China News Brief
    May 15, 2024

    Florasis partners with LVMH’s DFS for Parisian debut; Ferrari’s Q1 profit soars despite 20% sales dip in China; Biden quadruples tariffs on Chinese EVs, solar cells.
    A product is displayed at Florasis' pop-up store on February 15, 2023 in Tokyo, Japan. Image: Getty Images

    Florasis partners with LVMH’s DFS for Parisian debut#

    Florasis is partnering  with LVMH group’s DFS to open its first European counter on September 1 at Samaritaine Paris Pont-Neuf. Located centrally on the beauty floor, the counter will debut the Nomadic Glam series inspired by Inner Mongolian culture. Gabby Chen, President of Global Business Expansion at Florasis, said the collaboration will enhance Florasis’ brand presence and appeal to luxury consumers. DFS Senior VP of Beauty, Amael Blain, noted that Florasis’ impressive cosmetics and packaging led to the partnership. Samaritaine will also offer masterclasses to VIPs on Florasis’ history and Chinese cultural influences, with plans to introduce Florasis to other DFS global stores.

    Ferrari’s Q1 profit soars despite 20% sales dip in China#

    On May 7, Ferrari reported  strong Q1 2024 results, with net revenue up 11% YoY to $1.74 billion (1.585 billion euros) and adjusted net profit rising 19% to $387 million (352 million euros). Adjusted EBITDA increased by 13% to $666 million (605 million euros), driven by effective pricing and product mix, particularly the limited edition Daytona SP3. Despite a 20% drop in China sales, Ferrari saw growth in other regions. The company expects 2024 revenue to exceed $7.04 billion (6.4 billion euros) and raised its adjusted EBITDA forecast to over $2.70 billion (2.45 billion euros). CEO Benedetto Vigna highlighted the success of Ferrari’s “value over volume” strategy, which analysts praised for its profit growth potential.

    Biden quadruples tariffs on Chinese EVs, solar cells#

    US President Joe Biden is raising tariffs  on $18 billion of Chinese imports, including electric vehicles and solar cells, to protect US jobs and strategic sectors. The tariff on Chinese EVs will quadruple to 100%, with additional increases on steel, aluminum, chips, and solar cells. Biden accused China of unfair trade practices and emphasized the need to prevent Chinese dominance in the EV market. Trade expert Brad Setser and union leaders supported the move, while business groups and former president Donald Trump criticized it. China condemned the tariff hikes, and Germany and the European Commission are also considering similar actions.

    Alibaba’s Q4 profit plunges 86%, shares slide#

    Alibaba Group reported  an 86% drop in Q4 profit due to changes in equity investment valuations, causing its US-listed shares to fall nearly 6% despite beating revenue forecasts. The company plans to upgrade its Hong Kong listing to a primary one by August, maintaining its New York listing. Amid cautious consumer spending in China, Alibaba’s focus on low-cost goods boosted Q4 revenue by 7%. Net income fell to 3.27 billion RMB ($452 million) from 23.52 billion RMB ($3.25 billion) a year ago. Domestic commerce revenue rose 4%, while international digital commerce grew 45%, despite increased losses. The cloud division saw significant AI-related revenue growth. Chairman Joe Tsai noted early signs of consumer confidence.

    Delvaux’s pop-up brings summer vibes to Beijing SKP#

    Delvaux’s pop-up store debuted  at Beijing SKP. The store’s design combines classic silhouettes with playful colors, creating a lively summer atmosphere and evoking a sense of bright vitality. It features the brand’s Spring/Summer 2024 new arrivals, including the Mutualism, Savoir-Faire, and Airess series, offering consumers a fresh and artistic experience. The pop-up runs May 1 to 30.

    Bottega Veneta wraps up city tour with Beijing Night#

    Bottega Veneta hosted  Beijing Night in China’s capital to celebrate the grand opening of its new Sanlitun store and unveil its 2024 pre-fall collection. The event marked the finale of the Bottega Veneta City Tour, which began earlier this year. This multi-city journey showcased the vibrancy of the Città handbag, embodying the brand’s adventurous spirit.

    Celine’s opens boutique at Beijing’s WF Central#

    The Celine boutique has opened  at Beijing’s WF Central, featuring the Celine Classic Collection 08. The collection introduces new styles to different silhouettes with refined fabrics and tailoring, exuding timeless French charm. The offerings include hoodies and T-shirts paired with jeans for a versatile casual look, accented with olive green scarves for a touch of elegance. The Teen Triomphe handbag completes the outfits.

    Valextra taps Chinese illustrator Shan Jiang for campaign#

    The Italian luxury leather brand Valextra recently launched  a campaign titled “Valextra, the Return Line of Love,” collaborating with world-renowned illustrators to depict the enduring essence of love and the brand’s classic identity. In this third chapter, Valextra invited Chinese illustrator Shan Jiang to portray the elegant styles of Valextra’s classic bags.

    China’s April PPI falls 2.5% YoY as deflationary pressures persist#

    On May 13, data from the National Bureau of Statistics showed  that in April 2024, China’s Producer Price Index (PPI) for industrial products fell by 2.5% YoY, while the purchase price index for industrial producers dropped by 3%. The declines narrowed by 0.3 and 0.5 percentage points from the previous month, respectively. On a month-on-month basis, the PPI and the purchase price index decreased by 0.2% and 0.3%, respectively. For the period from January to April, the average PPI decreased by 2.7% compared to the same period last year, and the purchase price index fell by 3.3%.