After Google’s plans to pull out of China, could luxury brands be next? Though China’s luxury consumption is luring the global luxury brands to focus on this burgeoning luxury market, a recent change in China’s advertising policy issued by the Beijing administration for Industry and Commerce might upset the international luxury brands. The new advertising policy bans the use of words like “supreme,” “royal,” “luxury” or “high class” in a bid to bridge the increasing wealth gap in the Chinese economy. The ban includes outdoor ads that “promote hedonism” or “the worship of foreign-made products.” The recent Forbes rich list reports there are are 54 more billionaires on this year’s rich list, and even the Chinese middle class are buying very well to lead an aspirational luxury lifestyle, which is the real driving force for the high-end international brands. But, the insiders think that this regulation, which comes into effect on April, is aimed at preventing false advertising. And, to those who don’t stick to this new regulation will face a ban of up to 30,000 yuan.
Via: Bloomberg599829
This doesn’t make sense. People will know anyway!