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:
- Nasdaq-listed Chinese influencer agency Ruhnn was accused of misinformation
- Founder of Chinese Manufacturer Shenzhou International Group listed top rich in fashion on the Hurun’s 2019 rich list
- Miu Miu launches first WeChat Mini Program
Chinese Nasdaq-listed influencer agency Ruhnn was accused of misinformation – thepaper.cn
This past Wednesday, PR Newswire published a claim made by the investor rights law firm, Bernstein Liebhard LLP, which has filed a lawsuit against Ruhnn Holding Limited, the Chinese influencer agency that had its Nasdaq listing in March of this year.
The complaint wrote that the Company’s Registration Statement contained false and/or misleading statements and/or failed to disclose that: (1) at the time of the IPO, the number of Ruhnn’s online stores had declined by nearly 40%; (2) at the time of the IPO, the number of Ruhnn’s full-service KOLs had declined by nearly 44%; (3) as a result, the Company’s net revenues derived from its full-service segment had declined by 46% on a sequential basis; and (3) as a result, defendants’ statements about Ruhnn’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
According to Chinese media Lanjinger, Ruhnn responded that all the disclosed information by the company was completely legal. The company’s U.S. lawyer is currently looking into the issue, while the company is still under normal daily operations. The agency was most well known for backing one Taobao influencer, Zhang Dayi, who reportedly pulled in $46 million in 2016, surpassing Kardashian’s annual earnings, as estimated by Forbes.
Family of Chinese Manufacturer Shenzhou international group named top rich in fashion on Hurun list – Hurun
The Hurun Research Institute released the “2019 Hurun Report” in Shanghai on Thursday. The list shows that Jack Ma, who just retired from Alibaba, became China’s richest man for the third time with 275 billion yuan. Tencent’s Pony Ma’s wealth rose by 20 billion to 260 billion yuan and was listed second. It’s worth noting that the apparel industry only accounted for 3% of the total wealth on the list, with the Ma Jianrong family of Shenzhou International Group, a Chinese manufacture company that engaged in the manufacture of high-end knitwear on an OEM basis, coming out on top. The family’s wealth has risen by 20% to 60 billion.
Miu Miu launches first WeChat Mini Program – Miu Miu
Miu Miu has launched its first-ever WeChat Mini Program. With the release of the final chapter of a whimsical and surreal short film trilogy called Bags Don’t Lie, Miu Miu once again puts a spotlight on the bag Miu Confidential. The Mini Program, conceived as an online pop-up store, will hit live on October 14th. It’s designed contains dynamic visual elements and is intended to offer an unique luxury e-shopping experience.