The world of global “masstige” fashion has been rocked with news that some of the biggest names in the business have been forced to shutter amidst struggles in the Chinese market. For many consumers Mango was a market leader, and with its closure, the concept of affordable, aspirational fashion is left with a gaping hole. So what happened? And why did it crumble in the face of this crisis?
1. Bye Bye ‘Masstige’: The End of Luxury Brand Choices in China
When it comes to luxury brands choosing China as their market, the environment is rapidly changing. In the past, Chinese luxury shoppers had access to many ‘masstige’ – mid-market, luxury-styled products that were more affordable than those at full-price. But that time is coming to an end. Here’s what’s happening:
- Price hikes for luxury goods: To protect their exclusive image, luxury brands are often pushing up the prices of their goods in China. This is squeezing out the lower-end shoppers from the market, leaving behind mainly wealthy shoppers.
- Distribution adjustments: Luxury brands are tightening up their distribution networks, no longer allowing their products to be sold in budget stores. This makes it harder for budget-conscious shoppers to access masstige goods.
Between the rising prices and restrictions on distribution networks, the days of masstige luxury goods in China seem to be coming to an end. We might be saying goodbye to the era of luxury brand choices in China.
2. The Unstoppable Rise of Chinese Luxury Brands
A Way to Make Your Mark in The World
Chinese luxury brands are the new trend and they’re a way for businesses to make their mark on the global stage. With a focus on craftsmanship, quality production and innovative ideas, these brands go beyond the traditional approach to luxury and offer much more.
The growth of Chinese luxury brands shows no sign of slowing down. These brands are taking the world by storm. From fashion to jewelry, beauty and home decor, Chinese brands have established themselves as the go-to producers of stylish, luxurious products that make their mark on the world. The numbers speak for themselves – Chinese luxury brands now account for over 25% of all luxury products sold around the world, and they’re only expected to grow.
- Chinese luxury brands have a focus on craftsmanship, quality production and innovative ideas.
- Chinese luxury brands now account for over 25% of all luxury products sold around the world.
- From fashion to jewelry, beauty and home decor, Chinese brands are taking the world by storm.
It’s clear that Chinese luxury brands will continue to rise in prominence in the global market. Consumers are increasingly becoming aware of the quality of these products and the diverse range of products available. After all, why settle for ordinary when you can have extraordinary? As the market grows, it’s exciting to see how Chinese luxury brands continue to make their mark on the world.
3. Mango & Other ‘Masstige’ Brands: Failed Attempt at Dominating the Chinese Market
When Mango first hit the Chinese market, there was a lot of expectations that the ‘Masstige’ brands would dominate the Chinese fashion industry. Masstige is the term for products that are high in price, but of an average quality. Despite the initial hype, many of these brands failed to build up their presence in China.
A few of the most prominent “Masstige” brands are:
- Mango
- Gap
- Uniqlo
These fashion retailers all offer fast fashion solutions, but range in price when compared to going to the high street. What these companies found in the Chinese market is that there was a lack of willingness and availability of locals to pay such prices. As a result, none of these brands managed to acquire a significant presence in the Asian market.
4. Navigating China’s Ever-Changing Market: How Can ‘Masstige’ Brands Bounce Back?
China is home to the world’s fastest-growing economy, yet the market is continuously changing. From the emergence of new trends to volatile market cycles, it can be challenging to keep up with the flux. It’s never been more important for a “masstige” brand – defined as one that offers luxury products at an accessible price – to stay on top of their game. Here are our four tips for navigating this ever-changing market.
- Stay ahead of trends: Being on the cusp of the latest trends is essential for a masstige brand to stay competitive. Regularly research cultural movements, the latest fashion choices, and changes in the economy to find opportunities to stand out from the crowd.
- Adapt quickly: China’s market is unpredictable, so brands must be able to react swiftly to turn potential losses into successes. Remain flexible and focus on evolving according to the circum-stances.
- Engage customers: In order to remain successful, masstige brands must go beyond delivering quality products. Strengthen relationships with customers by becoming a trusted and reliable presence in their daily lives. Harness the power of technology, target specific demographics, and use social media to better engage customers.
- Rethink branding: Competitive prices are the hallmark of a masstige brand, and yet there are other ways to leverage this advantage. For example, use customised graphics, create exclusive partnerships, and strengthen your visibility through sponsorships.
It is also worth considering the evolving Chinese consumer trends and the needs of different groups in the market. With a strong focus on both price and quality, masstige brands will be able to create a lasting impression and remain a reliable corner-stone in the ever-changing Chinese market.
The unfortunate tale of ‘masstige’ brands such as Mango ceasing operations in China serves as a warning to companies of all sizes. Expansion into new markets can be promising, but as uncertain conditions such as the COVID-19 pandemic continue to put pressure on businesses, now more than ever it is essential that companies temper expectations, have a clear plan for success, and stay nimble.
