The China Edit | China Sales Boost Prada, Alibaba Counters Fakes, Vanity Sizing Dilemma, Unique Malls

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.

Prada F/W 2014 Campaign | Source: Prada

Prada Says China Still Giving Boost to Sales” (Reuters)

“Italian fashion house Prada appeared to brush off luxury industry concerns about slowing growth in China, saying demand from the country helped to drive an 11.6 percent rise in sales for the six months ended July … Preliminary group sales for the first half of its financial year totaled 1.73 billion euros ($2.3 billion), just below analyst estimates around 1.75 billion euros.”

Alibaba Tackles Counterfeits in China” (The Wall Street Journal)

“Alibaba Group Holding Ltd. is stepping up its battle against rampant counterfeiting in China, as it gears up for one of the technology industry’s biggest initial public offerings. For the past several years, the Chinese e-commerce giant has been working to remove fake items from its Taobao shopping site. But counterfeiters are persistent, posing a challenge for Alibaba just as bankers and investors are raising their expectations for the company ahead of its initial public offering.”

Will China’s Expanding Waistlines Solve Retailers’ ‘Vanity Sizing’ Dilemma?” (Jing Daily)

“Finding the right fit has long been a challenge for retailers in China, whose “vanity” sizes have forced them to make major adjustments. Fast-fashion brands and mid-range American companies have especially had to make big changes when they entered Asia: Gap, for example, has to provide a size XXXS in China in order to make up for the size difference … This all may be set to change, however, as the size of China’s waistlines may be growing along with the country’s GDP.”

Mall Developers Trying to Dazzle Picky Shoppers” (China Daily)

“Influenced by controls on the residential market, Shanghai’s commercial real estate market has been overdeveloped in recent years, and there is an oversupply in the retail market… Many department stores have turned to more frequent, intense sales promotions to overcome customer ennui. Others adjust their tenant mix constantly. But analysts said that the fundamental solution is for each mall to offer something unique.”

How Luxury Brands Can Deal With China’s Infamous ‘Trademark Trolls’” (Jing Daily)

“For companies already stuck with a trademark squatter, the solutions are likely to be costly no matter what, but these problems for larger brands will likely serve as a fair warning for younger companies considering a foray into the China market to get their trademark early and know what they’re getting themselves into legally.”