The Long March of the Chinese Luxury Industry towards Globalization: Questioning the Relevance of the “China Time-honored Brand” Label

Abstract

ABSTRACTThis article will study the political and commercial aspects of the relationship that the urban society of contemporary China has cultivated with luxury brands. In 2006, the Ministry of Commerce embarked on a major revitalization of the “China Time-honored Brand” (CTHB) label, which is a distinction it began to award shortly after the founding of the communist regime in 1949. The Ministry introduced a new set of eligibility criteria, and has restricted the label to companies active before 1956 whose products would embody the hallmarks of Chinese culture. We have noticed that luxury firms that are China Time-honored Brands suffer often from a weakness in brand identity because they lack in aesthetic differentiation and creativity. A comparison of three jewelry companies—Lao Feng Xiang, Cartier and Qeelin—will highlight these weaknesses. As the worldwide aestheticization of consumption intensifies, we argue that aesthetic management should be included in the long-term strategy for success of those Chinese luxury firms that are CTHBs and added to the current focus on longevity.