The rich seek luxury - away from home(2)

As many affluent Chinese change their shopping behavior, they are also expecting more in terms of customer service in stores. Both Bain and CLSA pointed to the fact that global luxury brands need to adjust their marketing approach in China or face the prospect of not being able to keep up with the demands of the Chinese consumer.

Debnam from KPMG said brands need a global strategy for Chinese consumers both internationally and locally.

"This means you will need a strong market position within China," Debnam said. "They also need the right product offering available in international stores."

Sage Brennan, co-founder of China Luxury Network, a forum for China's luxury sector, said: "Reaching the Chinese consumer is not just about launching retail locations in China.

"Chinese consumers have gone global and they expect brands to recognize their preferences and treat them appropriately," he said.

To give consumers in China the same experience as in France and Italy, some luxury brands are tapping into in-store impulses for China's biggest spenders, offering them exclusive perks, such as custom-made products or once-in-a-lifetime experiences.

According to The Wall Street Journal, Louis Vuitton recently took 10 of its most valued Chinese clients to Mongolia for a helicopter tour, landing at various luxury resorts to watch private camel-polo tournaments.

The French luxury giant is planning more similar events to "provide an experience to customers that they wouldn't necessarily think of", a company spokesman said.

In July, it opened a four-story Shanghai outlet equipped with an apartment for private client events and a parlor where VIPs can custom-design their own bags and leather shoes.

Wang Qifei, a 28-year-old fashion lover who said she flies to Hong Kong for some shopping whenever she gets bored, said she receives special gifts and greeting cards from Chanel on her birthdays. Wang, who works as the general manager of her father's insurance company in Beijing, is among the capital's wealthy second generation, who spend extravagantly on luxuries such as cars and cosmetics.

Many wealthy Chinese said that it's not enough to be rich and that they want VIP services, such as having the owner of the most expensive restaurant in town personally serving them.

Zhou Ting, executive director at the luxury goods and services research center at the University of International Business and Economics in Beijing, said for luxury companies, marketing efforts such as sending handwritten cards, arranging invitation-only events and recognizing who the big spenders are in their stores are required to win these customers' loyalty.

"Chinese customers like to receive gifts and text messages from luxury boutiques," she said. "It is not about the gift, but about how important and special you are, even to luxury companies that are already serving the most elite."

Chinese consumers said they also like to associate themselves with a specific luxury brand. The CLSA report finds that approximately 24 percent of its respondents earn around 41,976 yuan ($6,700) a year but would be willing to spend more than 50,000 yuan on a watch.

"It is a lot more important to dress well and enjoy a luxurious life when you are out in public," the report concludes.

But the rise of Chinese outbound travelers also reflects a profound shift in the taste of Chinese luxury consumers. As they have become more sophisticated through traveling, some are starting to avoid logo-heavy products such as Louis Vuitton and Gucci.

"Many consumers are now preferring to keep a low profile and shy away from flashy displays of wealth," Zhou said. "It is not about the logo any more. They want something unique and designed for them to express themselves."

But to give customers what they want, a global consistency in pricing is needed.

Pascal Armoudom, an expert with A.T. Kearney Management Consulting Co Ltd in Shanghai, said it is important to maintain a global price consistency to avoid having Chinese shoppers feel too frustrated when they see varying prices in different locations.

"But this need for consistency can also affect profit if there is a need for change today," he said.