How Hermès Won China’s Heart

In the luxury world, Hermès’ iconic Birkin bag is one of the ultimate status symbols. A Birkin has become, for many, the Rolls-Royce Phantom of leather accessories: something so rare, precious, and exclusive, that we instantly associate it with royalty, celebrities, or fashion icons. But despite its prominence and popularity, not many people realize a […]

Healthcare, China’s Must-Have Overseas Luxury

In Thorstein Veblen’s 1899 economic study The Theory of the Leisure Class, specific goods like silver spoons and corsets represented a certain upper-class status. Fast-forward to the 21st century, and Birkin bags and German sports cars have become new symbols of wealth and prestige. But today’s younger high-net-worth individuals are shifting their priorities from ‘ownership’ to […]

Why Digital Wallets Aid Luxury Sales

Mobile payments have proliferated in China since 2004 when Jack Ma and Alibaba Group first launched Alipay. Today, mobile wallets dominate China, and Alipay is the indisputable global leader in mobile payment services. According to the South China Morning Post, “mobile payment transactions in China added up to more than$12.8 trillion last year, making it […]

Underestimating Moments of Truth: Why Many Luxury Brands Fail with Millennials

More than any other product category, luxury is where people pay significant premiums for the intangible value that a brand or service creates. I called this “Added Luxury Value” (ALV). ALV makes luxury enticing because its intangible character allows the best brands to generate significant profit margins. On the flipside, its intangible nature leads to […]