Reports

    China News Brief
    July 08, 2024

    Burberry to cut jobs amid profit decline; Wuhan’s new SKP mall brings 200 new brands to the city; Dior launches Qixi Festival pop-up in Beijing.
    People visit Burberry's booth at the 3rd China International Consumer Products Expo at Hainan International Convention and Exhibition Center on April 12, 2023 in Haikou, Hainan Province of China. Image: Getty Images

    Burberry to cut jobs amid profit decline#

    Burberry, facing significant financial challenges, is preparing to cut a substantial number of jobs as part of a cost-cutting initiative  following a steep decline in profits and stock market value. The luxury fashion brand, which has seen its market value drop by over a third since the beginning of the year and risks losing its FTSE 100 status, announced restructuring plans via Zoom in late June. Approximately 400 jobs are at risk in its UK offices, with a 45-day consultation period underway. Despite a 36% YoY decline in annual profits to 418 million British pounds ($536 million) and a 4% drop in sales, Burberry has not confirmed the exact number of job losses. CEO Jonathan Akeroyd acknowledged the difficulty of executing the brand’s strategy amid challenging luxury market conditions.

    Wuhan’s new SKP mall brings 200 new brands to the city#

    Wuhan SKP held a pre-opening mobilization meeting on July 3, and announced its trial operations  will start July 13. Located in Hankou’s Han Street area, the new SKP spans 200,000 square meters, with 150,000 square meters of retail space. It’s Beijing Hualian Group's fourth SKP nationwide, featuring over 1,000 international brands across beauty, fashion, jewelry, watches, and home goods, including 200 new to Wuhan. SKP-S aims to cater to young trendsetters.

    Dior launches Qixi Festival pop-up in Beijing#

    During this year’s Qixi Festival, Dior inaugurated the Dior Amour pop-up store  in Beijing, emphasizing the sentiment of “Je vous adore” (I love you). The store features the new Dior Amour limited series, which integrates handwritten typography with red heart motifs. This collection celebrates love through Dior’s craftsmanship and design across handbags, dresses, jewelry, and accessories, evoking a sense of warmth and emotion.

    Cartier’s Trinity 100 exhibition debuts in Shanghai#

    On July 4, the Cartier Trinity 100 themed exhibition, Century of Classics, Eternal Style, opened its global premiere  at the West Bund Art Center in Shanghai. This exhibition pays homage to Trinity’s century-long journey through creative displays, showcasing the evolution of its classic design and style. Following its Shanghai debut in July, the Trinity 100 exhibition will travel to Singapore, Tokyo in Japan, and conclude with a closing celebration in the US.

    L’Occitane names Gong Jun as hair care envoy#

    L’Occitane announced Chinese actor Gong Jun as brand ambassador  for its hair care products on July 5 and simultaneously introduced the new Volume Spray. The product aims to address six scalp issues by combining botanical oils with prebiotic extracts.

    Shiseido to produce, market Max Mara perfumes globally#

    Max Mara is licensing its new fragrance line  to Japanese cosmetics group Shiseido. The two companies announced an exclusive, long-term worldwide licensing agreement for the development, production, marketing, and distribution of Max Mara’s perfumes, managed by Shiseido EMEA under new CEO Alberto Noé. Shiseido EMEA has previously seen growth in the fragrance category with brands like Issey Miyake and Narciso Rodriguez.

    Affluent Chinese women drive tourism growth: Report#

    Chinese women play a pivotal role in travel decision-making , accounting for 70% to 80% of travel choices and comprising nearly 60% of Chinese tourists, with China regaining its status as the top spender on international travel in 2023, according to the recently released China’s Women in Charge report. Empowered by increased economic status, affluent Chinese women see travel as a symbol of independence. The report presents insights from 800 high-value Chinese female travelers across major cities.

    BYD to build $1B plant in Turkey, bypassing EU tariffs#

    Turkey is set to announce a $1 billion deal with BYD to build a plant  in Manisa, enhancing the Chinese carmaker’s access to Europe amid new EU tariffs on Chinese EV imports. President Erdogan will reveal the agreement, which benefits from Turkey’s customs-union with the EU. Domestically, EVs are gaining popularity, accounting for 7.5% of Turkey's car sales last year. Turkey reversed plans for a 40 percent tariff on Chinese vehicles to encourage investment, following Erdogan's talks with President Xi Jinping.

    Geely’s NEV sales surge 126% in 1st five months#

    Geely Automobile Holdings reported impressive financial results  for Q1, with revenue up 56% YoY to 52.3 billion RMB ($7.34 billion) and net income more than doubling to 1.56 billion RMB ($246.84 million). The company’s total vehicle sales grew by over 45% YoY to 789,645 units in the first five months, driven by a 126 percent increase in sales of new energy vehicles (NEVs) to 254,226 units.

    Urban Revivo opens flagship store in Kuala Lumpur#

    Chinese fashion retailer  brand Urban Revivo opened a flagship store at Pavilion Mall in Kuala Lumpur, Malaysia on 6 July, featuring over 1,000 fashion items including womenswear and menswear collections, and accessories. The store’s design includes warm ocher tones, curves, an art visual projection area, and a large LED screen.

    Mytheresa appoints new Greater China president#

    On July 1, luxury e-commerce platform Mytheresa announced the appointment  of Dede Chan Brignoli as President for Greater China, succeeding Steven Xu. Effective this month, she will oversee all consumer-facing operations for Mytheresa in the Greater China region. Brignoli brings extensive experience in the luxury industry, having previously served as head of e-commerce for Rimowa and Kenzo in China. Prior to this, she held positions at L’Oréal Hong Kong and DFS.

    Tennis fashion trend booms on social media#

    According to WeArisma data, the tennis fashion trend  has been on the rise since March this year, reaching its peak during Wimbledon in July. In May, global social media influencers and celebrities collectively posted over 4,500 tennis fashion-related posts, an 18% YoY increase. Data shows that a post by Vogue in April featuring actress Zendaya wearing Loewe tennis high heels generated $1.11 million in media value. Loewe, centered around the tennis fashion trend, created up to $6 million in media value.

    Shein considers Hong Kong dual listing amid London resistance#

    According to the Financial Times, Shein is facing resistance for its IPO in London  and is considering listing in Hong Kong instead. Despite a potential 50 billion British pounds ($60 billion) valuation in London, Shein encounters opposition from activists and weak investor support. Founder Xu Yangtian aims to complete the IPO by year-end and is open to a Hong Kong listing, though less enthusiastic. Shein may pursue dual listings in Hong Kong and London, having largely abandoned plans for New York.

    Jingxi adopts Pinduoduo-style model for shoppers#

    JD.com is ramping up efforts on its budget-focused platform Jingxi , targeting small-town markets with a direct control strategy akin to Pinduoduo’s model. The move aims to better serve price-sensitive consumers by managing operations, logistics, and customer service internally. Despite a slow start since its 2020 launch, Jingxi saw a significant boost during the recent 618 shopping festival, processing over 1 million orders in four hours. JD.com plans to expand Jingxi’s supplier network to over 10,000 factories by year-end.

    Hungary hosts EU-China tourism conference#

    The Europe-China Tourism Dialogue Ministerial Meeting  and Conference commenced in Budapest on July 4 under Hungary’s EU presidency. National Economy Minister Márton Nagy highlighted Hungary’s significant role in EU-China relations, emphasizing efforts to strengthen ties with the Far East. He noted projections indicating a substantial increase in Chinese tourists visiting Europe in the upcoming years.