What Happened: For the launch of Paula’s Ibiza 2022 collection, Loewe creative director Jonathan Anderson hosted a party at Ibiza’s hippie market of Las Dalias, an oasis of colors and music. There, guests could try on Paula’s Ibiza inspired make-up, nails stickers, and tattoos to fully immerse themselves in the eclectic vibe. Attendants also got a sneak peak of the Spanish house’s latest project: a bath line consisting of a body scrub and cream. But the real star of the event was its perfume line, Paula’s Ibiza Eclectic, which has generated sales of $370,000 (2.5 million RMB) in mainland China in the two months since its release.
The Jing Take: According to Spanish publication Expansión, Loewe closed 2021 with double-digit growth reaching $470 million (3.17 billion RMB), and earnings increased eightfold compared to that of 2020. During the period, sales in Asia grew 55 percent compared to 2020. Although the LVMH-owned label is still small, it is showing huge potential to become the next cash cow for the conglomerate — with China playing a crucial role in this success.
Yet, actor Leo Wu, appointed in February 2022, is its only homegrown ambassador and the number of directly operated stores in China is limited to 32. This lowkey approach to the mainland seems unusual given the brand’s growing influence in the market. Still, as a sweet nod, the luxury house tapped Chinese illustrator Li Jiayi to create the campaign for this iteration of Paula’s Ibiza line. Additionally, Loewe activated ambassador aforementioned Wu, celebrities Li Xian, Wang Dalu, Liu Yu, and local media outlets to create buzz around the collection and ultimately reach domestic shoppers.
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Two months on, Eclectic set the mansion up to leverage China’s fragrance sector. An online survey by Chinese market research firm iResearch noted that fragrance ranked as a top category in fashion and beauty (excluding cosmetics and skincare) for Gen Z female consumers, coming ahead of clothing and accessories. Euromonitor International valued the Chinese fragrance market at $1.7 billion (10.9 billion RMB) in 2020, representing around 5 percent of the global market, and forecasts sales to reach $4.7 billion (30 billion RMB) by 2025. Rival luxury companies pushing scents should take note of these small inroads as they can yield big rewards.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.