How to Get It Right Marketing to Chinese Luxury Consumers

High-end retailers’ Chinese New Year promotions are attracting Chinese consumers with impressive purchasing power, but retailers are not getting it quite right.

Shoppers watch a Chinese Lion Dance performance to celebrate the Chinese Lunar New Year at the Bloomingdale’s flagship store on Lexington Avenue in New York City on Feb. 19, 2015. Samira Bouaou/Epoch Times

NEW YORK—High-end retailers selling luxury goods, like Bergdorf Goodman, Saks Fifth Avenue, Prada, Christian Dior, Bloomingdales, Tiffany & Co., Max Mara, Macy’s, etc., have embraced this Chinese New Year of the ram to attract Chinese customers notorious for their impressive spending power.

They are rolling out limited-edition items, hiring Mandarin-speaking staff, offering international shipping to Mainland China, giving away gift cards, providing personal stylists, and sending out invitations to their valued customers to special VIP events in the evenings after store hours.

In 2012 Chinese shoppers took first place in terms of spending on luxury goods, representing about 27 percent of purchases worldwide. That percentage is estimated to go up to 35 percent this year, according to data from the McKinsey Global Institute. Last year, Chinese shoppers spent about $61 billion (380 billion yuan) on luxury products, the Bain & Company consultancy group reported on Tuesday.

Luxury brands may be facing some stealthy challenges or may have to perform some balancing acts to maintain their traditional exclusivity, authenticity, and cachet.