Executives of Louis Vuitton and Nike lauded the Chinese government for its toughened policies on curbing counterfeiting of luxury good brands.
Valerie Sonnier, global intellectual property director at Louis Vuitton Malletier, and Margo Fowler, chief intellectual property officer for Nike, lauded the anti-piracy laws implemented by the Chinese government during the recently held China International Import Expo.
Sonnier underscored China's effort in fostering a "much-improved environment for brands." The current environment was much better than what the luxury good market experienced 10 years ago, the executive for the French multinational luxury goods highlighted. The Asian superpower has done more dramatic improvements in upholding intellectual property rights compared to other countries, she said.
Sonnier said China's crackdowns on fake good syndicate in Guangdong province was significant in stopping counterfeited Louis Vuitton bags from reaching Dubai and the United States.
Fowler also praised China's steps to extend trademark status and protection for high-end brands, particularly to Nike's Swoosh logo and "Just Do It" slogan.
Both Louis Vuitton and Nike have been enjoying soaring sales in China as the younger population develops a stronger preference for high-end brands. For instance, Nike generated $5.1 billion in revenue from its Chinese market alone.
Louis Vuitton and Nike are not the only luxury brands that see China as an important market driving their yearly revenues in dramatic levels. Gucci and Hermes are also counting on China's most affluent shoppers for their yearly profit.
Hermes executive chairman Axel Dumas assured investors that the French high fashion luxury goods manufacture is not feeling any pressure that may come from the ongoing China-US trade war. He said Hermes remained strong all across the board in China and that there is no change with regard to the company's sales.
Early this month, Hermes, like Gucci, set up its own e-commerce website in China to increase its reach of the wealthy Chinese shoppers.
China's voracious demand for luxury goods is expected to soar in the years to come. Boston Consulting Group has estimated that the Chinese luxury good will expand by 40 percent by 2024. In 2017, Chinese consumers spent $119 billion on luxury goods shopping, accounting for about a third of the market worldwide.
A separate estimate from McKinsey's China's Luxury Goods 2017 report stated that Chinese luxury good costumers could double what they spent in 2016. The luxury goods worldwide market is forecasted to increase $400 billion in 2025 and Chinese will account for 50 percent of the global sales.
