xinjomecblog

I still remember the first time when Howard talked about China, he showed us a big photo of a high street in
Shanghai, where people crowded into shops and were crazy about shopping. He said this was his first impression of
China: shopping.  

Undoubtedly it is good news for businessmen all over the world. In particular, the increasing wealth of
China’s middle class has created growing demand for luxury goods. Recently, Salvatore Ferragamo, the Italian luxury goods group, has been preparing to explore the Chinese market further with his “Made in
Italy” campaign.

I think this strategy may be a little bit late It might have been successful two years ago. But now, both the economic and social environment have changed.

First of all, “Made in
China” does not always mean cheap prices and low quality anymore. Local brands and manufacturers are being more competitive with improved techniques and higher quality standards. Chinese consumers are gradually changing their attitude towards their own products. A great many local brands have won people’s loyalty.

Secondly, many luxury brands have moved some of their factories to
China. Perhaps the most recent one is Burberry. I believe that when people can fully accept the fact that Chinese manufacturers are capable of making luxury goods, they will not be interested in foreign products that much. “Made in
Italy” will not have a great appeal. And its higher production costs could weaken its competitive ability when meeting “Made in
China” in the market place. 

Last but not least, the stronger social consciousness has made lots of Chinese start to support local products and local industries. This is a red warning for foreign brands. Maybe they should reconsider conquering China with “Made in
Italy”.