The China Edit | Bomoda Educates Chinese Shoppers, Woes of Homegrown Luxury Brands, Luxury Price Growth Stagnates

The China Edit is a weekly curation of the most important fashion business news and analysis from and about the world’s largest luxury market.

Qeelin campaign | Source: Qeelin

Former NBC Digital Exec Launches Bomoda to Sell Luxury to the Chinese” (Ad Age)

“Bomoda is a newsletter designed to bridge the gap between international glossies that often use content translated from Western editions, and local publications that can be weak on global coverage. Bomoda’s contributors are all Chinese, based in cities like New York, London, Paris and Milan. They present trends in a way geared toward educating the Chinese consumer, who often shops while traveling abroad. As Chinese travel more frequently and move away from overseas bus tours with designated stops at luxury stores in favor of more independent travel, their need for information grows.”

Why Chinese Companies Lack Homegrown Luxury Brand Power” (Wall Street Journal)

“It’s true that global giants from Prada to Apple source goods from China, but it is difficult to name a single Chinese brand that is known for its quality products. Trying to find quality craftsmanship in China is also a problem, especially when it comes to complex items such as watches and jewelry. When Guillaume Brochard co-founded Chinese jewelry brand Qeelin in 2004, he couldn’t find reliable workshops in China, so he turned to France to produce China-inspired jewelry. ‘The smart people in China aren’t interested in a business that takes time to generate high returns,’ said Mr. Brochard, chief executive Qeelin, which is now part of French luxury group Kering. ‘There are better business opportunities available.’”

China’s Luxury Price Growth Stagnates to Seven-Year Low” (Jing Daily)

“Late last week, the Hurun Report published the Chinese version of its annual Luxury Consumer Price Index (CPI), which found that luxury prices have grown by 1.52 percent, a decline of 3.42 percent from last year and a seven-year low overall. ‘Driven by consumer demand, luxury prices were increasing fiercely in the past few years, but that momentum seems to have come to a halt this year. The main reasons are China’s economic slowdown and the fight against corruption,’ said Hurun founder Rupert Hoogewerf.”

US Designers Take Trunk Shows to China” (Associated Press)

“Rag & Bone, Marchesa and Proenza Schouler, among the top in their class of cool, youngish New York-based fashion houses, took a field trip to China recently to start a dialogue with consumers there as they all have their eye on expansion. The designers were selected by Vogue Editor-in-Chief Anna Wintour and the Council of Fashion Designers of America as part of a joint Fashion Fund program. ‘There’s a market for less-known names, not the household names yet — something special and personal,’ Wintour said during a recent phone interview.”

China Opts for Only Small Steps to Stimulate Economy” (Dealbook)

“Bearishness toward China has now gone mainstream, and rare is the day without a report on the economy’s impending crash. Even in the midst of the broader realization that China’s economy has significant problems, some investors have been able to make money choosing the right sectors and companies. The operating environment for foreign firms, both economically and politically, is getting increasingly difficult, but foreign investors should continue to have plenty of public market opportunities, both in the short term and the long.”