In “Chinese Whispers,” we share the biggest news stories about the luxury industry in China that haven’t yet made it into the English language.
In this week’s edition, we discuss:
- Chinese fashion company Semir to acquire American luxury brand Jason Wu,
- Hermès‘ upcoming Chinese e-commerce store, and
- Dior’s new ad on millennial-focused social media app Douyin.
1. China’s leading apparel maker to purchase an 11-percent stake in the parent company of Jason Wu brands – Jiemian
Semir Garments, a well-known Chinese apparel company, will invest in the parent company of the American luxury brand Jason Wu, according to a public statement Semir released on September 14.
Semir plans to pay approximately $5 million (RMB 34.3 million) for 7.1 million shares in Jason Wu. Upon completion of the deal, Semir will have a seat on the board of the company and set up a joint venture that holds exclusive business rights to Jason Wu brands in China.
2. Hermès to launch its Chinese e-commerce store on October 17 – China Texnet
French luxury powerhouse Hermès will debut its first e-commerce store in China on October 17, offering a variety of items–excluding Birkin and Kelly handbags–to the country’s digital luxury shoppers.
The company just posted its first-half 2018 earnings results this week. The Asia-Pacific region has become responsible for about 35 percent of worldwide sales of Hermès bags, scarves, leather goods, fashion, etc.
3. Dior released a new ad on Douyin to promote Saddle bag – LadyMax
Christian Dior has become the first high fashion luxury brand to place a campaign ad on China’s hip short video app Douyin–a platform that intrigues Chinese post-’95 generation shoppers. Dior’s Douyin video promotes the brand’s iconic saddle bag, which was relaunched in late July, featuring brand ambassador Angelababy showcasing the product in style.
The explosive popularity of Douyin has led many luxury brands to consider if they need to jump on the bandwagon. Previously, American affordable luxury label Michael Kors used the platform for marketing initiatives.