Reports

    China News Brief
    June 27, 2024

    Adidas China confirms departures following corruption probe; Anta reveals China’s Olympic uniforms for Paris 2024; Coty's Marc Jacobs expands China presence via Sephora.
    People walk past an Adidas store at a mall in Beijing on June 16, 2024. German sportswear giant Adidas launched an investigation into alleged large-scale bribery in China after senior employees were accused of embezzling millions of dollars, the ‘Financial Times’ reported on June 16. Image: Getty Images

    Adidas China confirms departures following corruption probe#

    Adidas yesterday China announced the results of an investigation : the reported executives accused of corruption have left the company. The investigation revealed that one employee violated the company’s code of conduct during interactions with local suppliers and has since left the company. Additionally, another senior manager in the marketing department resigned due to not meeting the company’s leadership expectations.

    Anta reveals China’s Olympic uniforms for Paris 2024#

    On June 25, Anta launched the 2024 Paris Olympics Chinese sports delegation award uniforms  at Beijing Shougang Blast Furnace No. 3. The event featured sports stars showcasing the uniforms designed with classic Chinese motifs, including dragon scales and embroidery, under the creative guidance of Chinese film master Zhang Yimou.

    Coty’s Marc Jacobs expands China presence via Sephora#

    On June 25, Coty’s Marc Jacobs and beauty retailer Sephora announced an exclusive retail partnership  in China. Marc Jacobs fragrances will be sold exclusively through Sephora’s online and offline channels, including over 340 stores in mainland China, and their flagship stores on Tmall, JD.com, Sephora’s website, and WeChat mini-programs. To mark the occasion, Marc Jacobs will launch a new fragrance, Daisy Wild, next month.

    Nike revitalizes China strategy with Jordan Brand focus#

    Nike’s renewed focus on the Jordan brand  in China aims to revitalize its market presence amid challenges from local competitors and economic slowdown. The strategy includes a flagship store in Beijing’s trendiest area, featuring exclusive products like cashmere ponchos and limited-edition collaborations with local artists. Despite a decline in Nike’s overall sales share in China, the Jordan brand remains resilient, appealing to both older, affluent consumers and younger demographics through strategic partnerships with Chinese basketball stars and streetball tournaments. This approach underscores Nike’s strategic shift towards leveraging Jordan’s cultural appeal to reengage Chinese consumers and regain market share in the region.

    Qeelin reopens expanded Hong Kong flagship#

    Qeelin’s refreshed Hong Kong Harbour City store has reopened . On opening day, global brand ambassador Liu Shishi attended the ceremony alongside CEO Christophe Artaux and founder and creative director Dennis Chan for the ribbon-cutting. Harbour City, one of Hong Kong's largest shopping landmarks, hosts numerous renowned luxury brands. Located on the second floor of Harbour City Gateway Arcade, Qeelin’s boutique has expanded to include a VIP experience area and a high-end jewelry display section.

    BYD launches Seal EV in Japan, challenges local automakers#

    BYD launched its third electric vehicle  in Japan, the Seal EV, priced at 5.28 million yen ($44,760), making it BYD’s most expensive model in the country. This expansion could challenge local automakers already struggling against Chinese EV brands. Unlike in China, where BYD offers plug-in hybrids, it is only selling battery-powered cars in Japan. The Seal EV will be available in rear-wheel-drive and all-wheel-drive versions, both with an 82.56 kWh battery pack.

    Canada considers tariffs on Chinese EVs#

    Canada is tightening restrictions  on Chinese-made EVs to align with US trade policies. Finance Minister Chrystia Freeland announced a 30-day public consultation on imposing tariffs and revising EV incentives to protect Canada’s EV sector from China's state-directed overcapacity. This follows G7 pressure as the US and EU plan similar tariffs. Canada aims to prevent trans-shipment of cheap Chinese goods while facing domestic pressure to protect jobs. Environmentalists worry higher tariffs may hinder EV adoption. The Conservative Party supports the move, and it's unclear if tariffs will affect Tesla imports from China.

    Olympic swimmer stars in Boss’ new commuter collection ad#

    Boss unveiled its 2024 Fall Boss Performance  commuter series advertisement. Swimmer and world champion Wang Shun showcases various urban commuting scenes, integrating technological performance with Boss aesthetics, embodying a contemporary functional style. The ad highlights the new offerings of the Boss Performance commuter series.

    Chinese millionaires seen emigrating in record numbers#

    “Runxue” or “run-ology” is the study of escaping China and taking wealth with you. Record numbers of Chinese millionaires  and multimillionaires are expected to emigrate from their homeland this year, building on the record number who left last year, according to a report by Henley and Partners, a UK-based investment migration firm.

    Shanghai’s luxury property market defies national slump#

    Shanghai’s luxury real estate  market stands out amid China’s struggling property sector, with a $15 million penthouse and over 200 homes priced near $5 million selling out within hours of listing. Demand remains robust, particularly among wealthy Chinese from the Yangtze River Delta region, seeking secure investments amid economic uncertainties. Buyers view luxury properties favorably due to Shanghai’s financial hub status, limited supply, and discounts offered compared to existing options, highlighting a resilience not seen in other major Chinese cities.

    China’s FDI continues decline for 12th straight month#

    China’s foreign direct investment  (FDI) fell further in May, extending a streak of declines for the 12th straight month, official data showed. China attracted 412.51 billion RMB ($56.81 billion) worth of FDI in the January to May period, down 28.2% from the same period last year, the Ministry of Commerce said on June 21.

    Dubai tourism partners with Xiaohongshu for summer campaign#

    Dubai Tourism Bureau and Xiaohongshu's New Trend IP Bureau  have collaborated on a campaign titled “Discover Dubai in a New Way” for the summer. Travel influencers are invited to explore unique attractions in Dubai, while users can participate in activities from June 13 to July 12, sharing guides and enjoying discounts on hotels, shopping, and attractions. Participants can win prizes like Dubai flight tickets and hotel vouchers by joining the #DiscoverDubaiInANewWay challenge.

    Elaine Holt to lead Sotheby’s modern art push in Asia#

    Sotheby’s yesterday announced new leadership  for its Asia Art Division. Elaine Holt was appointed as Chairman of Modern and Contemporary Art and Vice Chairman of Asia. Her role begins with the opening of the new flagship gallery at Landmark Chater in Hong Kong. This appointment reaffirms Sotheby’s dedication to the modern and contemporary art market, which is increasingly popular among young collectors. Recently, there has been a notable rise in young buyers (aged 40 and under) participating in Sotheby’s modern art auctions.

    Luxury titan Arnault takes personal stake in Richemont#

    According to sources cited by Bloomberg, Bernard Arnault, Chairman of the world’s largest luxury goods group LVMH, has become a personal shareholder in Richemont , holding a minority stake. The scale of this stake increase is reported to be small and does not meet disclosure requirements, constituting a personal investment by Arnault outside of LVMH’s corporate activities. Currently, both LVMH and Richemont have declined to comment. Analysts suggest that this investment may reignite speculation about potential acquisitions among major luxury goods groups. Richemont, controlled by 74-year-old South African billionaire Johann Rupert, holds 51% of the voting rights and has emphasized in recent years its desire to maintain the group’s independence.