A new study finds that Chanel has the highest brand awareness among luxury consumers in China, followed by Dior, Hermes, Gucci and Louis Vuitton. Chanel is also the luxury brand these shoppers are most likely to purchase — 41% say they’ve bought a Chanel item in the last year, and 46% hope to buy more Chanel goods in the coming year. This aligns with data from L2’s Digital IQ Index: China Luxury 2014 study which shows that Chanel replaced Louis Vuitton last year as the most searched brand in China, averaging 12,745 daily searches on Baidu— more than five times the Index average.
On social platform Sina Weibo, Chanel was in the Top 4 most popular Fashion brands with over a million followers as of April 2014 — far ahead of rivals including Louis Vuitton and Dior. (The massive popularity of Diane von Furstenberg’s personal account showcases the strength of celebrity in China.) Overall, L2 ranked Chanel as an Average brand in terms of digital competence in China; one notable shortcoming was the brand’s absence on the WeChat platform.
In March, Chanel took the unusual step of cutting prices in China and Hong Kong in order to better align prices with those in Europe, where the brand raised prices. The move undercuts traders who buy in Europe and resell in Asia and the robust gray market.