China News Brief
    March 25, 2024

    Asia’s 1st Palazzo Versace luxury hotel underway; Businesses eye Hong Kong’s security law with caution; Kenzo unveils art event in 3 cities.
    Palazzo Versace palatial luxury hotel in Dubai, UAE. Palazzo Versace Macau. The inauguration ceremony for the first Palazzo Versace luxury hotel in Asia was held at the Grand Lisboa Palace Resort Macau on March 23. Photo: Shutterstock

    Asia’s 1st Palazzo Versace luxury hotel underway#

    The inauguration ceremony for the first Palazzo Versace luxury hotel in Asia was held  at the Grand Lisboa Palace Resort Macau on March 23. Daisy Ho, Executive Director of SJM Resorts, expressed enthusiasm for the hotel’s completion, marking a significant milestone for the Grand Lisboa Palace Resort. Donatella Versace, the brand’s Creative Director, joined Daisy Ho and other celebrities and executives for a red carpet interview session, showcasing the fusion of Italian fashion and Chinese elegance in the hotel's design. With its luxurious amenities and classic Milanese style, Palazzo Versace Macau promises a unique and sophisticated experience for guests.

    Businesses eye Hong Kong’s security law with caution#

    Hong Kong’s new national security law, which was recently approved by the legislature, has caused  concerns among global businesses in the financial hub. The law includes vague provisions related to state secrets and connections to foreign entities, prompting some corporations to update contingency plans and seek legal advice to mitigate political risks. Many companies are now treating Hong Kong similarly to mainland China in terms of data security, restricting information flow to teams in the region. Executives, who preferred to remain anonymous, expressed a lack of trust in the Hong Kong government, which they believe is influenced by China. The law, effective from March 23, imposes harsher penalties for crimes such as sedition and external interference.

    Kenzo unveils art event in 3 cities#

    Kenzo launched  the “Art of Brush and Ink” art check-in event in Shanghai, Beijing, and Shenzhen on March 22. The limited-time spaces are filled with hand-drawn camellia flowers, and visitors will be offered weekend-exclusive coffees and hand-drawn pattern stickers as perks. Participants are encouraged to find hand-drawn illustrations hidden in urban buildings or alleyways.

    On Running to open 1st Hong Kong flagship#

    On Running is set to open  its first flagship store in Hong Kong, China. The store is rumored to be located within the H Queen’s building in Hong Kong’s Central business district, spanning over 278.7 square meters, with a monthly rent of approximately $78,000 (HK$600,000). It’s reported that out of the 15 new stores opened by On Running last year, 10 were in China. Marc Maurer, co-CEO of the brand, revealed plans to add another 17 to 19 stores to its global network this year.

    Qeelin hosts jewelry exhibition in Hangzhou#

    Qeelin recently hosted  an exclusive high jewelry exhibition in Hangzhou under the theme “Dreaming in Qeelin’s Enchanted Garden.” Visitors journeyed through four thematic chapters, combining design and projection technology to create a dreamlike atmosphere. Qeelin’s global brand ambassador Lay Zhang, along with host and actress Shen Mengchen, and singer Shan Yichun, shared their insights on Qeelin’s aesthetics.

    Fred names China brand envoy#

    French jewelry brand Fred announced  actress Zhang Tian’ai, also known as Crystal Zhang, as its brand ambassador for China. Born in Harbin, Zhang, 25, is known for her roles in the movies The Legendary Sniper and I Belonged to You, as well as web-drama Go Princess Go.

    Peacebird posts profit surge#

    Chinese apparel company Peacebird has reported  its 2023 performance: revenue reached $1.21 billion (7.79 billion RMB), down 9.4% YoY, while net profit surged 127.1% to $65.94 million (422 million RMB). The company’s shift to a functional department system contributed to this growth. Tighter control on discounts and reduced expenses led to improved gross profit margin, reaching 54.1%.

    Lululemon sees China revenue leap#

    Lululemon released  its financial report for the fourth quarter and FY 2023 on March 22. For the 2023 fiscal year, Lululemon’s global net revenue was $9.6 billion, a year-on-year increase of 19%; net profit attributable to company shareholders was $1.55 billion, up 81.33% YoY. Focusing on the Chinese market, Lululemon’s mainland China business achieved a net revenue of $150.63 million (964 million RMB) in FY 2023, a year-on-year increase of 67%, marking the highest growth rate in nearly three years, with Q4 growth reaching 78%. By the end of the 2023 fiscal year, Lululemon had 127 stores in mainland China.

    Nike beats guidance on China revenue#

    Nike recently released  its financial report for the third quarter of the 2024 fiscal year, achieving a revenue of $12.4 billion for the quarter, slightly higher than last year and above the company’s previous guidance. Net profit decreased by 5% to $1.2 billion, surpassing analyst expectations. Of note is the growth in the Greater China region, with revenue reaching $2.08 billion, a 6% YoY increase, maintaining six consecutive quarters of growth. The Greater China region is the only region, apart from the North American market, to achieve profit growth in the third quarter, with revenue in North America reaching $5.07 billion, a 3% YoY increase.

    Valentino to install new creative team#

    Valentino announced  on Friday last week the end of its 25-year collaboration with creative director Pierpaolo Piccioli, revealing plans for a new creative team. Piccioli, who joined Valentino in 1999 after working at Fendi, became its sole creative director in 2016. He revitalized the brand with modern aesthetics, attracting a younger audience. In his statement, Piccioli expressed gratitude for the shared journey and legacy of love, dreams, and beauty at Valentino.