China News Brief
    January 25, 2024

    Tmall's promotes New Chinese Style for CNY, Chanel's China price raise rumours, Vestiaire's crowdfunding and more.
    New Chinese Style set to be all the rage this Lunar New Year with the likes of Tmall promoting the fashion trend

    Tmall promotes 'New Chinese Style' in Lunar New Year drive#

    E-commerce titan Tmall seized on Lunar New Year festivities to champion "New Chinese Style" in its latest Super Category Day campaign . With a rallying call of "When national style (guofeng) revives, New Chinese Style will surge," Tmall beckoned consumers to embrace heritage-centric trends, offering an enticing 20% discount for those indulging in this sartorial theme.

    Yaok Report: Chinese luxury goods consumption expected to grow by 12 percent this year#

    The Yaok Research Institute unveiled the "China Luxury Goods Report" on January 18, forecasting a 12 percent increase  in Chinese luxury goods consumption for the forthcoming year. After a robust rebound in 2023, which marked a triumphant return to a trillion RMB market size, the nation's luxury consumption is poised to mirror the global industry's growth rate. Notably, Chinese luxury purchases accounted for 22 percent of the global market, tallying up to 607.7 billion RMB ($95.33 billion) last year.

    Vestiaire Collective crowdfunds, with potential IPO ahead#

    The second-hand fashion marketplace Vestiaire Collective, buoyed by Kering's backing, embarked on a crowdfunding venture,  eyeing a stock market debut in 2025. The campaign, aimed at roping in a minimum of one million euros from individual investors, sets the stage for Vestiaire's leap towards profitability by year's end. With a valuation pegged at 1.1 billion euros, the company's shares are priced at 1.78 euros. This initiative underscores Vestiaire's commitment to engendering a robust rapport with its clientele, even as it navigates through a luxury sector slowdown.

    Chanel to rumoured to initiate another round of price increases in China#

    Chanel is reportedly planning a new round of price hikes in China , focusing on popular handbag collections like CF, boy bags, and WOC, with increases of up to 15 percent. Leaked price lists indicate that small CF handbags may approach 90,000 RMB ($14,159), while medium CF handbags could reach 89,500 RMB ($14,071), which will see prices of certain handbags escalate by 200 percent over nine years, is a deliberate stride towards aligning Chanel with the elite echelons of luxury brands, akin to Hermes. Concurrently, the brand has already implemented a 4 percent-5 percent uplift in its watches and jewelry prices since the onset of the year.

    Vision Pro sells out, scalpers mark up prices by 50% in China#

    The tech realm witnessed a frenzy as Apple's Vision Pro, despite its premium pricing, was snatched off the shelves within minutes of its pre-order debut on January 19. With the initial stock dissipating swiftly, Chinese consumers resorted to alternative platforms where agents levied a hefty 50 percent markup . The fervent demand hints at an impressive inaugural pre-order volume, projected to reach between 160,000 to 180,000 units over the initial weekend.

    Lululemon opens first APAC men's store in Beijing#

    Canadian sports lifestyle brand Lululemon recently opened its first independent men's clothing store  in the Asia-Pacific region in Indigo, Beijing. It is understood that since November 2014, Lululemon has begun to open separate men's clothing stores. Currently, men’s accounts for about 37% of Lululemon’s revenue. CEO Calvin McDonald has said that men’s sports shoes will be launched in the first quarter of this year.

    SK-II sales in Greater China plummet due to concerns about Japanese nuclear water pollution#

    On January 24, Procter & Gamble (PG) stated that in the fiscal quarter ending December 2023, sales of high-end skin care brand SK-II in Greater China fell by 34% . Some Chinese consumers have boycotted Japanese brands due to concerns about nuclear radiation contamination in their seas, despite international agencies declaring little to no risk. Procter & Gamble has issued statements allaying consumer concerns. SK-II's official public account previously stated that the factory and production line of SK-II "Fairy Water" are located on the shores of Lake Biwa, Japan's largest lake. It is also the only source of water quality for the brand's products, and there are no other production channels in the world.

    British designer brand Paul Smith closes all stores in Germany#

    After being in Germany for ten years, the British luxury brand Paul Smith plans to close all its stores  in Berlin, Hamburg, and Munich at the end of January. The closures were confirmed due to changing shopping habits influenced by the pandemic and the unprofitability of the brick-and-mortar stores despite their prime locations. In the future, the brand will continue to sell its products in Germany through wholesale distributors. In the 12 months ending in June 2023, Paul Smith's turnover increased by 7.7 percent to £212 million($278 million), with growth seen across all major channels.