In “Chinese Whispers,” we share the biggest news stories about the luxury industry in China that have yet to make it into the English language. In this week’s edition, we discuss:
- Vogue China sign virtual KOL Noonoouri
- Prada will close its largest flagship store in Hong Kong
- Nielsen: 68 percent of consumers like to buy from domestic brands
Vogue China sign on virtual KOL Noonoouri – Fashion Business Daily
Vogue China recently announced that it will exclusively represent virtual influencer Noonoouri in all matters related to Greater China, including but not limited to Noonoouri’s operations, image management and creation, and all commercial management and negotiations. Noonoouri was created by Joerg Zuber, the art director of the creative agency Opium Effect, in late 2017. Ever since, she has collaborated with many esteem fashion houses, such as Dior, Marc Jacobs, Versace, and has grown into a fashion icon with over 307,000 fans on Instagram. This “out of box move” made by the prolific fashion magazine in China is a strategic one to take advantage of China’s celebrity economy, and a chance for Noonoouri herself to broaden her influence among the younger generation in China, especially Gen-Zs who are obsessed with the virtual world.
Prada will close its largest flagship store in Hong Kong – Winshang
Due to the continuous decline in-store foot traffic, the Italian luxury brand Prada will close its largest flagship store in the world, which is located on one of the most expensive retail streets in the world — Russell Street in Hong Kong, said landlord Early Light Group. The store’s seven-year lease will expire in June next year, and both parties have decided not to renew their contract.
This is the sixth store opened by Prada in Hong Kong and the largest — the 15,000 square feet space costs about up to 9 million Hong Kong dollars each month. Early Light Group said that after Prada’s departure, the store’s monthly rent will be cut by 44% to 5 million Hong Kong dollars per month and will accept smaller tenants.
Prada also admitted in the latest financial report that factors like Hong Kong’s undertrained retail environment and exchange rate swing have dragged down growth.
Nielsen: 68 percent of consumers like to buy from domestic brands – China Economic Times
Justin Sargent, president of Nielsen China, told the China Economic Times that consumers have grown increasingly rational, and value optimized pricing is the most important factor for consumers to choose domestic products. According to Nielsen’s recent report on Chinese consumer trends in the second quarter, 61% of consumers look for getting the most value through their domestic purchase. In the coming year, 33% of consumers will have a stronger purchasing tendency in pursuit of quality. 26% of consumers will choose cheaper products while ensuring basic functionality.