1、The China Luxury PlaybookAssembling the brand growth puzzle in the new Chinese Luxury market realityJanuary 2024Authors:Thomas Piachaud Max PeiroThe China Luxury Playbook02RE-HUBExecutive Summary Shifting market dynamics have led the Chinese luxury market into a period of relative uncertainty.In thi

2、s new uncharted territory,there is still growth to be obtained,but with new challenges to overcome to achieve it.A shift in growth mindset is required,focusing on brand optimization to ensure the long-term sustainable growth of brands in the Chinese market.As part of this shift,we propose a 5+1 play

3、book that focuses on five key areas that brands must address to drive favourable growth in the Chinese market.Wholesale Excellence-wholesale practices during COVID have led to a confusing consumer environment when it comes to China product availability and pricing.A focus on creating wholesale excel

4、lence which includes assessing wholesale partners,pricing control and product traceability is needed.Discount Management-while discounting is inevitably a key driver of sales for many brands,stricter management of the width and depth of discounting must be maintained in order to build equity and avo

5、id a race to the bottom and eventual corrosion of brand value.Product Pillars-consolidating and investing behind specific product pillars is a key ingredient to mitigate risks associated with either heavy dependence on a few products or a sub-optimal and less consolidated approach through rapid prod

6、uct innovation.Channel Expansion-the pandemic period saw a rapid expansion of the quantity of sales channels in China.Moving forward a focus on quality over quantity will help ensure a healthy ROI on expansion investments.Differentiation&Desirability-a reassessment of the localized interpretation of