brands

The Brands That Chinese Millionaires Love

Filed under: Wealth

If you are driving a Bentley, rest your left hand gently on the rearview mirror just out the window -- this is how other drivers will notice your stunning Patek Philippe watch. At least, this is how you should roll if you're a millionaire in China.

According to a survey by Hurun magazine, China's wealthy love watches by Cartier and Patek Philippe and like to slip behind the wheel of Bentleys. Vacations in the United States are also favored. But, for cigarettes and first-class flights, Chinese millionaires like to keep it local. Air China tops the list for luxury flights, and Chunghwa is the favorite tobacco, according to Hurun, with Chinese who have at least $1.46 million in wealth. Unlike cigarettes, though, the favorite cigar brand, Davidoff, is from abroad.

The average respondent to the Hurun survey takes 15 days off a year, on average, has three cars and owns five watches that cost at least $10,000 each.

According to Rupert Hoogewerf, chief researcher and founder of Hurun, the Chinese "have a greater awareness of brands." He continued to Bloomberg News, "They are also more international-minded and keener to give their children a foreign education." Four out of five are planning to send their kids to school abroad for high school and beyond, with the United States the preferred destination.

Being wealthy doesn't mean this community is finished coveting. Now that they are taking more time off, 50 percent want to buy a yacht, and 15 percent would love a private jet.

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Tags: bentley, brands, cartier, china, cigar, cigarettes, cigars, davidoff, patek philippe, PatekPhilippe, private jet, PrivateJet, tobacco, yacht, yachts

Can The Right Attitude Help You Pull Off A Fake?

by Deidre Woollard (RSS feed) —

Filed under: Handbags

A few days ago my colleague Rigel Celeste wrote an interesting story about what your handbag says about you. In the story she posited that "carrying a knock-off bag can say that you're putting a fake front to the world." According to an intriguing story on Bloomberg, a study done by Renee Richardson Gosline, an assistant professor of marketing at MIT's Sloan School of Management, showed that if you want to get away with wearing a fake you need to have a certain attitude. Her research revealed that people are more likely to peg a handbag as being a real designer bag if the woman carrying it is wearing expensive clothes or has an aura of wealth.

Her methodology involved showing 100 owners of luxury handbags photos of bags alone and photos of bags worn by people in social settings. The study subjects were more able to ascertain an item's authenticity and potential cost of the item when it was in context. Gosline, who also happens to be a former brand manager for LVMH Moet Hennessey Louis Vuitton, found that even a nice fake won't fool many consumers if the rest of the package doesn't match up. I would suggest that a similar principle is often in effect with jewelry. A costume piece can appear more or less authentic depending on the person wearing it. Individual pieces of a person's wardrobe seen in context can elicit very different reactions from observers.

Gosline's research also showed that people are willing to pay twice as much for an item that they think will impress others and can be used to trumpet wealth and status. In another study she found that many purchasers who buy knock-off bags later gone on to buy real ones. Quoted in the Bloomberg article she says that the counterfeit served as a "placebo for brand attachment" leading people to become attached to a certain brand even though they never actually owned it.

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Tags: brands, counterfeit, fake, handbags, knockoff, luxury

Will Coach's Creative Director Be His Own Brand?

by Deidre Woollard (RSS feed) —

Filed under: Apparel

Coach president and creative director Reed Krakoff has never entered the public lexicon the way other creative directors like Tom Ford have. But Krakoff, who has has had a long and influential career in fashion, may be stepping into the spotlight.

Fashion Week Daily says that Coach will be developing a new brand around Krakoff. The names "Reed," "Reed Krakoff," and "RK" have been registered with the United States Patent and Trademark office along with a couple of custom logos. The trademark could be used for ready-to-wear and leather goods or for personal care products as well as "hotel and restaurant services."

What does the always ambitious Krakoff have up his sleeve? Coach has only said that they always have new projects in development. Before joining Coach in 1996, Krakoff worked for Ralph Lauren and Tommy Hilfiger so he has learned about building a personal brand from the best in the business.

Tags: branding, brands, coach, luxury, reed krakoff, ReedKrakoff

Gucci Is The "Most Coveted" Luxury Brand

by Rigel Celeste (RSS feed) —

It's official, according to the latest Global Luxury Brands Survey the "most coveted luxury brand" in the world is Gucci -- 1 in 5 global customers said that if money was not an issue they would choose Gucci over every other luxury brand. The survey was done this past November and this marks Gucci's third year holding on to the top spot in what is a more challenging and competitive luxury market than ever before.

It's worth noting that this survey ranked Gucci as #1 globally, not regionally. Other brands ranked better in specific places, like Chanel was #1 in China and Christian Dior did the best in Russia.

Gallery: The Most Coveted Luxury Brands