Market For Luxury Brands Essay Assignment Paper
1. For the longest time, makers of luxury goods were devoting most of their energies to entering the Chinese market. Why do they seem less interested in the Chinese market now? Is the market saturated?
2. As alternatives to China, why are luxury brands interested in certain American cities? Isn’t the US a stagnant country and thus a stagnant market? Why or why not? Market For Luxury Brands Essay Assignment Paper
1.The decrease in interest of luxury brands in the Chinese market is not due to market saturation but rather a combination of factors. One reason is the Chinese government’s crackdown on corruption and conspicuous spending, which has decreased demand for luxury goods. Additionally, the growth of the middle class in China has slowed down, leading to less disposable income for luxury purchases. Lastly, the COVID-19 pandemic has affected the economy and consumer behavior in China, leading to decreased demand for luxury goods. However, the Chinese market remains important for luxury brands, and they are still investing in strategies to attract Chinese consumers, such as e-commerce and social media campaigns. 2.The US market remains an important market for luxury brands due to its large and affluent consumer base. While some cities in the US may be considered stagnant in terms of economic growth, others, such as New York, Los Angeles, and Miami, are still attractive to luxury brands due to their high levels of tourism and international exposure. Additionally, the rise of e-commerce has made it easier for luxury brands to reach US consumers regardless of their location. Finally, luxury brands are also attracted to the US market due to the country’s cultural influence and the ability to set global trends.
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