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Jun
2015

Fashion&Accessories October 2012

“We note the phenomenon that Chinese consumers are gradually no longer obsessed with big logos, which is particularly evident in first-tier cities, and now they want to buy cortex handbags that are more in line with their own personal taste” Jonathan Seliger CEO of Coach in an interview with China Business News

In the September issue of Luxury Insights China, we talked about the poor results of Burberry and the contradiction with good results from brands such as Prada and Hermes. October was a month of much of the same, and more light was thrown onto the Burberry issue. We have spoken more than once that Chinese luxury consumers have become more sophisticated, especially in tier one cities, so brands are now becoming lower key, and in many cases expanding and reformatting their existing stores, to tell their story and demonstrate greater exclusivity.

Even a brand like Coach, which has in the past been opening ten to fifteen stores a year for the past few years, is now changing its strategy to align it with consumer sentiment. It also thinks that consumers in T2 and T3 cities will become sophisticated relatively quickly. Burberry on the other hand is sticking to its existing plans and expects to expand its footprint, and open at least ten stores a year, is it becoming to common as we suggested last month, and perhaps their results in China are telling them something? In October Burberry also announced that it would take back the distribution of its perfume brand from Interparfumes in May 2013.

Events

Chinese film and music celebrities have been wheeled out at events around the world by many brands including LV and Gucci, all creating good press back in China.

The Icons of Heritage a Gucci history exhibition was held in the Gucci store of Renhe Spring Department Store in Chengdu, having already been to Chongqing, Wuhan and Hangzhou in September. Prada held a party called Looking for the girls in a luxury property in Chongqing, and Dior held a perfume party in the Wangfujin department store in Chengdu.Hermes held a fashion show in Shanghai, and Aquascutum held their autumn/winter show in Shenyang.

Store openings

Louis Vuitton opened a flagship store in The MixC in Shenyang in Northeast China, and their first store in Shijiazhuang in Hebei province. Dior also opened its first store in The MixC in Shanyang, and their first jewelry store in China in the Yintai shopping mall in Beijing. Hermes completed the redesign and reopened its stores in the Hangzhou Tower and Plaza 66, and Coach opened a new store in the MixC in Nanning, the capital city of Guangxi Province.


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