By Jonas Hoffmann, Ivan Coste-Manière (eds.)

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Hospitality is another sector where the country excels, with chains like Taj and Oberoi. A rationale similar to that in China applies. Global luxury companies could emerge in the long term if the country keeps up in its development path, but they are unlikely to appear in the near future. As in China, luxury giants are investing in local companies, like Moet Hennessy Louis Vuitton (LVMH)’s L Capital acquisition of a stake in Fabindia. Moreover, a continuous understanding of this market and its education about (Western-defined) luxury consumption is a top priority for established groups.

This cannot be said of the “created and made in” label. Given the strategic assets it represents and the premium price it allows companies to command, this will continue to be a major issue for years to come. What entities like the European Cultural and Creative Industries Alliance (ECCIA)14 do will influence our perception of where “true” luxury comes from. The frame presented above presents a path for Chinese luxury companies to grow and profit with “created and made in China” luxury products.

Moingeon, B. and Lehmann-Ortega, L. (2010), “Building Social Busines Models: Lessons from the Grameen Experience”, Long Range Planning, 43(2–3): 308–325. 8. Dussart, C. (2010), Creative Cost-Benefits Reinvention: How to Reverse Commoditization Hell in the Age of Customer Capitalism, London: Palgrave Macmillan. 9. A crucial question is what we understand by value? For the company, it is the reward for the entrepreneurial risk. For the client, it is what makes him better-off with the company offer.

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