What luxury brands can learn from Oreo cookies
04/06/2018
On reporting the study at the end of May, the Financial Times said Chinese consumers had been the world’s biggest spenders on luxury goods since 2012. But it said there is now less difference in price for goods in luxury brands’ stores in China and those in Europe or the US.
At the same time, the FT quoted a new study by consultancy McKinsey that suggests Chinese consumers now prefer local brands to overseas ones when shopping for many items; for shoes and apparel, McKinsey has a figure of nearly 80% saying they prefer local brands.
The newspaper also quoted analysts who say international brands may be hampering their own possibilities for tapping into China’s appetite to move upmarket “because they make key decisions outside China”.
It went on to flag up consumer goods group Kraft Heinz, which last month launched a new cookie in the Chinese market, based on its Oreo products but priced “significantly higher”. In the build-up to the launch, the managing director of Kraft Heinz in China, Ze Dias, built a new team locally, with “Chinese knowledge” at the core of its work.
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