Dragon Boat Festival sparks travel, spending boom in China#
As the Dragon Boat Festival began on Saturday, China saw robust consumption growth with increased passenger trips, a strong box office, and heightened spending on festival-related products. China Railway expected 17 million trips on the peak day, up from 16.2 million last year, while the National Immigration Administration projected a 32.5% YoY increase in daily trips at Chinese ports. Trip.com reported a 20% rise in local tour bookings and a 50% increase in searches for outbound hotels, with Japan and Thailand as popular destinations.
Türkiye slaps 40% tariff on Chinese cars to protect domestic automakers#
Türkiye has imposed an additional 40% tariff on Chinese-made vehicles, effective July 7, to narrow the current account deficit and protect domestic automakers. This tariff, with a minimum of $7,000 per vehicle, applies to internal combustion and hybrid cars. The new tariff aims to address the declining share of domestic auto production and is expected to significantly increase Chinese car prices in Türkiye. Despite a recent market contraction, overall vehicle sales in the first five months of 2024 rose by 6% YoY, with Chery and MG among the major Chinese brands in the market.
Dior set to raise prices at the end of June#
According to sources, Dior will raise prices at the end of this month. The price adjustment will affect products including Lady Dior bags, D Joy, Booktote, Toujours, 30 Montaigne handbags, Caro, and Saddle bags. However, the specific increase rates have not been disclosed, and Dior has not yet responded to the news. It is reported that Dior already increased prices in the Japanese market on June 6, with adjustments ranging from 3% to 9%.
Foreign luxury car brands offer steep discounts in China#
In China, buyers are benefiting from significant discounts on foreign luxury automobiles, such as Cadillac, BMW, and Audi, as these brands contend with the rapid growth of domestic manufacturers like BYD. For example, the BMW i3 is offered at a 51% discount, though financing is required. Similar reductions apply to other models, like the BMW i5 and Audi Q4, while fuel-powered vehicles see lesser cuts. Cadillac dealers in Harbin have even launched a “buy one, get one free” campaign for specific models. This competitive pricing results from market pressures, with domestic brands gaining market share; Chinese-branded car sales increased by 11% in April, while sales of foreign luxury cars dropped by 12%.
Nobis takes on Canada Goose, Moncler with Chengdu flagship#
Canadian high-end down jacket brand Nobis is opening its first flagship store in China at Chengdu Taikoo Li in August. Since partnering with Ellassay in May last year, Nobis has opened stores in Beijing and Shanghai and launched online stores on Tmall and JD.com. The brand plans to expand to over 10 stores by 2025, focusing on top commercial districts in major cities. Nobis, founded in 2007, aims to compete with established brands like Canada Goose and Moncler in the Chinese market.
Louis Vuitton’s renovated Guangzhou boutique reopens#
Louis Vuitton’s newly renovated boutique at Guangzhou Taikoo Hui has reopened, featuring a brand-new space on the second floor. The store, with a warm color palette. From May 30 to June 13, the Wonderful Garden event will take place at Guangzhou Taikoo Hui’s online boutique, integrating healing plants into products like T-shirts, cushions, and scented candles.
Vivienne Westwood debuts 1st global outdoor store in Shenyang#
Vivienne Westwood’s first global outdoor store opens at Shenyang MixC. This boutique features a new retail concept, using raw and sustainable materials to create a DIY aesthetic, combined with the brand’s iconic elements to create a space that blends avant-garde and British fashion. The store offers a curated selection of ready-to-wear, accessories, and jewelry.
Gucci Kids, Louis Vuitton open new stores at Shenzhen Bay MixC#
Gucci Kids’ first store in South China has opened at Shenzhen Bay MixC. The ready-to-wear items, made from natural fabrics, are paired with chic Gucci shoes and cute accessories from the children’s series. Simultaneously, Louis Vuitton’s jewelry and watch pop-up store also debuted at Shenzhen Bay MixC, showcasing products like the Blossom jewelry series and Tambour watches, presenting a new fashion aesthetic.
Maison Margiela to open store at Shanghai Hongqiao Airport#
Maison Margiela will open a store in the atrium of Shanghai Hongqiao Airport’s T2 terminal, adjacent to the Lululemon store, with hoardings displaying images from the brand’s 2024 S/S collection. Many luxury brands have been expanding their retail networks in Chinese airports in recent years. Since 2019, LV has opened six airport stores in China, while Dior, Hermès, Gucci, and Prada are also accelerating their presence in domestic airports, expanding from Beijing, Shanghai, and Guangzhou to cities like Chengdu and Shenzhen.
Sino-Russian travel soars as geopolitical tensions reshape tourism#
As the world recovers from the pandemic, global tourism is experiencing a significant revival, led by a 392% surge in Chinese outbound travel in 2024. Popular destinations like Australia and Indonesia have seen massive booking increases, while travel between China and Russia has soared amid geopolitical shifts. This resurgence is revitalizing economies, with Chinese tourists driving growth through high spending. Destinations are enhancing marketing and infrastructure to attract these travelers. Concurrently, Russian airlines are increasing flights, particularly to China and the Middle East, adapting to changing travel dynamics.
Post-exam summer travel rush: Chinese outbound bookings surge#
According to data from Qunar, with the end of the college entrance exams, which took place June 7 and 8, the first wave of summer outbound travel bookings has emerged. The number of outbound flight bookings for the summer period (July 1 to August 31) has increased by 1.6 times compared to the same period last year, while ticket prices have dropped by about 20%. The top 10 popular international destinations for the summer are Malaysia, Japan, Thailand, the US, South Korea, Singapore, Australia, the UK, Indonesia, and Canada, according to Hualong.com.
Adidas China executive accused of corruption, workplace bullying#
A user on Xiaohongshu, claiming to be an Adidas Group employee, has accused Judy Li, former Senior Vice President of Marketing for Adidas China, of workplace bullying and accepting kickbacks. The whistleblower letter alleges that in 2023, Adidas’ marketing budget for Greater China was 250 million euros ($269 million), with widespread corruption involving sports marketing, brand activation, and more. The marketing team allegedly received 15% to 20% kickbacks and forged contract fees with celebrities and KOL agents. Despite a kickback scandal involving media partner GroupM, Li and her team concealed the issue. Previous marketing executives Christine Pan and Simon Wang were also dismissed for corruption. Adidas China has not yet responded to these allegations.
Wertheimer family’s fortune surges to $108B with Chanel dividends#
The Wertheimer family, owners of the French luxury brand Chanel, received $12.4 billion in dividends from the brand’s earnings over the past three years through their holding company in the Cayman Islands. They received $5 billion in 2021, $1.7 billion in 2022, and $5.7 billion in 2023. According to the Bloomberg Billionaires Index, these dividends increased the family’s net worth by 19% to $108 billion in the past year, an increase of about 26% from 2021. Analysts believe Chanel is one of the few luxury brands minimally affected by weak demand. Last year, Chanel’s revenue grew by 16% to $19.7 billion.
Estée Lauder finalizes $860M acquisition of The Ordinary’s parent#
Estée Lauder Group announced the completion of its acquisition of Deciem Beauty Group, the parent company of The Ordinary. The transaction involved a cash payment of approximately $860 million and was completed on May 31. Estée Lauder began investing in Deciem in 2017 and became its major shareholder in 2021. This acquisition marks Estée Lauder’s third investment in Deciem, bringing the total investment to around $1.7 billion. Deciem Beauty was founded by Brandon Truaxe in 2013, with most of its sales coming from the brand The Ordinary. Deciem also owns 10 other brands, including Hylamide, The Chemistry Brand, Stemm, and AB Crew.