Luxury brands have never had it this bad in China. For most of them, China is no longer the cash cow it once was. Multiple reports suggest that the luxury retail business in China is shrinking. The top 10 global luxury brands as per Millward Brown’s latest BrandZ report—a list that includes names like Louis Vuitton, Hermes, Gucci and Chanel—saw 6% of their total brand valuation evaporate in 2015, and China is partly to be blamed. Already the likes of Louis Vuitton, Armani, Prada and Chanel have started shuttering stores in China. But all is not lost and luxury can still make a comeback in China.
China Data: A Milestone for RMB Internationalization
Essential numbers on China: from the RMB internationalization to the contraction in the luxury market, growth in e-commerce transaction value, and more
China Roundup: Bitcoin Prices Plunge; Luxury Market Slows Down; and Housing Prices Rise
The week that was: luxury retail in China slows down as the government’s anti-corruption measures take effect; over-the-counter exchange markets widen their reach; housing prices rise; and bitcoin prices nosedive. China broadens OTC exchange nationwide More small and medium-sized companies will have access to China’s over-the-counter (OTC) exchange market, as the Chinese State Council announced […]
China’s Luxury Market Grows in Lower-Tier Cities
Ogilvy & Mather Chief Knowledge Officer Kunal Sinha believes that China’s lower tier cities hold the key to the country’s growth If you thought that China is all about big cities like Beijing, Shanghai and Guangzhou, think again. The next big areas of growth are lower cities in China’s interiors. With 200 million households, rising incomes […]
Can Shanghai Tang Become the definitive Chinese luxury brand?
What luxury clothing retailer Shanghai Tang’s ascent means for made-in-China luxury brands that play up their Chinese identity. Nestled in a three-storied building on Hong Kong’s hip Duddell Street is Chinese luxury clothing retailer Shanghai Tang’s 1,400 square meter flagship store, the largest it has globally. ‘Shanghai Tang Mansion’ as this store is called is, in […]
The New Big Spenders
Luxury brands change tactics to drive sales in tier-two and tier-three cities Just a decade ago, Jiefangbei Pedestrian Street in downtown Chongqing was a bustling hub of cheap goods and low-end domestic brands. To see a woman stroll down the street toting a Louis Vuitton bag wouldn’t have been unbelievable: everyone would have just […]
“New luxury” and the rise of a Chinese luxury clothing brand
Mao Jihong, founder and president of Mixmind Art & Design Co., Ltd., is known internationally for establishing the first and most successful Chinese luxury brand Exception de Mixmind. Mao’s success stems from his engagement with Chinese culture, and his persistence in establishing an authentic value and aesthetic system that is original yet with international appeal. […]
China’s globalization efforts move full steam ahead
While throngs of Chinese shoppers are buying up Louis Vuitton bags, iPhones and Rolex watches as fast as they can get their hands on them, more Chinese firms abundant with capital are also rapidly buying foreign companies amid the stagnating US and European economies. This trend shows no signs of slowing down. State-controlled energy giants […]
New challenges and opportunities for MNCs in China
MNCs in China are facing more difficulties amidst increasing competition, and they feel they are losing advantage. How can they find their way out of this? In December, French dairy giant Danone SA announced its suspension of its Shanghai yogurt production factory, although it will continue operations of its Beijing factory. A spokesperson for the […]
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