De Beers unveils new boutique in Shanghai#
On May 21, De Beers unveiled its new boutique at Shanghai Grand Gateway 66. This boutique follows the global design concept of the brand’s flagship store on Old Bond Street in London. The space showcases the brand’s masterpieces and its unique heritage.
Hainan’s retail sales drop 5.7% YoY from January to April#
On May 21, the Hainan Provincial Bureau of Statistics reported that Hainan’s total consumer goods retail sales from January to April were $11.33 billion (78.04 billion RMB), a 5.7% decrease YoY. Retail sales of goods dropped 7.2% to $9.76 billion (67.21 billion RMB), while dining income rose 4.6% to $1.57 billion (10.82 billion RMB). April saw a decline in market sales due to the off-season in tourism, though basic necessity consumption and dining remained stable, with online retail growing strongly. Retail sales of clothing, shoes, and textiles fell 11.9%, cosmetics related to duty-free dropped 32.9%, and gold, silver, and jewelry decreased by 10.6% YoY.
Burberry launches bag campaign with Tang Wei#
Burberry released a new campaign for its Rocking Horse bag, featuring brand ambassadors Tang Wei and Jun Ji-hyun. The campaign also stars actress Asami Mizukawa, supermodel Lily Donaldson, and supermodel Nora Attal. Inspired by the reins of a horse, the leather bag is adorned with an embossed Equestrian Knight Device (EKD) logo on the back, and some styles feature the iconic Burberry check pattern.
NYX Professional Makeup closes Tmall Global, Taobao flagships#
NYX Professional Makeup, a mass-market cosmetics brand under the L’Oréal Group, yesterday announced the closure of its Tmall Global flagship store in China. Additionally, the NYX Professional Makeup official overseas flagship store on Taobao also issued a notice, announcing that it will cease operations on June 21, 2024, at midnight and will stop accepting new orders.
PDD Holdings beats Q1 revenue estimates#
PDD Holdings beat first-quarter revenue estimates, driven by its international site Temu and the popular Chinese platform Pinduoduo. Revenue surged 131% YoY to 86.81 billion RMB ($11.99 billion), surpassing the anticipated 75.66 billion RMB. Net income rose to 28 billion RMB ($4.06 billion), with EPS of 20.72 RMB ($3.01), well above forecasts. Despite a 194% increase in costs due to higher fulfillment and operational fees, PDD’s shares climbed 5.7% in pre-market trading. Competitors Alibaba and JD.com also reported strong revenue. Temu’s significant advertising spend and compliance issues in the EU were noted, but it remains committed to adhering to local regulations.
VF Corporation reports 13% YoY revenue dip, stock price tanks#
VF Corporation, which owns Vans, The North Face, and Timberland, reported a 13% YoY decline in revenue to $2.4 billion for the fourth fiscal quarter ending March 30. The net loss widened from $214.9 million in the same period last year to $418.3 million. By brand, The North Face’s revenue decreased by 5% YoY to $814 million, Vans dropped 26% to $631 million, and Timberland and Dickies recorded declines of 14% and 15% to $342 million and $162 million, respectively. Other brands, including Supreme and Icebreaker, saw a 3% YoY drop to $424 million. Following the earnings release, VF Corporation’s stock price fell by 11.3% to $10.94.
Chinese startup FancyTech wins LVMH innovation award#
The eighth LVMH Innovation Award ceremony was held yesterday at Pavilion 1 of the Viva Technology exhibition, 1 Place de la Porte de Versailles, Paris, France. The award’s host, LVMH Group, announced that the Chinese startup FancyTech had won the 2024 LVMH Innovation Award. FancyTech is a platform that uses generative AI to create videos from 3D product models and creative briefs. In addition to the grand prize, FancyTech also received the Immersive Digital Experience Award.
Dolce & Gabbana USA sued over NFT collection’s 97% value loss#
Dolce & Gabbana USA is being sued by a customer, Luke Brown, who claims the NFTs he purchased for $6,000, which included outfits for the metaverse, lost 97% of their value due to the company’s mishandling. The NFTs, marketed as offering digital, physical, and experiential benefits, were to be bought and sold on the Ethereum blockchain. However, the delivery was delayed, and the digital outfits arrived 20 days late, usable only on a scarcely populated metaverse platform, and remained non-functional for an additional 11 days due to a lack of prior approval. Brown alleges that Dolce & Gabbana’s standard practice is to promise and fail to deliver, then abandon their projects. He filed the lawsuit on behalf of a proposed class of purchasers, also naming the NFT marketplace UNXD as a defendant. Neither Dolce & Gabbana nor UNXD responded to requests for comment.