The China Edit | Angelica Cheung, Shanghai Tang, L Capital Targets Middle Class Consumption, Luxury Tax

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.

Angelica Cheung | Source: Courtesy photo

Angelica Cheung, Vogue China Editor-in-Chief” (Financial Times)

“Within eight years, Ms Cheung has built from scratch one of Vogue’s biggest and most dynamic international editions. In a market other fashion publishers thought was not ready, she launched a magazine with original content produced for China to global standards. In September 2005, the first issue started with 300,000 copies. This year Vogue’s September issue, a tome celebrating the magazine’s eighth anniversary in China, is 312 pages thick, 123 of which are luxury ads, with Dior on the inside front cover and Louis Vuitton on the back. Print circulation is 640,000, and including web and tablet users Vogue China’s readers number 1.2m, almost 10 per cent of Vogue’s readership outside the US. The readership in China is behind the US, Germany and the UK but ahead of France – in a country that did not even have a fashion industry until a few years ago.”

Shaping Shanghai Tang” (The Business of Fashion)

“Today, mainland Chinese are our number one customers. They represent 20 percent of our business, while our second [largest customer] demographic lives in the US — 18 percent. All in all, Asians as a whole represent 51 percent of our customers versus, 49 percent for Westerners. Because of this balance we can say we are truly an international Chinese premium brand.”

LVMH-Backed L Capital Raises $950 Million For Asian PE Fund” (Wall Street Journal)

“L Capital reached the $950 million cap it set in less than six months, thanks to support from sovereign wealth funds, pension funds and family offices from North America, Europe and Asia. “Investors were attracted to our strategy which targets middle class consumption in emerging Asia, a theme which will play out over the next few decades,” L Capital Asia regional managing director Sanjay Gujral told MoneyBeat on Thursday. L Capital Asia’s first fund has made 13 investments in sectors like fashion, leather goods, beauty and wellness, wine and spirits and watches and jewelry. That fund had raised $640 million.”

China To Place Consumption Tax On More Luxury Goods, Xinhua Says” (Bloomberg)

“High consumption and import taxes are already driving Chinese buyers to make luxury purchases overseas rather than at home, propping up European sales for brands from Prada SpA to Gucci. Close to a third of Chinese luxury buyers will shop in Europe in 2013, industry consultant McKinsey & Co. estimates, up from a fifth last year.”