Welcome to Jing Daily’s China Luxury Brief: the day’s top news on the business of luxury and culture in China, all in one place. Look below for the top industry news from January 30, 2014.#
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Today’s stories:#
This Week In Digital Luxury Marketing: Chinese New Year Beauty Edition#
“A roundup of ongoing Chinese New Year campaigns by beauty and cosmetics brands through January 30, featuring Lancôme, L’Occitane, Sephora, Olay, and Clarins.”
Spring Festival Spotlight | Year Of The Horse Luxury Gifts#
“From handcrafted French crystal to premier headphones, brands on all ends of the luxury spectrum have been promoting special-edition gifts for the year of the horse.”
What we’re reading:#
Diageo To Cut Costs By £200m As China Growth Slows#
“Sales in emerging markets were up by only 1.3% overall, it said, impacted by weakness in China and Nigeria, although the company said that emerging markets are still 'very attractive' for his company."
[BBC]
Gold Horses Boost Chinese Jewelers As Bullion Slumps#
"The magnitude of the gains in sales and share prices last year may temper returns in 2014. Chow Tai Fook, the world’s biggest jewelry chain by market value, trades at 16 times estimated earnings, compared with 9.7 times for Hong Kong’s Hang Seng Index. The multiple for Shanghai-based Lao Feng Xiang is 18 times, versus 7.9 times for the local gauge.”
Female Fashion Addicts Change China’s $19 Billion Market: Retail#
“While women have long dominated luxury shopping globally, they’re just now catching up with men in China, who historically had greater purchasing power and accounted for most business-related gift giving. Companies from Chanel to LVMH Moet Hennessey Louis Vuitton SA (MC) are stepping up to meet demand from the country’s new breed of female 'fashion addicts,' dedicating more floor space to women’s wear amid a crackdown on expensive gifts such as watches.”
There's A Link Between China's Luxury Crackdown And TWE's Profit Downgrade#
"As stated at TWE’s Annual General Meeting in October 2013, the Company was observing signs that the well documented government austerity measures in China were impacting consumer demand for premium wine. The impact on TWE has since intensified, resulting in a reduction in volume."
Virgin Galactic Bans Chinese Nationals From Space Flights Over Espionage Fears#
"The news certainly deprives Virgin Galactic of access to a huge potential market of wealthy Chinese businessmen willing to pay the $250,000 (£151,000) ticket price for a space flight, but the company might also have more substantial problems."
Hong Kong Is World’s Top Travel Destination#
"Hong Kong drew 23.8 million visitors in 2012, outpacing Singapore (21.3 million) and Bangkok (15.8 million), market-research firm Euromonitor said in its 'Top 100 City Destinations Ranking' report released this week. The firm analyzed various travel data, including government statistics and airport arrivals, to determine its list for 2012, the most-recent year for which figures are available."