The luxury sector is set to post double-digit growth this year to 191 billion euros driven by the appetite of Chinese consumers for top-quality goods, according to a study by Bain & Company released on Monday.
While “the global economic situation is difficult” the luxury sector “is in good health and is growing above all in Asian markets,” said Santo Versace, head of the Italian fashion house and the Altagamma Foundation of Italian luxury companies.
The growth forecast was revised up to 10 percent from 8 percent, but still falls short of the 13-percent growth the sector recorded last year. Continue reading →
L2, a company that conducts research on digital business innovation, has released a study on the most web-savvy designers.
Burberry, which this week reported a 30-percent revenue rise for the first half of the financial year mainly due to a boom in the Chinese market, came out on top — “proof that digital investments translate to shareholder value,” according to L2.
Judging from its analysis, it is safe to say that those brands that connected the dots between social media and e-commerce fared best in the ranking. Continue reading →
Thousands of rich Shanghai residents have turned China’s most cosmopolitan city into the luxury capital of a country that is expected to become the world’s largest market for the sector between 2012 and 2015.
Shanghai topped China’s luxury market in 2010-11 with 18% of overall sales, ahead of Beijing’s 16% and the eastern city of Hangzhou, with its 13% share.
Second and third-tier cities in the country are still far behind, despite boasting a growing number of wealthy people, according to the World Luxury Association. Continue reading →
You don’t have to tell the people at Prada how valuable the Chinese market for luxury goods has become — the Italian fashion icon is so keen to set up a base out East that it is about to be listed on the Hong Kong stock exchange.
In fact, such has been the rush by the world’s luxury brands to get a foothold in China that there are, apparently, little to no spaces left for them in the malls of the country’s largest cities.
Bad news for the brands themselves — keen to get a slice of a market estimated to be now worth 84 billion yuan (nine billion euros) a year — but it is good news for China’s fast-growing number of online luxury-only shopping portals. Continue reading →
As the buying power of China’s masses continues to spiral upwards, more and more information is being gathered focusing not only on what they like to spend their money on but how they go about spending it.
According to local and international media, Tokyo‘s fashion business is gradually getting back to usual.
After the earthquake hit Japan on March 11, many brands including Louis Vuitton, Prada, and Cartier acted to bring some of their executive staff back to their home countries and closed local boutiques.
News outlets including WWD and Racked now confirm that on March 22, Louis Vuitton, Gucci, Dior, Chanel, and Forever 21 reopened their doors in the capital. Continue reading →
Louis Vuitton, Chanel, Gucci, and Burberry are testing the Chinese microblogging service Weibo to research their most promising market of the future from the inside.
The platform, which grows at 10 million users per month, has been attracting an elite of Western luxe brands over the past month, testing ideas for campaigns or other projects directly on their Chinese audience.
“You can immediately see how the market and your following will respond to something if you want to do research” said Leaf Greener, fashion editor of Elle China. Continue reading →
According to a Women’s Wear Daily report, young Japanese shoppers are less impressed by designer brands and more value-driven than their parents.
The consulting firm McKinsey & Co. already reported last July that “almost 30 percent of shoppers under 30 in Japan named price as the most important factor they consider when shopping, compared to just 21 percent for those over age 50″.
As a result of its economic collapse, Japan’s per-head spending has radically declined — a trend that will continue — with the luxury market being particularly affected, having shrunk by 23 percent between 2006 and 2010. Continue reading →
China will be the world’s biggest luxury goods market by 2020 as its economy booms and an emerging middle class spends a growing chunk of their cash on high-end items.
Over the next decade, Chinese consumers — including a surging number of billionaires — will account for 44 percent of global spending on goods such as bags, vehicles, watches, shoes and clothes, the report by brokerage CLSA said.
Luxury-brand awareness is growing among China’s super rich, who recognize 20% more of the lavish brands than they did last year, according to the Hurun Report.
The 2011 Best of The Best Survey, which interviewed 401 Chinese mainland millionaires, each with assets of more than 10 million yuan ($1.5 million), said the super rich in China are developing more sophisticated tastes in luxury products.
“Chinese entrepreneurs are getting more and more sophisticated, discerning and confident in their personal style, and what they aspire to, as they try to turn new money into old money,” said Rupert Hoogewerf, founder of the Hurun Report. Continue reading →
Chinese clothing retailer Trinity Limited said Wednesday it has agreed to buy the Cerruti luxury fashion and perfume brand for a maximum of 70 million dollars.
Trinity Limited said its purchase of Cerruti Holdings “fits in with the Group’s strategy to own intellectual property rights or take on very long term licenses in high-end to luxury menswear brands with heritage.”
Cerruti has been owned since 2006 by MatlinPatterson, a firm which specialises in turning around loss-making companies. Continue reading →
On Monday, November 22, Gucci hit the 3 million fan mark on Facebook. The Italian label may soon surpass Burberry, which boasts 3.2 million fans, as the most widely followed fashion brand on the social networking site.
Gucci’s Facebook milestone follows hot on the heels of the announcement made by Burberry on November 19 that it had broken the 3-million-fan mark.
Just this past weekend, Facebook EMEA Vice President Joanna Shields had proclaimed the UK luxury label as the “most widely followed brand on Facebook.” Continue reading →
China’s ever increasing economic clout has again been reflected in a survey on consumer tastes in luxury goods which has shown the nation not only knows what goods it wants, it most certainly now has the means by which to buy them.
A report released this week by Bain & Company has claimed China is now the fastest-growing consumer of leather goods and jewelry worldwide.
Its overall luxury market has grown 23 per cent this year, meaning it’s on target to reap some 84.3 billion yuan (9.2 billion euro).
But what the world really wants to know is what are the Chinese after. According to this report, Louis Vuitton, Chanel and Gucci are the most lusted-for brands. Continue reading →
Hermes rejected on Wednesday “an attack” on its capital by luxury goods giant LVMH, sounding the start of what could become a bitter battle for control of one of France’s most iconic brands.
The head of LVMH, Bernard Arnault announced he had bought 17 percent of his rival Hermes, insisting that this does not herald a hostile takeover but that he simply wanted to become a “friendly” long-term shareholder.
“If you want to be friendly, Mr Arnault, you should withdraw,” retorted Hermes executives Bertrand Puech and Patrick Thomas. Continue reading →