The Chinese market has seen a full array of communication tools. In the late '80s, for example, we used a mixture of fashion shows and Government invitations to position Montagut (a French brand -- China is now its main market worldwide), and in the early '90s, when I was working on brands such as Christian Dior and Louis Vuitton, media relations/education and celebrity endorsement came to the fore.
As a wealthier crowd began to emerge to China -- in 2004, the China Brand Strategy Association claimed that some 175 million, or 13.5 percent of the population, could afford luxury brands -- the focus moved away from brand awareness and towards real consumer outreach. Product ranges were expanded to include larger lifestyle products, from fashion and cars to bank accounts. The skills that we honed then were to help us build luxury brands equity for brands such as Hermès, Audi and Citibank.
China has now reached a point where brand differentiation is key. These days, the Chinese market is flooded with luxury brands, unfortunately many of them commoditising their communication and using the same message, the same media and guest lists, irrespective of whether they are promoting a young fashion line or launching a top-line jewellery line. While we still use the tools honed on campaigns during the market's infancy, we have also adapted to reflect changes in consumer behaviour. Media content, for example, needs to be better substantiated. Critically, media programmes need to be more creative too -- last year, for example, we created the concept of a romantic reality TV show, a first in China, to promote the diamond ring for the Diamond Trading Company.
Likewise, consumer access to international information such as fashion shows, means that campaigns need to reveal true fashion leadership and reflect international trends. Celebrity endorsement needs to be more credible and better tied-in with the brand. Word-of-mouth is also an increasingly important tool, leading to the creation of more mini-events targeted at market influencers. Online marketing is also beginning to have a significant impact.
Sponsorship has also started to become a valuable platform for luxury brands to differentiate brand values and reach target customers. One of the advantages of sponsorship is that a brand can also leverage other brands' equity, such as Emirates Airlines co-sponsoring the BMW Asia Open in Shanghai. These PR tools need to become mainstream in luxury brands' outreach, helping to communicate the real DNA of the brand to ensure its long-term success in the fastest expanding luxury market in the world.
Jean-Michel Dumont, chairman and general manager, Ruder Finn China