Reports

    China News Brief
    January 15, 2024

    China's eases travel rules, Asia leads duty free rebound and more from Burberry, Chanel and Shein
    Jing Daily

    Asia Leads Global Duty-Free Shopping Recovery #

    December saw global duty-free sales surge by 130%, with Asia Pacific's 151% growth leading the rebound . Excluding Mainland China, this figure jumps to 198%. Hong Kong, Taiwan, and North East Asia were key contributors to the recovery. Japan ranked first among destination markets with a recovery rate of 231 percent, followed by South Korea at 106 percent. Europe also saw a notable recovery at 121 percent despite regional challenges. The worldwide sales in-store like-for-like recovery of Mainland Chinese shoppers reached 82 percent.

    China Eases Travel with New Immigration Policies #

    China's National Immigration Administration has introduced five measures to facilitate entry for foreign nationals , simplifying visa processes and introducing visa-free transit at major airports to encourage foreign entry, reflecting its commitment to boost business and international openness. These measures follow the recent easing of visa requirements for US travelers.

    Dubai Duty Free's Perfume Sales Hit Record High #

    Dubai Duty Free's perfume sales reached $374 million in 2023 , contributing to a record $2.16 billion annual revenue surpassing the pre-COVID 2019 record. However, the growth rate for perfumes was 20.3 percent, which was slightly lower than the overall business average of 24.1 percent. Despite a slight market share dip, the perfume category remains a top seller at DDF. Plans for refurbishments and improvements in retail operations are also on the horizon for the coming years.

    Burberry Lowers Profit Forecast Amid Luxury Market Slowdown #

    Burberry downgrades its profit outlook for 2024 , citing reduced luxury demand and disappointing holiday sales. The brand anticipates that its adjusted operating profit for the financial year ending March 30, 2024, will fall between $554.5 million and $621 million (£410 million and £460 million), well below its previous guidance. This downgrade follows a warning in November about lower full-year profits due to a global slowdown in luxury goods demand. Burberry's CEO, Jonathan Akeroyd, remains confident in the brand's repositioning under designer Daniel Lee, aiming for a £4 billion ($5.4 billion) revenue target. However, analysts express skepticism about this goal, and Burberry's share price closed down by 4.8 percent. The brand's future strategy under Lee remains a focus, despite market skepticism and a recent share price drop.

    Executive Shake-up at Chanel Amidst Market Challenges #

    Chanel experiences executive turnovers , including long-serving leaders, as it navigates a sluggish luxury market. The departures come under CEO Leena Nair's leadership and amid design changes following Karl Lagerfeld's passing.

    Shein's US IPO Faces Regulatory Hurdles #

    Chinese fast fashion brand Shein's anticipated US IPO is delayed , facing US regulatory scrutiny and Chinese regulatory compliance. The company aims for a $90 billion valuation while submitting an application to the China Securities Regulatory Commission (CSRC) in the same month, obliging the company to adhere to Beijing's new listing rules for Chinese firms going public overseas.

    Feng Chen Wang and Converse Launch New Chuck 70 Sneakers #

    The latest Feng Chen Wang x Converse collaboration  introduces a 2-in-1 low-top Chuck 70 sneaker. Featuring unique design elements, the collection will premiere at the Paris Fashion Week, symbolizing creative partnership.

    Gucci, under new artistic director Sabato De Sarno, unveiled its latest men's collection in Milan . De Sarno's appointment is part of Gucci's strategy to rejuvenate the brand, which recently faced a revenue dip. His debut follows a successful women's collection launch and marks a pivotal moment for Gucci amid a competitive Italian men's fashion scene.