Cellphone maker strives to reach peak of luxury

Signature Touch blends luxury materials, state-of-art technology and efficient services [Photo/China Daily]

"Although we are in the cellphone market, we don't compare ourselves to other mass produced smartphones. We are more competing with other luxury products like hotels, restaurants, fine wine, fine food and vacations," says Pogliani.

Experts estimate that there were 2.9 million people with assets of more than 6 million yuan in China by the end of 2013, a 3.6 percent increase from the year before, and the number of people with a net worth of more than 100 million yuan has increased 4 percent year on year to 67,000, according to the China Spiritual Investments White Paper 2014 jointly published by the Industrial Bank and Hurun Report in May.

Those numbers have boosted China to become one of the top three markets for Vertu. "We have very loyal customers in China. People are buying more than one handset, they like to change the phones and they like to buy different versions of Vertu. The concept of luxury mobile phones is very well understood in China," Pogliani says.

To cater to changing attitudes of customers, the brand has moved its design and usage of materials and color codes toward more understated luxuries.

"Less bling, more subtle, which is the term of luxury today," Pogliani says.

Luxury sales in China have slowed because of the government's campaign against corruption since last year, and Vertu has been adjusting to the change. With 64 boutiques in China, most of which are in first- and second-tier cities, the brand is going to focus on the stores it already has and open no more than six stores in the next three years, Pogliani says.

"I believe the government is fighting against corruption, but not luxury," he says. "I think it will be beneficial to all the brands in the long term because the growth will be more sustainable."