxury sales to, 184, 185 Takashimaya, 129 Chinese travelers, targeting, 103–106 Tasaki, 156 to Europe, 112, 113, 116, 124–126 Taxes group travel, 6, 9, 10, 98, 106, 128, 139 consumption tax (China), 23, 24, 79, 113 to Hong Kong, 6, 7, 9, 10, 16, 29, 30, import duties, 40, 78, 104, 112, 113, 133, 109, 112, 113, 116 186, 187, 192 industry growth, 13 refund of (Global Blue), 112, 116, 175 to Japan, 127 Thailand, 133 and Korean brands, 102 value-added tax (VAT), 16, 78, 79, luxury purchases abroad, reasons for, 112, 113 110–114 Te quila, 39–41, 50 to Macau, 15, 109, 113, 116, 118, 119 Thailand, 116, 126, 133, 185, 196 to New Zealand, 133, 134 Thomas Pink, 60 non-locals, sales to, 97, 98, 106 Tiff any “one city” illusion, 97, 106. See also about, 222 Ubiquity of luxury brands aff ordable luxury, 45 restrictions in China, 109 Asian market, 65 retail operators, 136, 137 brand evolution, 100 and sales to locals, 97 Chinese jewellers compared, 150 shopping as reason for, 96–98 and consumer trust, 43 to Singapore, 116, 126, 129, 130 and evolution of luxury brands, 99 to South Korea, 116, 126–129, 202, 203 and female-driven market, 27 to Taiwan, 116, 126, 130–132 in Japan, 99 to Thailand, 116

bind 239 16 July 2014 10:15 PM 240 ind e x

Travel (continued ) Hispanic community, infl uence of, to “Tiger Cub” countries, 133–135 172, 173 tour operators, 139 immigration, infl uence of, 171–173 tourists, luxury market, 184, 185 luxury brands, role in evolution of, to United States, 111, 113, 135, 140, 98–100 1166 luxury market, 135, 166, 168, 188 Trust middle class, 174 and brand awareness, 43 social and demographic trends, 173, Chinese brands, 147 174, 182 global brands, 41 trading up and trading down, 174 and premiumisation, 38, 40, 41, 49 travel to, 111, 135 Tsim Sha Tsui (TST) district of Hong value-driven consumers, 166–168, 173, Kong, 7, 8, 10, 12, 13, 18 182, 199, 221 Tumi, 41 visa processing, 111, 135 Twitchell, James, 32, 43, 44 Unqualifi ed shoppers, 111, 132 Upselling, 60 Ubiquity of luxury brands and approaches to defi ning luxury, Vacheron Constantin, 20, 62 62, 63 Value for money and Chinese consumers, 59–62, 73 and American consumers, 166–168, 173, countering, 57–59 182, 199, 221 and French paradox, 53, 55–57, 73 Chinese brands, 145, 153 Gucci, 68–73 Chinese consumers, 166, 175–179, 182 mergers and acquisitions as means of Coach, 45, 68, 81, 179, 199, 221 countering, 64–68 and luxury consumption during slow “one city” illusion, 97, 106 economy, 81, 82 product ubiquity, 58, 59 Michael Kors, 68, 81, 179 retail ubiquity, 58, 97, 106, 164 outlet stores, 176, 177 U-curve principle, 55–57 Prada, 68, 81, 178 Ultra high end and bespoke luxury items, Tory Burch, 179 44, 46, 47 Value Retail group, 176–177 Unbranded products, 41 Value-added tax (VAT), 16, 78, 79, 112, 113 Union Pay, 116 Van Cleef & Arpels, 65, 221 UniPresident, 189 Venetian (Macau), 121, 123 Uniqlo, 148, 190, 201, 206 Versace, 223 United Kingdom, 185 Veuve Clicquot, 220 United States Vevers, Stuart, 87 Asian Americans, 173 Vietnam, 126, 133, 139, 196 attitudes toward luxury, 166, 167 Visas cosmetic surgery as competition for China, 109, 133 luxury market, 202 Thailand, 133 demographics, 171, 173, 174, 188 United States, 111, 135 as emerging luxury market, 166, 168, 169 Vodka, 38, 41, 45, 50, 51, 168, 170, 187 entertainment industry, infl uence of, Vogue China (magazine), 149 169–171 entitlement spirit, 174 W Hotel, 131 guilt factor, 166, 167, 172, 174, 191 Waltz, Christoph, 171

bind 240 16 July 2014 10:15 PM Index 241

Wang, Lewis (avatar) Wilde, Oscar, 163 and Chinese brands, 145 Wine and spirits industry, 38–41, 43, 49–51, described, xx, xxi 168. See also specifi c brands; specifi c and discretionary spending, 198 liquors and fi tting in, 165 Women as drivers of Chinese luxury gambling, views on, 117 market, 26, 27, 65, 66, 97 and health and safety issues with Chinese Woods, Tiger, 171 products, 147 WUYONG, 143 Hong Kong, travel to, 10 Wynn, 119–121, 123 Korean pop culture, infl uence of, 101 Wynn Esplanade (Macau), 120, 121 as part of male-dominated luxury market, 18 Xi, Jinping, 20–21, 144 trust and premiumsation, 43 Xi administration Wang, Uma, 149 anti-corruption policy, 19–26, 30, WantWant, 146, 189 41, 124 Watches. See also specifi c brands Eight Musts (Xi8), xxx, 21 consumption tax (China), 24 and gift giving, 20, 22, 23, 25, 26 Yamada, Masahiro, 35 and government offi cials, 22, 23 Yao, Ming, 180 importance of in China, 138, 195 Yue Yuen, 189 Macau luxury market, 123 YUMMIES (young urban males), 26, 191 and Porter’s fi ve forces, 79, 80 and trend toward female-driven markets, Zara, 28, 148, 190, 201, 204, 206 26, 27 Zegna, 29, 199 WeChat, 96, 175, 208 Zhao, Wuji, 157 Weibo, 154 Zhong Xiao East Road, 190 Weighted average cost of capital Zhongshan North Road, 190 (WACC), 63 Zhou, Hermes (avatar) Weixin, 175 and Chinese brands, 145, 149 West Kowloon Cultural District, 15 described, xxiii, xxiv Wharf Holdings Limited, 10 gifts, 111, 112 What Chinese Wantt (Doctoroff ), 32 Hong Kong, shopping in, 13 What I Talk about When I Talk about Running luxury purchases abroad, reasons (Murakami), 75 for, 110 “Why” versus “what” for luxury purchases, Shanghai Tang, views on, 148 151–157, 198 and unique retail locations, 58

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