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The Masstige Paradox In China: A Business Model Innovation Opportunity For Independent Luxury Companies?

Author

Listed:
  • Philippe Chereau

    (SKEMA Business School - SKEMA Business School)

  • Jonas Jonas Hoffmann
  • Isabella Soscia

    (SKEMA Business School - SKEMA Business School)

Abstract

Over the years, luxury has built-up a reputation as recession proof industry. Even though the industry growth has slowed down in the mid 2000s, luxury firms have managed to cope with economic contingencies and shortening traditional demand by widening their clientele base to prestige mass consumption-the "masstige clientele". Doing so, luxury firms have been pursuing a dual strategy by wooing aspirational consumers as well as their traditional elite customers, thus managing the challenge of handling both a differentiation strategy based on scarcity and uniqueness, and increased volumes of sales. This has been a trend in mature markets such as Europe, the United States and Japan, but was significantly fostered by expanding into emerging markets. Sector specialists thus expect China to remain a major structural growth area in the medium term, where the number of both high-end clients as well as new aspirational consumers will substantially increase and influence firms strategy.

Suggested Citation

  • Philippe Chereau & Jonas Jonas Hoffmann & Isabella Soscia, 2015. "The Masstige Paradox In China: A Business Model Innovation Opportunity For Independent Luxury Companies?," Post-Print hal-01948242, HAL.
    • Handle: RePEc:hal:journl:hal-01948242
    DOI: 10.15444/gfmc2015.02.07.03
    Note: View the original document on HAL open archive server: https://hal.science/hal-01948242
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    References listed on IDEAS

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    1. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
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    Cited by:

    1. Pizzetti, Marta & Chereau, Philippe & Soscia, Isabella & Teng, Fangyuan, 2023. "Attitudes and intentions toward masstige strategies: A cross-cultural study of French and Chinese consumers," Journal of Business Research, Elsevier, vol. 167(C).
    2. Shan, Juan & Lu, Hebo & Cui, Annie Peng, 2022. "1 + 1 > 2? Is co-branding an effective way to improve brand masstige?," Journal of Business Research, Elsevier, vol. 144(C), pages 556-571.

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