China News Brief
    January 16, 2024

    Lululemon appoints a new Creative Director, BMW leads China luxury auto sales and more on LiNing, LV, Chow Tai Fook, DeBeers
    BMW leads in China's luxury car sales surge

    BMW Leads in China's Luxury Car Sales Amid Market Shifts #

    In 2023, the Chinese luxury car market saw increased sales despite price drops. BMW led the market,  with Audi showing the strongest growth at 13.5% and Mercedes-Benz at 1.77%. New energy domestic brands like NIO are gaining ground, with over 160,000 vehicles delivered in 2023. Luxury brands are expanding their electric vehicle range, intensifying competition for 2024.

    Lululemon Appoints Jonathan Cheung as Global Creative Director #

    Lululemon names Jonathan Cheung, a 30-year industry veteran, as its new global creative director . Cheung, who previously worked at Levi's and consulted for Gap, will lead design and creative strategy. JJ Collier joins as vice president of design for outerwear, bringing expertise from Ralph Lauren and VF Corp, focusing on sustainable design.

    Chow Tai Fook's Sales Surge with Gold Jewelry Demand #

    Chow Tai Fook Jewellery Group's sales jumped 46.1% in Q3 2023, driven by gold jewelry demand . Mainland China contributed 84.2% of sales with a 42.2% increase, while Hong Kong and Macau saw a 70.8% surge. The group's global diamond campaign and new collections have been well-received, especially during the festive season.

    JPMorgan Downgrades Li Ning's Profit Forecast #

    JPMorgan has lowered Li Ning's profit projections for 2023-2025 by 7% to 20% and downgraded its rating to "sell."  JPMorgan anticipates a decline in profits and price fluctuations before the release of the March earnings report. According to publicly available information, Li Ning's stock has fallen by 72 percent from its early 2023 price of 65.222 HKD ($8.36) per share, resulting in a market value loss of 120 billion HKD ($15.36 billion), making it one of the worst-performing components in the Hang Seng Index last year.

    Chaoyang District Plans Major Commercial Expansion in 2024 #

    Beijing's Chaoyang District aims to advance the "CBD × Sanlitun International Consumer Experience Area" in 2024 , following the revitalization of ten major commercial complexes in 2023. The district, home to a high concentration of luxury dining and hospitality, is pushing for further commercial development.

    LV's High-Priced Shopping Bags Spark Debate #

    LV's new Shopper and Sandwich handbags, resembling paper shopping bags but priced at $5,507.5 and $3,989.4 respectively, have stirred controversy.  Despite being made of leather, consumers question the value of these high-priced designs.

    De Beers Slashes Diamond Prices to Revive Sales #

    De Beers has cut diamond prices by up to 25% to stimulate sales  following a market slowdown. The diamond industry, impacted by inflation and competition from lab-grown diamonds, sees De Beers' aggressive pricing strategy as a response to excess stock and declining demand.

    Vivienne Westwood Reports Substantial Financial Growth #

    Vivienne Westwood Limited saw a 53% increase in revenue in 2022,  reaching $137.9 million, with gross and net profits also rising significantly. Boosted by strong store and e-commerce sales, the brand is looking to expand in China, the US, and Europe.

    Italian Court Intervenes in La Perla's UK Sale #

    An Italian court is seeking to stop the sale of La Perla in the UK  following a liquidation order due to unpaid taxes. The Bologna court's move to seize assets of La Perla Global Management Ltd. aims to protect the brand, with Italian unions advocating for government-supervised insolvency.