China News Brief
    May 10, 2024

    Transaction-enabled Taobao Vision Pro set to launch; Dunhill debuts Fall/Winter 2024 collection in Shanghai; Miu Miu’s summer ad showcases rebellious fashion.
    A customer tries on Apple's Vision Pro at The Grove in Los Angeles, California, on February 2, 2024. Tabao's app can be used on Apple’s mixed-reality headset. Image: Getty Images

    Transaction-enabled Taobao Vision Pro set to launch#

    During a themed livestream yesterday held to promote  Taobao’s website upgrade, the platform’s website operations head, Kong Wu, announced that the official release of Taobao Vision Pro will offer full transaction capabilities. This follows the April release of a test version that led tech bloggers to post reviews highlighting its realistic immersive experience. Reports suggest that the official version of Taobao's Vision Pro is expected to launch concurrently with the domestic release of Vision Pro.

    Dunhill debuts Fall/Winter 2024 collection in Shanghai#

    On May 7, Dunhill hosted  its Fall/Winter 2024 collection preview at The Bund Source Number One in Shanghai, marking Creative Director Simon Holloway’s first visit to China since his appointment. Held in a former British Consulate building, the event showcased 15 new Fall/Winter outfits, blending a retro-modern vibe. Holloway drew inspiration from Dunhill’s archives and his experience tailoring for cultural icons like Truman Capote and Frank Sinatra, infusing the collection with a fresh interpretation of Hollywood’s Golden Age styles.

    Miu Miu’s summer ad showcases rebellious fashion#

    Miu Miu has released  a new summer collection advertisement, showcasing a rebellious and uninhibited fashion style. The campaign, shot by photographer Richard Kern, features a diverse cast of celebrities from various fields, including Chinese singer Lexie Liu, Angel Haze, Amelia Gray Hamlin, Jasmin Savoy Brown, and Emma Chamberlain. They model items from Miu Miu’s Spring/Summer 2024 collection. Set in a New York apartment, the ad brings to life everyday scenes featuring items such as light spaghetti strap dresses, floral dresses, knitted Polo tops, and tennis skirts.

    Crocs’ Q1 revenue soars in China#

    Crocs on Tuesday released  its Q1 financial report for 2024, showing a 6.16% YoY increase in revenue to $939 million and a 1.95% rise in net profit to $152 million. Crocs experienced a triple-digit growth in revenue in the Chinese market during the first quarter of 2024, outperforming its previous quarter’s growth, which exceeded 80% in Q4 of 2023.

    Tapestry lowers sales forecast amid weak demand in China#

    Tapestry, the company behind Coach and Kate Spade, has lowered  its annual sales forecast after third-quarter revenues fell short, reflecting weaker demand in North America and China. The firm also adjusted its fourth-quarter profit expectations downward, with shares dropping 2%. Despite reduced discretionary spending and slow recovery in China, Tapestry managed to exceed profit expectations due to high-margin full-price sales and reduced costs. Tapestry now anticipates fiscal 2024 revenue to surpass $6.6 billion, slightly below its previous forecast, while maintaining its profit outlook.

    US FTC blocks Tapestry-Capri merger#

    US luxury group Tapestry’s merger with Capri Holdings has been blocked  by a complaint from the Federal Trade Commission, concerned about the risk of a handbag monopoly. Tapestry has hit back and accused the regulator of inconsistency, given it authorized a similar merger in the jewelry sector when LVMH bought out Tiffany’s. Tapestry is urging the government to clarify how it defines the market and claims that the case misunderstands how the fashion industry operates. The parties are scheduled to have a virtual meeting on May 13.

    Salvatore Ferragamo’s Q1 revenue dips 16.6% amid China challenges#

    In the first quarter, Salvatore Ferragamo’s revenue  declined by 16.6% due to challenges in the Chinese market and a slowdown across all regions and channels. CEO Marco Gobbetti reported total revenues of 227 million euros ($242.89 million), below the expected 237 million euros ($253.59 million). Despite a slight dip in April’s direct-to-consumer sales, the trend from February to April was stable. Gobbetti emphasized ongoing difficulties in China due to economic concerns but noted improvements in Europe's direct-to-consumer sales. He remains focused on enhancing top-line performance without expecting further erosion in gross margin.

    Tod’s shifts focus to US market#

    Tod’s, known for its lagging profitability compared to rivals, plans  to boost US market sales and invest in marketing to enhance its image of sober elegance. The brand, which previously focused mainly on older consumers and quality leather products, faces the challenge of revitalizing its broader product range and retail strategy, including e-commerce and store concepts, amid a global luxury market slowdown. Tod’s also aims to expand its presence in the US and its clothing line, moving away from public market pressures to transform under private equity ownership.

    BYD targets Europe with budget-friendly EV#

    BYD plans to introduce  a budget-friendly electric vehicle to Europe, based on its Seagull model, targeting a price under 20,000 euros ($21,400). Michael Shu, BYD’s European managing director, revealed plans for a possible second assembly plant in Europe by 2025 during the Financial Times’ Future of the Car conference. This move aligns with BYD’s ambition to become a top EV producer in Europe by 2030. These developments coincide with increased Chinese investment in Hungary, highlighted during Chinese President Xi Jinping's visit, reinforcing Hungary's pivotal role in China’s European trade and investment strategy, particularly in EV and battery production.