Global Business Strategies and Cultural Adaptation: Investigating the Internationalisation of Luxury Brands in China

This thesis examines the internationalisation strategies of luxury fashion brands with a focus on their expansion into the Chinese market. As China solidifies its position as a dominant force in the global luxury sector, understanding the strategic, cultural, and operational dynamics of this market becomes crucial. The research aims to provide a comprehensive framework for luxury brand internationalisation, elucidating the defining characteristics and value creation mechanisms of luxury goods, and evaluating both pre-market entry motives and post-market entry strategic adjustments.

Utilising an interpretivist approach, the study employs qualitative methods, gathering data through semi-structured in-depth interviews with over 50 senior participants from European head offices and Chinese branches of international luxury brands. These participants were purposively selected to provide diverse perspectives on strategic and operational challenges. The thematic analysis of these interviews offers insights into the balance between standardisation and localisation in marketing strategies, highlighting the influence of cultural nuances on brand perception and consumer engagement in China.

Key findings reveal that successful luxury brand internationalisation hinges on a nuanced understanding of local market dynamics, strategic flexibility, and cultural sensitivity. The research identifies critical drivers and barriers to market entry, providing actionable recommendations for luxury brand managers on navigating the complexities of the Chinese market. Additionally, the study contributes to the theoretical literature on international marketing and strategic management, offering new perspectives on the role of cultural factors in global brand strategy.

This thesis underscores the importance of integrating local insights into corporate strategies, ensuring that luxury brands can maintain their global identity while resonating with local consumer preferences. The findings are intended to guide future research and strategic decision-making in the luxury sector, particularly in the context of markets that hold a pivotal role in shaping the future of global luxury, such as China.