Luxury Brands Expansion in China
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Göteborgs universitets publikationer - e-publicering och e-arkiv Luxury brand’s expansion in China - Opportunities and possible strategies Bachelor thesis in International Business Spring 2011 Author: Dang, Xi-Er 890324-5085 Wan, Jessica 880226-4369 Tutor: Harald Dolles Acknowledgement This bachelor thesis has been written at the department International Business at the School of Business, Economics and Law at the University of Gothenburg. In the time frame of ten weeks, we have gained great knowledge about the luxury industry in general and luxury brands operating in China, in particular. Additionally, we have acquired a deeper understanding on how to conduct an academic research. We would like to thank our tutor Harald Dolles who has been of great help with assistance and guidance along the construction of our thesis. School of Business, Economics and Law, June 2011 ____________________________ ______________________________ Jessica Wan Xi-Er Dang 2 Abstract Since the economic reform of China in 1978, the country has been under a process of industrialization and modernization. The average household income has risen, where the proportion of middle-class households, earning more than RMB 3 500 per month, has increased. In addition, there is a great share of the „China elite‟, which consists of the upper middle-class and the very wealthy. Due to China‟s enormous market of 1.3 billion people and the growth of wealthier households, the country has become the largest market for luxury. Many luxury brands are established in the market today, some with a greater presence, others more limited.
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