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’s tax authorities have punished two top livestreamers, Zhu Chenhui, who uses the screen name Xueli Cherie and Lin Shanshan, who also goes by Lin Shanshan Sunny, for tax evasion and fined them 66 million yuan ($10.34 million) and 28 million yuan ($4.38 million) respectively.
Their influencer incubation company, Chenfan Group, in which Zhu Chenhui is chairwoman and Lin Shanshan is chief marketing officer, has more than 350 influencers and livestreamers on its books, and operates more than 30 direct-to-consumer brands. During last year’s Single Day shopping event, its total GMV was more than 3.1 billion yuan ($485.9 million) This year, the company also received tens of millions of dollars in Series B and B + rounds of financing.
With the rapid growth of social commerce in China, industry insiders believe that regulation of the livestreaming industry is also on the agenda.
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L’Oréal Offers Vouchers to End Spat With China’s “Lipstick Brother”
French cosmetics giant L’Oréal is offering shopping vouchers to some Chinese customers to settle a dispute over discounts that drew the ire of the country’s top two livestreaming sales stars, the pair said.
Chinese e-commerce giants Alibaba and JD.com have faced increasing competition in recent years from low-cost platforms, such as PDD Holding’s Pinduoduo and ByteDance-owned Douyin.
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.