Chinese consumers buy UK brands such as Johnnie Walker, Aston Martin, Rolls Royce, Burberry and Gieves & Hawkes because of their Britishness, according to new research, The Geography of Luxury: East, West and Global Directions, conducted by Warwick Business School. And researchers believe that Britain’s cultural capital represents a number of unique qualities that make it difficult for competitors in France, Italy or the US to imitate.
“Luxury goods are defined as those satisfying hedonic rather than functional needs and our research has found this is an area that Britain enjoys a distinct advantage in,” says Professor Qing Wang of Warwick Business School. “A very important factor that makes Britain standout is that it incorporates tradition and innovation seamlessly.
“Put differently, Britain’s advantage lies in so-called soft power, which is defined as the ability to get what you want through attraction rather than through coercion and cultural heritage is a key part of that. The extent of its impact is hard to measure and even harder to replicate. As China promotes its own soft power, it has increasingly turned to Britain for inspiration.”
The lure of luxury also spreads into other consumer segments. “There is a trickle-down effect from the tailor-made luxury product segment with high price tags and exclusivity benefits to other consumer segments where more affordable and mainstream luxury goods are offered,” says Navdeep Athwal, a doctoral researcher in Warwick Business School’s marketing group. “Members of luxury goods consumer-led virtual communities seek to emulate the behaviour of their elite counterparts and to gain the same levels of status and recognition.”