China with a huge population of 1.3 billion opened its market to economic reform following the death of China with a huge population of 1.3 billion opened its market to economic reform following the death of Mao Zedong in 1978 and the subsequent accession to power by Deng Xiaoping. Based on the abundance of unskilled labor in the export of cheap goods and the inflow of foreign investment, its development model has long been considered as ‘primitive', characteristic of a country's backlog.
Not only does China continue to be exceptional, but in the euphoria of globalization and in a short duration, it has become a phenomenal export power, and has taken the lead in world export of textiles and clothing, shoes, electronics and toys. Its products have invaded the world. This caused a spectacular export growth, which for two decades, increased by more than 9% annually. This boom has also led to millions of homes experiencing increase in purchasing power and living standards, and has fostered the rise of a genuine Chinese capitalism.
The enormous amount of work undertaken by the state to modernize the country and a new fervor consuming the Chinese has added a new dimension to the economy in a short time. China, which was intimidating as an invasive exporting power, has now become a huge importer whose greed seems insatiable. According to the World Trade Organization in 2001, China is now one of the largest economies in the world. It is important to understand the other Chinese boom, the power consumption of a market of over one billion inhabitants including its impact on one of the important industries of the French economy.
We will, initially, assess various aspects of the luxury market in this country to understand how major French brands have been able to take over the market since the 1980s. Then we will see the capacity of the Chinese market including consumption habits and modes of distribution.
Few nations have changed as quickly and as dramatically as China since the seventies. Having radically liberalized its economy, the most populous country in the world has abandoned the export of low-end products for the benefit of high technology products, while promoting a dynamic private sector and has attracted more than $53 billion in investments (FDI). The country has turned into a real export machine: Total exports of the country increased eightfold between 1990 and 2003. China's share in world exports rose by 6% in 2003, against 4% in 2000. In 2003, China accounted for 16% of global economic growth, ranking second behind the United States. There is therefore no doubt that the emergence of China as a major economic power will be one of the main challenges faced by the world leaders in the coming decades.
With its spectacular progress in high technology, transport and communication systems, China will play a prominent role during the next phase of growth in the global economy. The authority now in place in Beijing is relatively ‘soft' and enjoys a growing diplomatic influence that allows China to increase its economic and political power. China is also better prepared to become a world leader, as its new elite is no longer isolated from the Western world, as was the case of previous Chinese leaders. numerous.
[...] We will, initially, assess various aspects of the luxury market in this country to understand how major French brands have been able to penetrate the market since the 1980s. Then we will see the potential of the Chinese market including consumption habits and modes of distribution. China: The new giant of the global economy China on the path of economic liberalization Few nations have changed as quickly and as dramatically as China since the seventies. Having radically liberalized its economy, the most populous country in the world has abandoned the export of low-end products for the benefit of high technology products, while promoting a dynamic private sector and has attracted more than $53 billion investment (FDI). [...]
[...] Researchers at the Australian National University have suggested that to reduce rural unemployment, China should also promote micro-credit institutions in rural areas so that farmers' savings can be used for local development. These areas are extremely underserved markets, particularly since 1997, when, as part of a reform plan and limiting losses, almost all branches of public banks have been closed. This decision has left local people with no means but borrowing, since the rural credit cooperatives which have continued to operate were indebted and very appropriate for an activity like that of retail lending. [...]
[...] French products have an image of luxury and refinement in the eyes of Chinese to the point where they sometimes seem unaffordable. The premium is less than 15% of furniture consumption in China and the brand now matters very little in the choice of the Chinese, who are not yet familiar with Western brands of furniture. However, this market is expanding with the arrival of the "new rich" who sometimes have several residences, and appeal to architects and interior designers. [...]
[...] The foreign supply of ready-to-wear of luxury and upscale French Brands Foreign Trademarks Ready-to-wear CELINE, CHANEL, HUGO BOSS, BALENCIAGA, CHRISTIAN LACROIX, JP BURBERRY, ESCADA, GAULTIER, GIVENCHY, SALVATORE FERRAGAMO, HERMES, KENZO, GIANFRANCO FERRE, LAGERFELD, LEONARD, GUCCI, PRADA, LAUREL, NINA RICCI, VALENTINO, VERSACE, JeanLouis SCHERRER, WOLFORD, DOLCE & LOUIS VUITTON, GABBANA, GUESS, COURREGES, Sonia MOSCHINO, TRUSSARDI, Rykiel, Cacharel, MAX & CO, Byblos, Martine Sitbon, Fendi, Prada AGATHA Christophe Lemaire, RUIZ DE LA CHLOE, UNGARO, PIERRE BALMAIN , CASTELBAJAC, MANOUKIAN ALAIN GEORGES RECH Ready-to-wear Lanvin, YSL, Givenchy, CERRUTI, ARMANI, HUGO Kenzo, GUY LAROCHE, BOSS, DUNHILL, KENT & LAROCHE, LACOSTE, Curven, RALPH LAUREN, PIERRE CARDIN GUCCI, VERSACE, TOMMY HILFIGER, Paul & Shark, Aquascutum, MOSCHINO, DOLCE & GABBANA, GUESS, PORTS, Bossini, SMALTO, ZEGNA Lingerie NINA RICCI, CACHAREL, WOLFORD, CALVIN KLEIN, Chantal Thomass, FELINA, KUNERT, BARBARA, FOGAL, KENZO, CHRISTINA, CHRISTIES, GUY LAROCHE, PIERRE LILLY, Lormar, TERESA, CARDIN, NEYRET, TELENO, FOEMINA, TRIUMPH, Aubade, LEVANTE, Selmark LACOSTE, SONIA RYKIEL, Lise Charmel, Lejaby Kidswear SMALL COMPANY, Jacadi, NIKE KIDS OSH KOSH, Petit Bateau, Sonia FAMILIAR Rykiel, BABY DIOR, KENZO III) The demand for luxury products in the Chinese market General information on the Chinese population With nearly a quarter of the world population, China continues to promise to become the largest consumer market in the world. [...]
[...] The offer of luxury products by sector HBJO Sector: Timepieces, Jewelry, Opticals 1.1 ) The local supply Sector of watches: In 2000, approximately 80% of the 700 million watches produced in the world were from China or Hong Kong and more than 200 million clocks were produced there. China is also a subcontractor for clockworks. However, we must consider that this production is almost entirely positioned on the low end and does not target the same customers as the high end. [...]
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