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Jun
2015

Fashion & Accessories June 2013

According to a projection from Deutsche Bank it expected there to be a 20% growth in the Chinese luxury market in 2013, accounting for 26% of the global market. According to its most recent analysis, although there was slowing of growth in the first quarter of 2013, the major luxury brands still achieved good average increases.

Recent brand performances

In its 2012/2013 annual report issued on 21st May by Burberry, 20% of its overall revenue growth for the year came from China where 11 new stores opened in last year. The CEO of Burberry Angela Ahrendts revealed in an interview that 15% of Burberry global sales are from Mainland China and Chinese consumers shopping internationally represent 10% of the sales. The company plans to open 25 new stores globally by the end of 2013, most of which will be concentrated in developing markets such as China and Latin America. So far, there are 70 Burberry stores across 35 cities in China. The largest flagship store in Asia will be opened in Shanghai in December this year.

Givenchy have also said that they intend to enlarge store numbers in China from 10 to 30. The brand considers the rising middle class as a driver to push forward their expansion strategy. The plan is to target young Chinese consumers with trendy ready-to-wear. Currently the existing 15 Givenchy stores cover 13 cities in China.

Hermes reported a 12.8% sales increase, 17.6% less than last year, however, Greater China achieved an overall sales increase of 17% by comparison. The brand has maintained its original strategy of slowing down store opening’s, focusing on refurbishing and enlarging existing stores, and recently starting to cooperate with one E-commerce website to sell 6 styles of shoes online.

Prada by comparison, was unable to maintain its growth in China, although it still saw a 14.7% increase in business globally, a poor performance in China as its largest global market was disappointing. Previously the CEO had stated that the brand planned a further 70 to 80 stores in 2013 (10 to 12 in China), however, up until April, only 2 new stores were opened globally and 1 store closed.

Salvatore Ferragamo performed in the similar way to Prada in Asia Pacific, its largest market representing 36% of revenues. The brand recorded a 57% growth of net profits in the first quarter of 2013 to 270 Million Euro, however, APAC only increased by 6.3%, much lower than the 27% attained in 2012. Their coping strategy is to strengthen the distribution channels, expanding markets in second and third tier cities and exploring channels in airports and tourism resorts, as well as the online websites.

Unlike many of the top luxury brands that have been influenced by recent anti corruption policies, Coach being positioned as affordable luxury continues its success in the Chinese market. The first quarter report recorded that due to a 40% growth in the Chinese market, the brand achieved a 6% increase to $US 239 Billion which was above market expectations.

lvStore opening

May

Prada and Giorgio Armani opened new stores in the Tianjin Galaxy Mall.

Bally added new stores in Shanghai and Ningbo one day after another.

The Burberry store in L’AVENUE Shanghai became operational.

Berluti opened a store in the Shanghai IFC.

Lavin opened a new store in Xi’an.

Louis Vuitton opened a new store in Wuhan International Square, which is the second store in Wuhan since the first opened in 2008.

June

The first MiuMiu store in Tianjin opened in The Galaxy Mall.

A new Canali store opened in Shanghai’s Westgate Mall, which is the fourth boutique store in Shanghai.

Activity

Bally held a cocktail party and product appreciation event in the TaikooHui mall in Guangzhou in May.

Coach held an exhibition of mens’ products in Nanjing Deji Plaza in June, the first ever in the Asia Pacific market.

In 18th June, Chanel held a photographic exhibition of The Little Black Jacket in Beijing, two days later, it displayed in Shanghai.

The “Hugo Boss Asian Art Award” was established in Shanghai in June, to support young Chinese artists and award potential Chinese contemporary artists.


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