China News Brief
    February 19, 2024

    LV's China price hikes, OTB earnings, Spring Festival tourism flourishes and more from Coach, Jason Wu and General Motors
    OTB Group, owners of Diesel, Marni and Maison Margiela, reported a significant 2023 financial boost, with revenues hitting €1.9 billion

    Louis Vuitton's price adjustments in China

    Louis Vuitton will adjust prices for select products in China from February 19th, averaging a 6% increase.  The Carryall handbag's price will rise from 20,500 RMB ($3218.5) to 21,500 RMB ($3375.5). Jean-Jacques Guiony of LVMH stated that 2023 wouldn't see a uniform global price hike, but regional adjustments would reflect inflation and cost changes. This third price rise in China within a year highlights LV's responsive pricing strategy to market shifts.

    OTB's 2023 Financial Highlights

    OTB Group, owners of Diesel, Marni and Maison Margiela, reported a significant 2023 financial boost, with revenues hitting €1.9 billion  ($2.13 billion), a 7.2% increase from the previous year. Net sales rose 12.4% to €1.8 billion ($2.02 billion), driven by a 33.8% surge in direct sales, notably with China's revenue jumping 74%. Maison Margiela and Jil Sander shone brightly, and Diesel reversed its fortunes with a 13.1% revenue rise. Japan also saw a substantial 19.4% growth, reinforcing OTB's market leadership.

    Jason Wu x Crush Collection collaborate

    Crush Collection and Jason Wu unite  for a premium cashmere knitwear line, blending modern style with traditional craftsmanship. Sourced from Mongolia and treated for a mohair-like feel, the collaboration merges Crush founder Vivian Chang's effortless aesthetic with Jason Wu's detailed craftsmanship and style. This Asian alliance underscores quality and cultural heritage, modernizing traditional techniques for contemporary fashion.

    Coach's virtual journey campaign

    Coach's new "Find Your Courage" campaign brings audiences into a virtual world  highlighting authenticity and self-expression. Featuring virtual KOL Imma and real ambassadors like Lil Nas X and Camila Mendes the campaign showcases the Spring collection in a digital setting. Directed by Vallée Duhamel and shot by Charlie Engman, it encourages embracing diverse identities. Creative director Stuart Vevers and global CMO Sandeep Seth emphasize the campaign's challenge to traditional views, blending American style with innovative CGI.

    Hong Kong and Macau: tourism triumph

    The Spring Festival period saw Hong Kong and Macau emerge as beacons of tourism recovery. Hong Kong attracted over 1.25 million mainland Chinese visitors , buoyed by events like the Tsim Sha Tsui Flower Float Parade and Victoria Harbour Fireworks Display, which alone spurred an 80,000 visitor increase. Meanwhile, Macau's daily visitor numbers neared pre-pandemic levels , with a 26 percent rise in mainland Chinese tourists compared to 2018.

    China's tourism booms at Spring Festival

    China's Spring Festival holiday witnessed a significant uptick in domestic tourism, with 474 million travelers marking a 19.0 percent increase  from 2019's comparable period. Tourism expenditure reached 632.69 billion RMB ($98.51 billion), up 7.7 percent, despite a slight dip in per capita spending to 1335 RMB ($208.26). This resurgence underscores a robust recovery trajectory in tourist activity, reflecting the sector's vitality and the public's eagerness to explore amidst ongoing global challenges.

    General Motors pivots China strategy to luxury

    General Motors Co. is poised for a strategic pivot in China , shifting focus towards luxury vehicles amid a challenging market landscape. CEO Mary Barra underscored the need to reverse the brand's declining sales and market share, signaling a departure from GM's broad-based product approach. This reevaluation aims to capitalize on the market's growing appetite for premium vehicles, marking a significant recalibration.