Facing with global competitors, local luxury companies
are under giant pressure. Natural selection
points that only the fittest one can survive, especially
in an open market. International luxury giant,
such as LVMH, PPR and Richemont Group, all
vie to tap into the Chinese market. As a small scale
luxury brand, local luxury brands find it hard to go
head-to-head with those giants. The wise strategy
for local luxury companies is to find a niche market
and specialize in this market. Even for Shanghai
Tang, new context of luxury brands are a major
challenge (Reyneke 2011).