The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
"Chinese Designers to the Fore" (The New York Times)
"Cotton On Seeks Chinese Partner to Challenge Zara, H&M Dominance" (Bloomberg)
"Cotton On, along with apparel companies such as Fast Retailing and Inditex SA's Zara, are expanding in China as rising incomes boost buying power. The North Geelong, Victoria- based retailer, which also owns brands including Rubi Shoes, Supré and Typo, is opening more than 100 stores in Asian markets including South Korea, Japan and Vietnam to cut its reliance on Australia, which made up 55 percent of sales last year."
"French Handbag Maker Longchamp Sees More Potential in China" (Reuters)
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"Longchamp, one of France's leading handbag makers, plans to increase its presence in China, its chief executive said, in sharp contrast to retrenchment by rivals and despite the economic slowdown and changing consumer culture there. Many leading luxury brands such as Kering's Gucci and LVMH's Louis Vuitton have put the brakes on further store openings in China as part of campaigns to preserve their exclusive image."
"Under Shadow of Crackdown, Less Luxury Fashion Paraded at China's Big Government Meetings" (Bloomberg Businessweek)
“Once a year, China’s Great Hall of the People becomes an important place to see and be seen for some 3,000 delegates attending the legislative sessions of the National People’s Congress and the Chinese People’s Political Consultative Conference. In the past it’s been quite a fashion show. But this year, bowing to political winds, expensive ostentation is out — and low-key style is back in.”
"Victoria's Secret is Launching in Mainland China — But It's Not Selling Underwear" (Quartz)
"Victoria's Secret is making its first foray into mainland China, parent company L Brands announced last week, with the opening of Victoria's Secret Beauty and Accessories stores later this year. But blinged-out bras, lace undergarments, and $50 sweatpants won't be available there just yet. These 'VSBA' stores are smaller outlets that are often located in airports. Typically, some of them sell underwear, but when queried by Quartz, L Brands said the VSBA stores in China would 'focus on an iconic, fashion-forward range of beauty products, including our award-winning prestige fragrances, and chic accessories.'"
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.
While travel to Europe remains muted, Chinese shoppers are flocking to Singapore, Thailand and other Southeast Asian destinations where fashion retailers are hoping Lunar New Year marketing investments will pay off.
Local fashion designers experimenting with puffers and other down clothing have scored collaborations with outerwear companies like Moncler and attracted the attention of prominent international retailers like H.Lorenzo.