Savoring luxury in a smart way
- Source: The Global Times
- [20:01 May 31 2009]
- Comments
By William Chen
Illustration: Liu Rui
Old Beijing courtyards arguably have become one of the most sought-after luxury items in China. In Xuanwu district, one whole block of courtyards went through meticulous renovation by developers. With a glittering new look, modern amenities and an elevated price tag of 10 million yuan ($1.4 million) per courtyard, they welcomed their new owners, mostly nouveau riche from the energy sector and top foreign executives.
The original residents were priced out – they simply couldn’t afford it. And they might not have wanted to stay there anyway. The fun of the good old days is gone – neighborly chitchats, drop-in meals, chirping caged birds, among others. In lieu, there is a modern security system for each courtyard and layers of security for the whole compound. Such luxury courtyards just symbolize status and wealth, with no roots in the traditional courtyard values, cultures and emotions. They are just empty shells and architectural mummies.
In the luxury market, such pities and ironies are in no short supply. One might easily conclude that Chinese luxury consumption is at a very immature stage, despite all the media ravings of China becoming one of the world’s major luxury markets. Some guzzle Hennessey XO from the bottle like drinking tap water. Some snatch up whatever bags are available in luxury brands shops during sales, in total disregard to whether they actually need them. Then there are gold mooncakes costing 30,000 yuan ($ 4,393) a pack whose only purpose is gift-giving. “I have it and I can afford it” is the message that some buyers or possessors of luxury goods want to send to other people. Forget about brand culture, fine taste and a delicate sense of well-being.
In the fashion business as in many others, luxury brands have their positioning and target market but will not censor the customers; that is, all are welcome to buy.
The intricate and interactive relationship between customers and the brand can actually be summed up in one statement: Do you wear the garment, or does the garment wear you? If the garment is right for you, you should feel “yourself” in all aspects. But if it’s not, the damage is mutual – you become a “wrong rack” for the garment and the garment wreaks havoc on your image and personality.
Unfortunately, such basic rules haven’t taken roots in China. Some still live happily and embrace the preposterous thinking that the more expensive the outfit, the more branding power he or she commands.
That makes me think of a Western friend who is a fashion designer by education. He’s always a la mode – greatly matched clothes with shoes and accessories. He has the income to shop in luxury stores, but he rarely does so. Instead, he has clothing made by Chinese tailors when he travels here. He’s pleased with the great tailoring, great quality, great fabric, and great price. That’s smart luxury – knowing what you need and getting what you want, without compromising on the value and quality. And quite a big proportion of expatriates do the same in China.
When people have the financial means, it’s natural and understandable that some of them will consume what they feel is fit for them. For some, luxury items and the associated experiences and emotions are among the best the world can offer.
The luxury market is a symbol of national wealth to some extent. If China is so economically advanced that ordinary Chinese consumers can afford to have a taste of luxury goods, we shouldn’t feel bad about ourselves. By then, consumers will be sophisticated enough to decide if they need luxury goods and what they need.
Until that day comes, objective views of the luxury market in China should be advocated and restored. Whatever big luxury sales figure and growth rate is spun up for China will be decimated to a peanut-size on a per capita basis. Thus, the figures are misleading. The number of Chinese luxury consumers is far less than what people think.
The invisible hand of the market will guide the luxury brands to open stores – or not. As for ordinary consumers, keep your feet on the ground. Ninety-nine percent of Chinese are not in a position to raise their arms and yell triumphantly: “Yeah, I’m part of the game!” My suggestion is, don’t abandon your dreams for luxury goods, if you have any. Meanwhile, why not use the corner tailor shop to be smart and look smart?
The author is general manager of the China subsidiary of a Danish company and a freelance writer