China being the second largest economy of the world is one of the most attractive markets for the luxury brands of the western world. And the newer generations seem to be quite fond of them as well; however it doesn’t seem to be working out well for them.
Despite being able to perform well in the start and recording a healthy growth, they tend to underperform eventually. Failing to achieve their set targets and they do not remain profitable in the long run.
In today’s fast paced world, and the Chinese market being vast and ever-changing, the old school methods did not work out for the firms in the past and rightly so. They were heavily reliant on market research surveys.
Conventional methods of research did not bring much benefit for them as a country as huge as China could be extremely difficult to cover. The results seemed to be inapplicable on the market and irrelevant as well.
Plus the process could be time consuming that makes it hard to be able to catch up with the rapidly changing consumer habits and trends.
The key however was to be able to correctly identify the actual reason behind the failure of the brand. In response come up with strategies build a strong brand image and improve the company’s performance.
This required them to get to know how the consumers felt about their brands and what sentiment is held for them as a brand. Also monitor the changes in the feelings of the consumers over time.
What the western brands failed to understand was that they could not simply operate with the same operating model as they did in other regions.
Artificial Intelligence could come in handy for these brands as this can aid to identify patterns and draw insights from real-time data.
An efficient data-driven management approach will help them to collect data from various brand touch points (from the footfall in the stores to online sales and even conversations consumers have about these brands online).
With the help of AI and machine learning combined the data points available could be analyzed to drive meaningful insights that could be used to devise actionable strategies.
AI is the future that is driving each and every industry in today’s time and could be critical in any company’s success.