Daily Brief

Trump-China Trade War Freeze Leaves Luxury’s Future in Limbo

December 4, 2018

TODAY’S TOP FIVE CAN’T-MISS STORIES

  • 1

    How China Is Planning to Rank 1.3 Billion People

    People may be denied basic services or barred from borrowing money. In Yiwu, a citizen with a low social credit score cannot stay in fancier hotels, buy real estate, purchase a luxury car or send their children to certain private schools. “Trust-breakers” face restrictions on employment including in finance, according to a 2016 government directive. Read more on Bloomberg

  • 2

    Luxury Leather’s Best-Kept Secret

    Spanish leather hub Ubrique is on a mission to extend its manufacturing services beyond tradiotional luxury labels to offer hand-crafted products to smaller premium brands. Read more on Drapers

  • 3

    Why Does Luxury Fashion Hate Chinese Consumers?

    In all of these cases, Chinese consumers–both in the mainland and abroad–have lashed out in anger at the offending brands. While racism in luxury fashion is as old as the industry itself, consumers are not letting brands get away with trafficking in racist stereotypes or systematically mistreating people of a particular ethnicity. They’re making their anger felt on social media. The D&G ad, which could have been a small gaffe in the past, has snowballed into viral scandal that has reverberated around the world. Reuters reports that the brand may lose as much as half a billion dollars in revenue as a result. Read more on Fast Company

  • 4

    German Carmakers Jump on Potential U.S.-China Tariff Truce

    BMW AG rallied the most in more than three years after U.S. President Donald Trump said China had agreed to remove painful tariffs on imported American-made cars shipped to the world’s biggest automotive market. Daimler AG and Volkswagen AG also rose sharply. Read more on Bloomberg

  • 5

    How Victoria’s Secret Conquered China

    But the brand’s trajectory in China is another story. In that country’s $25 billion lingerie market, Victoria’s Secret is gobbling up market share. A short stroll down Shanghai's major shopping thoroughfare of Huaihai Road, home to the brand's flagship, will invariably lead to multiple sightings of Chinese shoppers toting pink shopping bags emblazoned with the Victoria's Secret name. Dozens of stores have opened in the last two years, and online, it’s the fifth most popular women’s underwear brand on Alibaba’s Tmall, according to Bernstein. Read more on Business of Fashion