Reversing "Made In China" And Setting Up China'S Luxury Brands Are Facing A Difficult Road Ahead.

Buffett said in a video in 2007: "I threw away the rest of me.

"Creation" is one of the few new luxury brands in China. These brands look forward to being able to shoulder shoulder to shoulder with Gucci, Armani and Prada one day.

According to Bain &Co., China's luxury goods sales increased 12% last year to 9 billion 600 million US dollars, accounting for 27.5% of the global market.

In the next five years, China's annual consumption of luxury goods will increase to $14 billion 600 million, becoming the number one luxury market in the world.

Buffett's approval may lead to jokes on the Internet, and analysts also point out that China's emerging luxury companies are facing a long-term battle in pursuit of the world's heavyweight luxury brands.

Most of the world's most famous luxury goods enterprises have a long history and have a strong marketing tool.

There is also a deep-rooted consumer psychological barrier, that is, "made in China" generally means the general quality of popular products, and "made in Europe" is a synonym for aristocratic goods.

"In the short term, in terms of marketing, brand culture, design and quality, I don't think any Chinese luxury brand can compete with international brands," said Marie Jiang, an analyst at JLM Pacific Epoch.

Huge market

A survey conducted by Boston consulting company (BCG) in January showed that China will become the world's largest luxury market in five to seven years as Chinese consumers increase their wealth and enhance their brand awareness.

So far, the market is dominated by Western brands, most of which have stores in cities such as Beijing and Shanghai, and now they are targeting two or three tier cities.

But local brands such as "creation" are also trying to improve their popularity at home and abroad, hoping to get a slice of this lucrative market.

Another Chinese fashion brand founded in 1961 -

But the most serious challenge for Chinese luxury brands may be in the domestic market, because Chinese consumers tend to favor more famous and more historic international brands, such as Louis Weedon or Hermes in France.

At present, one of China's most luxurious brands approaching the international market is Shanghai Tang.

The brand, founded in Hongkong, is known for its colorful Chinese style fashion. It has opened stores all over the world.

In the Chinese market, as the pace of expansion of international brands accelerates, the trail of local luxury brands may become more difficult.

Stephen Mercer, partner of KPMG (Shanghai) accounting firm, said that Chinese luxury brands may succeed in some areas, such as liquor and jewelry.

One example he mentioned is Guizhou Moutai.