Mistresses Chinese blame for slowing global luxury?
Chinese men buy gifts for their "co-wives" can be for luxury goods companies in the world with the best customer, even if they do not want to admit it. But this trend may be changing.
A recent research note from analysts at HSBC covering consumer brands and retail risks for the industry marked by a change in Chinese society.
According to HSBC, it is not uncommon for couples, wealthy Chinese "second wives or girlfriends (xiao san - literally" three small ", which means the third person in a relationship)."
But HSBC said such social practices of rich men take mistresses now seem to be in retreat.
The change could have an impact on the luxury goods company, because China has become the new promised land for the industry. Failure to register and operate a market increasingly complex, it can. Difficult for companies on the basis of the dramatic growth in recent years
In general, the Chinese tend to buy luxury products "flashy, more logo-driven" to her lover, as the most obvious Louis Vuitton [MC.FR Unavailable ()] handbags.
"A mistress is a way of projecting power in Chinese society, and the projection of power is very important," said Tom Doctoroff, CEO of JWT North Asia and author of What the Chinese want, told CNBC.com.
"For the second women's luxury brands tend to be flashy and bling. Want to show Mistresses."
Inside: Nearly half of the sales of luxury and up to 75 percent of sales in the category of watches in China are gifts, Radha Chadha and Paul Husband support the cult of the luxury brand driven Love Affair With Luxury Asia.
Another very important factor in the luxury landscape in China - led the only market for luxury goods in the world of men - is a gift from the company.
Guanxi or relationships are essential. To grow your business Montblanc and Burberry [BRBY.LN available ()] have also made this trend.
However, even this is threatened, because it seems to be a tolerance of less extravagant official donation.
The Chinese government has a growing number of anti-corruption warnings to local authorities and officials were allowed to accept gifts, such as tobacco and alcohol.
"If you are perceived rich and successful, you may win more business, and gain faster approval officials that you know the way to have to make appropriate gifts and donations," Chadha and her husband wrote.
But as the company learned of the size where it's a little corruption that fade usually begins even if these companies are seen usually replaced by other small businesses.
"As business is becoming more demanding and in accordance with international structures, the role of the donations go down," said Doctoroff.
Fighting for those who simply can not fast enough savvy to a Chinese buyer who increasingly unlikely that pay for articles of plaster logos, and more excited about the elements that show their origin designer subtly -. Always delete the initiates
Chinese consumers are becoming more demanding when it comes to luxury goods, according to Doctoroff, the luxury homes ignore this trend, arguing at your own risk.
"The Chinese are very savvy shoppers are compared to the duration of their experience in the world of consumerism, you pay a higher price to find real value, not just the quality, but what he says about the buyer what they are buying undervalued more.. - show they want, but discreetly, "he said.