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.
Swiss watchmaker, Zenith, has joined forces with wildly popular Chinese singer and actor, Xiao Zhan, the brand announced on Monday.
The news was greeted on China’s Weibo micro-blogging platform by Xiao Zhan’s most fervent fans sharing pictures of their receipts for Zenith products, purchased to celebrate the new partnership. The young actor’s 30 million-strong social media following has proven a double-edged sword in the past, causing controversy by engaging in online battles with rival fans and aggressively combatting perceived slights.
That hasn’t stopped brands from rushing to partner with the sometimes controversial star. Tod’s, for example, announced Xiao Zhan would be its brand spokesperson in May.
Mainland China became the world’s number one destination for Swiss watches last year, displacing Hong Kong’s decade-long reign at the top of the list. In 2020 worldwide exports declined 21.8 percent, according to the Federation of the Swiss Watch Industry, but exports to mainland China climbed to $2.6 billion, a 20 percent year-on-year rise.
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.