In 2010, China became the world’s second-largest luxury market, overtaking Japan. The growing demand for luxury goods from Chinese consumers means that many luxury brands now rely on the Chinese market for up to 40% of their revenue. How to capitalize on China’s burgeoning luxury goods market is therefore a key strategic consideration for Western luxury brands. The approach Bang & Olufsen, the Danish audio-visual company, has chosen is to partner with Chinese luxury goods distributor Sparkle Roll and private equity firm A Capital. Bang & Olufsen’s CEO, Tue Mantoni, admits that the firm’s current China strategy has been unsuccessful and hopes that the new partnership will help increase sales tenfold in China.
Luxury market for Danish Companies in China
