What are the French luxury products?

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FASHIONABLE

SUCCESS

HIGH SOCIAL STATUS

ELEGANTE RICH

FAMOUSHIGH CLASS

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How does the French luxury products influence the society of China?

i. A medium to show off the purchasing power in China– A change in the more individualistic value system

• One child policy → the 2nd generation of wealth

– A culture of “face”

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How does the French luxury products influence the society of China?

ii. A way to raise up their social status– The desire for enhancing their soical status and visibility by

an association with famous brand names.

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How does the French luxury products influence the society of China?

iii. A medium to impress others– An embedded gift-giving culture in China

• Chinese bureaucracies system, giving gifts to those who helped you to set up your business

• 28% of the luxury consumed for speacial gift for commercial relations.

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How does the Chinese culture influence the French luxury products?

i. Chinese culture in the French luxury goods

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How does the Chinese culture and values influence the French luxury products?

ii. Chinese Traditional values are added in the design of French luxury goods

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How does the French luxury product influence the Chinese culture?

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Luxury market in China 13.5% Chinese can afford

Traditional business elite New luxury shoppers

More than 2 billion a year Expected grow 10% annually until 2015

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How luxury goods trading between France and China change France? Earn more money: China is the 3rd of the

luxury goods consumer ranking Relocating their factories to China Seen China as dumpling ground for

out of season’s product More and more brands produce their

product base on the Chinese style

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How French luxury goods change China? More reliable on luxury goods Growth of GDP

Rise of COUNTERFEIT INDUSTRY

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French response…Price of luxury goods rise since the

demand rise Start to realize “China trap” and some refuse

to set up company in China e.g. Cartier

More cooperation with Chinae.g. Action Plan in 2009

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How counterfeit industry influence France? Loss of profit Damage in reputation Anti-counterfeit

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How counterfeit industry influence China

Undermined China’s “world factory” status

Loss of confidence of the foreign

Loss of confidence of the Chinese too

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Except counterfeit, there are still other economic interaction on luxury market Partnership and joint venture Cooperation in training Growth of domestic brands Spring board to other Asian market

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China’s open door policy open the door for the luxury industry

The luxury industry drive the interaction between western and Chinese since the new born wealthy class are unsophisticated in luxury lifestyle

However, the new born Chinese market has side effect on the traditional luxury industry

Thus, the interaction between France and China on the luxury market still continues…

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