Corina Su would love to own a handbag or shoes from luxury brands such as Louis Vuitton (MC:FP) or Gucci (KER:FP). For now, Kate Spade (KATE), Michael Kors (KORS), or Coach (COH) will do. “We call these the ‘American trendy brands,’ ” says Su, a 25-year-old who works in advertising in Shanghai. She prefers Kate Spade’s bright colors and bold designs to the more muted styles offered by big European luxury houses that tout their heritage to justify charging more. “I might eventually buy an LV or Gucci bag,” Su says. “But it won’t be until I’m much older, I suspect.”
As Chinese shoppers such as Su get better acquainted with American luxury brands, they’re discovering a designer wardrobe doesn’t have to cost months of pay. That’s helping U.S. labels that offer fashions with a foreign pedigree but price tags in the hundreds of dollars even as European luxury-goods makers raise prices for some bags to more than $4,000 to combat slowing growth. “The Chinese market is developing into a middle-class market, looking a bit less elitist and a bit more American,” says Luca Solca, an analyst at Exane BNP Paribas.
via Made-in-USA Luxury Brands Win Fans in China – Businessweek.
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