read the ppt and write a research report
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SupremeCN.pptxWhat makes us an international brand?
Skateboarding, hip hop culture popular worldwide
* High demand for Supreme’s unique design in America,Europe,and Asia.
Locations
* New York, Los Angeles
* London
* Pairs
* Tokyo, Osaka, Fukuoka, Nagoya
Pop-up stores featuring the collaboration in Sydney, Seoul, Tokyo, Paris, London, Miami, and Los Angeles.
Why China?
* Hip hop, skateboarding culture is increasingly popular in China
* Economic growth in recent decades
* Strong Brand Effect in Young Generation
* Vibrant secondary market
* Successful of LV x Supreme Pop-up store
Market Analysis
As an emerging market with increasing economic power, Chinese people are beginning to buy and consume more luxury goods. There is a new emphasis on showing off one’s social status and wealth.
Prices of luxury goods are also being driven down by the Chinese government to encourage more Chinese people to buy goods in their own domestic market.
Chinese Market
The chart shows the sales of the luxury goods industry in China in 2010 and a forecast for the years until 2020. According to CLSA Asia-Pacific Market, luxury sales revenue in China will amount to 34 billion euros in 2016, is equal to 40 billion USD
Market Size
Population
According to a United Nations estimate, there are about 1.4 billion people in China
China’s population is equivalent to 18.47% of the total world population
China has the largest population of all countries, ranked number 1
A majority of Chinese are now residing in cities instead of rural areas
The median age of a Chinese person in China is about 37.3 years
Population
Economic Overview
“China's economy has enjoyed 30 years of double-digit growth.China is a global hub for manufacturing and is the largest manufacturing economy in the world as well as the largest exporter of goods in the world. By 2009, China became the sole Asian nation to have a GDP (PPP) above the $10-trillion mark (along with the United States and the European Union). By the end of 2015, China became the world's first ever nation to have a GDP (PPP) above the $20-trillion mark, doubling its overall output in the fastest time possible (six years.)China's economy is also measured by its gross domestic product. In 2016, growth was $19.39 trillion, the largest in the world. That's 6.9 percent more than in 2015” (The Balance).
Since China’s economy is growing, the value of its Renmenbi currency is also increasing.
Economic Overview
1.In 2012, the households in the top 5% income bracket earned 23% of China’s total household income.
2. Chinese households in the lowest 5% accounted for just 0.1% of total income in 2012.
3. Average annual income for a Chinese family was 13,000 yuan
4. The average amount of income in Shanghai was about 23,076.00 dollars a year
5. Average family income in China’s urban areas was about $2,600 in 2012, while it was $1,600 in rural areas.
6. China’s Gini coefficient was 0.49 in 2012, less than the 0.51 in 2010, indicating a slight decrease in inequality. (The Gini coefficient measures the wealth gap with zero being perfect equality.)
Family Average Income
Chinese luxury consumers are becoming increasingly young. Many teens are looking to purchase brands from other countries like the United States and England.
In China, there is the idea that these countries have more interesting modern culture.
The foundation for these brands have a more solid foundation than their Chinese counterparts.
Target Market
