2011 Bain China Luxury Market Study
6
With prosperity of online media, luxury brands need to
proactively manage negative media exposure in China
•
Luxury brands getting more scrutiny
from consumers and authority
Luxury brands are scrutinized for
quality issues, some even got
penalized
Increasing complaints on brands'
inadequate after-sales service in China,
which is often complex and time
consuming
- Many brands don't have customer service
hotline in China
"Chinese consumers used to assume that luxury
brands have superior quality simply because of
their big name and high price. However,
consumers are becoming more aware of
their legal rights in recent years."
Lawyer, China Consumer Association
Brands sometimes unintentionally got
associated with negative publicity
• Prosperity of online media facilitated
broadcasting of negative events,
especially those related to social
tensions such as labour dispute,
corruption, quality issues, etc
Showing-off of luxury products often
cause unprecedented public discussions
and criticisms on social media
"Luxury brands have been building their premium
image with good quality and cultural background.
But they often get associated with showing-off
of wealth, which may have negative impact
on them."
//
Industry expert
Brands need to be more sensitive to media exposure
risks & proactively manage PR in China
Source: Literature search
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