Tag: Luxury

5 Questions with: Claire Chung, GM of YOOX-NET-A-PORTER Group, China

With a career not only spanning, but creating global fashion e-commerce, Claire Chung is a renowned expert on Chinese and international retail, digital, fashion and culture.

Speaking 5 languages and having lived across continents, Claire was a pioneer in leading Chinese cross-border commerce, launching China’s first luxury multi-brand online fashion retailer. As VP of ShangPin.com, Claire forged epic deals, bringing global brands and western government entities into China with strategic partnerships.

In 2015, Claire moved into a newly created executive role at Net-A-Porter Group level, to expand all businesses in the China market. After the historic merger between Net-A-Porter Group and YOOX Group which created the world’s number one retailer in luxury, Claire was promoted to lead all of the YOOX-Net-A-Porter Group‘s businesses in China.

We met with Claire to hear her insights on the China luxury market.

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Exclusive: How Wendy Yu is Shaping Luxury Business & Cultural Exchange between East & West

Wendy Yu has been near and dear to the luxury world for some time now — as a patron, an investor, a business partner and a cultural tie between the East and the West. Yet her ambition didn’t end there, as demonstrated by the announcement of Yu Holdings’ establishment, investment in Mary Katrantzou, and an eye to expansive growth in 2018, somewhat commemorated with a glamorous Chinese New Year Dinner that was the talk of the luxury society.

The Luxury Conversation met with Wendy on a recent visit to Shanghai, to talk about Yu Holdings, how she had arrived at this point and what was in store for the future of Wendy Yu. Continue reading “Exclusive: How Wendy Yu is Shaping Luxury Business & Cultural Exchange between East & West”

5 Questions with Thibault Villet, Co-Founder & Chairman of Mei.com

With a career in China’s luxury world, Thibault Villet co-founded Mei.com in 2010, was the CEO and remains as the Chairman. Mei.com is now one of the largest luxury e-commerce platforms in China, having been acquired by the Alibaba group in 2015. It has partnered with thousands of top brands and with looks and products curated by stylists from luxury designer backgrounds.

Mei.com, in collaboration with KPMG, recently released the results of their survey of over 3,000 mainland China consumers (with a focus on the Millennial / non-Millennial divide), which aimed to improve understanding of their current and future shopping habits.

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5 Things British Brands in China Can Learn From Shanghai’s ‘Best of British’ Exhibition

Last week saw over 150 British brands and several thousand Chinese visitors attend the Best of British exhibition —organised by Media Ten — to network, connect, learn and strengthen partnerships between China and the UK.

The timing was perfect, with Xi’s announcement at the 19th National Communist‎ Congress, taking place in Beijing, that China was continuing to focus on “opening up” for business across the world.

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The Truth About Working with KOLs for Success in China

The KOL (key opinion leader) or influencer dynamic is a typical story of China taking something already in existence in the West and rapidly discovering new ways to create revenue out of it.

We dipped into the issue previously, with our piece on KOLs in China. Let’s go a bit further into what is becoming the top priority for any luxury brand in the China market.

If you’re into stats, then Boston Consulting Group (BCG) has millennials at 40 percent of China’s urban population between the ages of 15 and 70, statistising that the millenial bracket will perform 69 percent of consumption by 2021. If you’re in China, then you don’t need stats. You will have noticed all people of all ages glued to their phones at all times of day or night, whether in a car, a bar, or even in the cinema. You will have heard talk of almost nothing but shopping, dining, holidaying, car and home-buying.
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How Can British Brands Connect with China’s Luxury Consumer?

Five years ago in China, if you asked a consumer to name a luxury British brand they would have mentioned the likes of Burberry, Rolls Royce and Jaguar. Then, British brands equaled quality, heritage, and craftsmanship – but rarely implied innovation. How times have changed.

Today, ask luxury consumers that same question and the answers are surprisingly different, and refreshing. Jo Malone, Anya Hindmarch, Victoria Beckham, Matchesfashion.com, Strathberry, Charlotte Olympia, Sophia Webster, Belstaff – the list goes on! Today’s British luxury is young, cool, innovative and niche.

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KOLs in China: How to Craft Relationships for Returns

Is the selling power of China’s KOLs (Key Opinion Leaders) changing the nature of Chinese e-commerce marketing?

This past year has seen an explosion in KOLs moving from merely posting branded content, to now helping brands to directly sell product. Last week we saw a prime example of this shift in KOL power when Mini Cooper teamed up with Chinese fashion blogger Becky Li to sell 100 Mini Cooper cars. She leveraged her vast social media following to help the brand sell 100 cars in 4 minutes.

In this issue of The Luxury Conversation, we look at four recent examples of this influence-to-sales shift, and provide tips on how to get the best results from similar partnerships.

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How Brands Can Keep Up With China’s Luxury Travellers – the EASTs

With Shanghai hosting the 11th ILTM Asia (International Luxury Travel Market) this week, The Luxury Conversation takes a look at a growing group of sophisticated Chinese traveler. We call them the EASTs: “Experience and Adventure Seeking Travelers”.

The EASTs are forgoing snaps of the Eiffel Tower for hiking trails in Patagonia and off-piste skiing in Canada. These EASTs are young, interconnected via social media, and excited to flex their buying power on unique experiences.

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How are China’s Emerging Technologies Shaping The Future of Luxury?

Chinese consumers today spend over USD$750 billion online – more than the US and UK combined. China generates more e-commerce activity than any country in the world, but what is striking is how dramatically different China’s digital landscape has evolved compared to the West. From technology platforms and customer online behaviors to how consumers shop in digital marketplaces, China has evolved on its own.

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Korea: Politics vs. Luxury Business – Who’ll Win?

Over the last couple of weeks a lot has been said about the deterioration of China Korea relations. China is concerned by the South Korean government’s decision to host American THAAD anti-aircraft missile technology and have made their displeasure known by banning popular Korean cultural exports – including pop stars and soap operas – from appearing in China. So what exactly does that mean for those prized Korean brands, which have been enjoying rapturous success with Chinese consumers, both in China and with travelers to Korea?

Korean brands have enjoyed a major popularity surge among Chinese consumers in recent years, particularly among Chinese women who have embraced Korean skincare as being a suitable and affordable mid-range alternative to expensive foreign brands and lower-priced domestic brands.

According to the Korean International Trade Association, exports of skincare and makeup rose 45 percent last year to $3.97 billion; of that, China accounted for 37 percent, or about $1.45 billion.

Experts are split on whether the broader political schism between the two countries will impact on the desire Chinese consumers have cultivated for Korean beauty products.

Sunny Um, a research analyst with Euromonitor, said the implications for the Korean beauty industry could be significant and Korean companies could lose market share to their Chinese competitors.

“Global luxury giants’ investments in Korean beauty [companies] will also be discouraged, as their objective to capture the China market through the Korean companies won’t be fulfilled,” she said. “China has already started a stricter inspection process for South Korean beauty products, causing delays in product launches and supplies.”

Benjamin Cavender, a senior analyst at China Market Research Group, said he sees limited impact on Chinese consumers.

Korean Model – TLC.png

“Probably this will have the biggest effect on talent that previously had endorsement deals in China, but I’m not sure that it’s going to stop anyone from finding ways to watch Korean dramas online or from buying cosmetics products or electronics that they like,” Cavender said.

The tension is definitely having repercussions on tourism, and therefore shopping in Korea.

“Some of our clients have seen a significant drop in Chinese customers in the last couple of weeks, this has really affected their business,” said Chloé Reuter, Founder and CEO of Reuter Communications, an agency that helps luxury brands connect with Asia’s luxury consumer.

Last year, almost six million Chinese visited South Korea, a number that’s grown an average of 40.6 percent since 2012, according to Seoul-based think tank, LG Economic Research Institute. The estimated spend of these travellers was 12.58 trillion won ($10.6 billion), accounting for 0.8 percent of South Korea’s GDP.

Many experts are already predicting a significant fall in tourism from China to Korea in 2017, with Nomura forecasting five percent growth in Chinese tourist numbers to Korea this year, down from 12 percent year-on-year growth last year.

Much of this fall, however, can be attributed to the ban in low-cost (under RMB 2,000) tour packages implemented by China’s government last October. These tour packages were responsible for bringing in 20 percent of China’s group tourists to Korea and are generally focused on duty free shopping.

Korean cosmetics brands with high exposure to duty free shopping channels such as Amorepacific would be the most negatively impacted, Nomura said.

South Korea’s duty-free shops including Lotte Duty Free and Shilla Duty Free, which saw sales of 12.27 trillion won, or $10.6 billion, last year, will also experience a sharp drop in revenues if Chinese tourism declines as predicted.

Luxury

“The 2017 market expectation for duty-free revenue growth was somewhere around 15 percent, some who were bullish in their forecasts even anticipated 17 to 18 percent growth, and now it’s looking like single-digit growth. Some might even predict it to be minus growth,” said Kang Soo-min, a retail analyst at LIG Investment and Securities.

“This issue is not going to be resolved in a short period of time. This has been going on for more than six months now…[Companies should try to] find some other markets other than China, try to lessen the dependency on one single market.”

Among those firms dependent on Chinese consumers is Lotte Group, which has total sales of 30 billion won, or $2.6 billion, in China. The group confirmed in January that it will hand over a golf course in Seongju County to be used by the Korean government for THAAD deployment, in exchange for other land.

Since the announcement, Lotte’s products and Lotte Mart sections have disappeared from prominent Chinese e-commerce sites, including JD.com, Baidu Waimai and Meituan.

Conclusion

So what should Korean brands do in the meantime in order to minimize the damage? The best course of action is probably to keep their heads down and ride out the storm. Whilst the immediate impact may seem dramatic, we don’t believe that consumers will be permanently turned off from buying their favourite Korean brands any time soon. People will still need their K-Beauty and snail masks so we predict that we’ll see a pick up as soon as politicians have moved onto the next item.