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Part 1 research paper: luxury in china

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ISG PROGRAM BUSINESS & MANAGEMENT 3+2 - CAMPUS OF NANTES

[pic 1]

RESEARCH PAPER

CLARA BEAUFFRETON

LUXURY IN CHINA

Luxury sector in the current economy of china in booming

Memory directed by Mr Pascal Bernard

Supported in …

TABLE OF CONTENTS

INTRODUCTION        3

RECITAL        6

HISTORY OF THE MIDDLE KINGDOM        6

1. In a global dimension of its situation        7

a) At the economic level        7

b) From the financial point of view        8

c) On a social scale        8

2. Focus on the luxury Chinese culture        9

a) Historicity        9

b) Which fields is it ?        10

INTERVIEW        10

BIBLIOGRAPHY        11

Articles of periodicals        11

Books        13

ANNEX        14

        
THE ENTIRE SUMMARY:

RECITAL
HISTORY OF THE MIDDLE KINGDOM
1. The world's second-largest economic power 
a) Economic level

b) Finance level

c) Social level

2. Luxury culture in China

a) Historicity

b) Which fields it is ?


I. STRUCTURE OF THE MARKET
1. Market analysis
a) Supply

b) Demand

2. Regulation
a) Importation
b) Corruption
c)
Counterfeit

3. Luxury sector

a) Competitive analysis

b) Trend of the market

II. BEHAVIOUR OF ECONOMIC ACTOR

1. Consumers

a) National consumption

b) International consumption

2. Enterprises
a) International market

b) Development of Chinese luxury brand out of Asia

III. THE COMPANIES’S RESULTS

1. Chinese market

a) French case : Dior
b) Foreign case : Ermenegildo Zegna

2. Comparing with international market  
a) Chinese case in fashion: Shanghai Tang
b) Chinese case in hospitality : Shangri-La Hotel

INTRODUCTION

        “When China will wake up… the world will tremble” prophesied Napoleon.

Well awake for several years its development is only increasing despite a deceleration of its growth. And with it is a whole sector that is expanding: the luxury sector.

Having a particular attraction for Chinese culture since high school, thanks to my entourage and my curiosity, I have developed this growing desire to discover China.

From my first year in business school I had the opportunity to learn Chinese and thus have a first approach to the language and its culture.

In my third year of study, I travelled to China for a semester. I was lucky enough to go to Chengdu, a city in development some but still unrecognized. This journey was my first journey alone, the journey of a lifetime, the one that will mark you forever.

My desire to leave there was accentuated by my professional project which was coming to fruition.

Indeed, I want to establish a French luxury business in China after a career abroad and especially in China.

Moreover, my attraction for luxury is felt more and more in my professional experiences.

Following my semester in China, I completed an internship at a high-end boutique in a luxury hotel, the 5-star Fairmont Rey Juan Carlos.

Today, I have the chance to do my professional caesura from January, at the “Hotel Metropole Monte-Carlo” in Monaco, 5 stars also.

So I wanted to write a brief on these two subjects, China and luxury, to help me understand the Chinese luxury market for my professional project.

It is also a way for me to share what I discovered on the spot, what I learned during my travels in Mainland China.

First, the word China comes from the Qin dynasty. In the Middle Ages, the country is known as Cathay, name given by Marco Polo. Today "Zhongguo" or Middle-earth symbolizes the idea of ​​balance. We will be interested in the study of Mainland China, in comparison with Hong Kong, Macao (two special administrative regions) and Asian countries such as Japan and South Korea where the luxury sector is important.

Then, the notion of luxury is explained by the fact that a product must have a strong artistic content, be the result of an expertise and a confirmed creative talent, and of course be present on the international scene. Also, the selective and exclusive character of a luxury brand must be predominant. The choice of retailers is rigorous, items are only sold in exclusive boutiques or in department stores and prestigious multi-brand boutiques. Whenever a fashion brand that is creative in terms of concepts and products, which has different collections for all seasons, and which arouses consumer interest, succeeds in making classic models that become Permanent collection then it passes from the status of fashion brand to that of luxury brand.

In this brief we will study the following sectors of activity:

- Luxury ready-to-wear for women and men

- The jewellery and luxury watch segment, a very important sector in China

- Perfumes and cosmetics, despite relatively affordable price levels

- Fashion accessories such as ready-to-wear accessories such as leather goods, belts, glasses, hats ...

We will not go directly into our study, the wine and spirits sector, as well as luxury automobiles, luxury tourism and wealth management, although we will refer to it in the preamble in order to support our arguments by the following.

...

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