The China Edit | Burberry’s Storytelling, Alibaba Buys $1.2B Youku Stake, Fakes

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.

Models dancing at the Burberry event in Shanghai | Source: Burberry

Storytelling Key to Burberry’s China Strategy, Says Christopher Bailey (The Business of Fashion)

“‘I think its important people go along with this journey otherwise it becomes a faceless product,’ Burberry’s chief creative officer and incoming chief executive officer Christopher Bailey told BoF, following a multimedia, Broadway-like show — billed as an ‘immersive, theatrical journey through the Burberry world of music, heritage, product and innovation’ — that the British megabrand staged on Thursday in Shanghai at one of the city’s shipyards.” 

Alibaba Leads $1.22 Billion Stake in Video Site Youku Tudou (Bloomberg)

“Alibaba Group Holding Ltd. and founder Jack Ma’s Yunfeng Capital agreed to buy a $1.22 billion stake in video website Youku Tudou Inc. as China’s biggest e-commerce operator prepares for a U.S. initial public offering. Alibaba will hold about 16.5 percent of Youku while Yunfeng will have about 2 percent, Youku Tudou said in a statement today.”

Yue Yuen Resumes Production at Dongguan Factory After Strike (Bloomberg)

“Yue Yuen Industrial Holdings Ltd., a maker of shoes for clients including Adidas AG and Nike Inc., said production at its Dongguan factory has resumed fully after being disrupted by a strike that began April 14. ‘All operations have returned to normal,’ George Liu, a Hong Kong-based spokesman for the manufacturer, said today by phone. All of the workers at the factory, which has about 45,000 employees, have returned to work, he said.”

Fake Luxury Goods Market in China Moves to WeChat (Want China Times)

“China’s fake luxury goods industry is taking its business to a new level by selling ‘replicas’ through social media platforms, reports the Guangdong-based Southern Daily. Imitation luxury goods including high quality handbags and wallets are nothing new in China but recently vendors have begun selling so-called ‘replicas’ that are so close to the real thing that even staff at legitimate stores can’t tell the difference.”

The World’s Largest E-Commerce Site Is Selling Stinky Sunscreen And Knock-Off Backpacks (Quartz)

“The upcoming IPO of Chinese online retail giant Alibaba has spawned some incredibly optimistic estimates of what the company may be worth when it finally lists on a stock exchange, which is expected to be in New York and to happen this year. But much of the analyst excitement surrounding the IPO has ignored one pretty glaring problem with the company’s business model — it is hard to tell where many of the products that sell on Taobao, the company’s virtual shopping mall with 7 million registered vendors, originally come from.”