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.
"China in Vogue" (BBC)
"The Chinese are learning quickly – for in the pages of China's magazines, amongst the familiar names of Armani, Gucci and Prada, you'll also find a growing number of home-grown brands, such as Vega Zaishi Wang, who are challenging the stereotypes of the 'Made in China' label. As part of the BBC's Freedom 2014 season, journalist Jessie Levene who lived in China for three years, returns to tell the story of the rise of China's magazine culture, its link to consumerism, and the changing face of Chinese fashion."
"As Giant U.S. IPO Nears, Alibaba's China E-Commerce Crown Slips" (Reuters)
"Alibaba's dominance of online retail in China faces its biggest-ever challenge as the firm founded by Jack Ma in a one-room apartment 15 years ago lines up a U.S. initial public offering that could value the firm at around $140 billion. In a rare blip, Alibaba Group Holdings lost market share last year while its nearest rivals all grew, according to Euromonitor. The market research firm sees China's internet retail market tripling from 2012 to over $300 billion in 2018 as the country's smartphone-savvy shoppers buy everything from plane tickets to sneakers online."
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"Body Shop Removes All Its Products From Chinese Duty-Free Stores" (The Guardian)
“The Body Shop has removed all its products from duty-free shelves in China after it was revealed the ethical company’s products were at risk of testing on animals by the country’s authorities. On Tuesday, an investigation by consumer watchdog Choice said the cruelty-free cosmetic company was selling its products in Chinese airports, and thus its products could be randomly tested on animals by Chinese authorities.”
"China Puts a Stop to Plans for Virtual Credit Cards" (The New York Times)
“China’s central bank has ordered the Internet giants Alibaba and Tencent to halt plans to issue virtual credit cards in partnership with a large Chinese bank, citing concern over safety risks. This month, the two companies separately announced plans to team up with China Citic Bank International to create the virtual cards for online transactions and for offline retailers that accept payments by scanning a QR code — an image similar to a bar code — with their smartphones.”
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
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.