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.
"Céline Holds First Runway Show in Beijing" (Red Luxury)
"Luxury retail in China has moved away from gaudy designs and to more streamlined, simple, and elegant styles that reflect the growing sophistication of some Chinese consumers. Céline, a high-end retailer, is doing everything it can to cater to its Chinese clients changing demands. Chief executive of Céline, Marco Gobbetti, says that the brand isn't proposing to open new stores in China anytime soon."
"The Secret Weapon Behind China's Booming Online Retailers? Women" (The Wall Street Journal)
"A new crop of Chinese e-commerce companies has harnessed the power of female consumers. Shares of Vipshop Holdings Ltd., which specializes in branded apparel at big discounts, have soared 30-fold since the company went public in New York two years ago. Women are 75% of the customer base and provide 90% of the revenue."
"JD.com Raises $1.78 Billion Pricing IPO Above Marketed Range" (Bloomberg)
"The offering is the largest ever of a Chinese Internet company listing in New York, according to data compiled by Bloomberg. Investors are seeking to capitalize on growth in China, where revenue from e-commerce will increase 64 percent this year, compared with 12 percent in the U.S., according to projections by digital researcher EMarketer Inc."
"J. Crew Returns to Asia With 2 Hong Kong Shops" (Associated Press)
"U.S. fashion retailer J. Crew opened two stores in Hong Kong on Wednesday, marking the company's return to Asia after it pulled out of Japan six years ago. J. Crew is the latest Western brand to set up in the city notorious for high rents as it explores future expansion in the lucrative China market."
"Not Addressing the 'Chinese Firewall' Can Haunt Luxury Ecommerce" (Luxury Daily)
"Slower load times on brand Web sites, especially when concerning ecommerce, can quickly lead to abandoned pages and carts. For luxury brands that want to tap the immense ecommerce potential in China, shoring up fundamental Internet problems is the first step."
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.