Luxury Portable Consumer Electronics in China

PROSPECTS

Luxury mobile phones struggling to compete with technologically advanced domestic brands

2019 saw luxury mobile phones continue to struggle to meet the challenges posed by the availability of domestic brands offering both more affordable pricing and more advanced technology. The roll-out of 5G technology was a prominent issue at the end of the review period.

Luxury brands embracing technology

A number of factors are combining to encourage luxury brands from across a range of categories to introduce new technology into their products. Technological developments, the roll-out of 5G, the increasingly central role of digital technology in consumers’ everyday lives and the trend towards self-quantification supported by rising consumer health-consciousness are all attracting brands to the idea of incorporating technology into their offer.

Fitness trend boosting sales of smart wearables

The increase in consumer health-consciousness, supported by government initiatives, is encouraging a growing number of consumers to engage in regular sport and exercise. Middle class Millennials, in particular, have taken up running to improve their fitness and relieve the stress of busy urban lifestyles.

COMPETITIVE LANDSCAPE

Major luxury brands target smart watches

Hermès International SCA became the largest player in luxury portable consumer electronics in 2018, as bankrupt former leader, Vertu Corp Ltd, withdrew from the market. Hermès International’s strength in the market is founded on its collaboration with Apple to produce a luxury iWatch.

Citizen Watch working to expand in smart arena

Vertu’s departure from the market made Citizen Watch Co Ltd the second largest player in luxury portable consumer electronics. Citizen is represented in the category by the Swiss brand, Frederique Constant, which it acquired in 2016.

Domestic brand launches luxury 5G smartphone

Endorsed by well-known Chinese entrepreneur, Wang Shi, and manufactured with titanium and imported fine leather, the 8848 Titanium smartphone is considered to be the most expensive and high-end of all domestic smartphones. In October 2019, the brand unveiled its first 5G smartphone, the 8848 Titanium M6.

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