6. China’s economic slowdown and the government-led anticorruption drive are put

Question

6. China’s economic slowdown and the government-led anticorruption drive are putting the squeeze on Swiss luxury watch brands. Many of these brands depended on China for growth. According to a report by Deutsche Bank, exports of Swiss watches to China plunged 26 percent in March 2013 compared to 3/2012. One bit of good news is that China is cutting import duties by 60 percent on Swiss watches. On the other hand, Swiss watches are facing competition now from domestic watch brands (e.g., Seagull and Shanghai Watch). Still, the top 10 most wanted watch brands in China, with the exception of Cartier, are still Swiss-based. Given the mounting challenges, what can Swiss luxury watch brands like Rolex and Longines do to build loyalty in China?

Textbook: Global Marketing Management Seventh Edition Kotabe and Helsen CH 11 DQ# 6

Explanation / Answer

Swiss watches are one among the top ten luxury brand of watches still desired by the people of China.Even among tough competition and economic slowdown in China Swiss watches has its own brand in place of luxury watches.There are many reasons for its global survival and a few attempts to increase its loyalty in the Chinese markets are

1.Heritage ,attitude and status are the three properties that people of China expect from this luxury brand.Swiss watches among its many brands is able to offer these elements in its watches.So Chinese markets prefer this kind of luxury brand.

2.Chinese Women are known to be powerful opinion leaders and they like to flaunt their luxury shopping to others.Touched on this aspect the brand will be a success.

3.Globalisation in localisation should also be a focus.A little bit of pattern change according to the local taste will definitely take it to all the customers in China.

4.Quality and tradition are two things on which the Chinese will never compromise.So these two aspects should be extremely taken care of.

5.Advanced technology with advanced design models will surely be a success formula.

6.Luxury audience are always luxury intellectuals in China.They think in terms of luxury,its usefulness and the quality in choosing a brand.

When all these aspects are concentrated the Swiss brands can definitely create a loyalty and be the best demanding brand in China.

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.