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 Firm Strikes €1.3bn Deal for French Fashion House" (The Financial Times)
"KKR has sold SMCP, the owner of French fashion brands including Sandro to the Chinese textiles maker Shandong Ruyi in a deal valuing the company at €1.3bn including debt, according to people familiar with the matter."
"Has the BRICs Bubble Burst?" (The Guardian)
"Brazil, Russia, India, China and South Africa seem to be failing to justify predictions of 21st century domination."
"Why 'Bling' Isn't Dead in China's Luxury Market" (Jing Daily)
"As China's luxury slowdown continues, there's been a great deal of news about the death of 'bling' as both the anti-corruption campaign and changing tastes cause consumers to turn away from logos and ostentatious styles."
"China Changes Online Import Tax Rules, a Move to Help Cosmetics" (Bloomberg)
"China is changing tax rules for imported goods that are sold online in a move that will see beauty products such as eye creams and moisturising gels from L'Oreal SA's Lancome and Korea's Amorepacific Corp. becoming cheaper for Chinese consumers."
"E-Commerce Latecomer Chow Tai Fook Chases Alibaba" (Bloomberg)
"The Chow Tai Fook brand is making a move to chase Alibaba and other Internet retailers by expanding its online presence."
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.