In this week’s edition, we discuss:
- Online users' reaction to Louis Vuitton's hire of a Shaman to control the weather conditions at its 2019 Cruise Fashion Show,
- Chanel's retail expansion in China, and
- The IPO plan of local fashion player Shanshan.
1. Online Community Reacts Negatively to Louis Vuitton's Shaman Hire - LadyMax#
Though Feng Shui is a big part of culture throughout China's thousand years of history, the country's consumers still felt deeply surprised, and to some extent, shocked, when Louis Vuitton reportedly hired a Brazilian Shaman to ensure the weather conditions were good to show its 2019 Cruise collection outdoors at the Fondation Maeght in France.
According to a report by domestic fashion outlet LadyMax on June 5, a number of online users called Louis Vuitton's act "fully ridiculous and extremely ignorant", while the majority of them sees it as a joke.
One Weibo user wrote, "now I understand why a Louis Vuitton bag is so pricey, they need to pay these shamans!", followed by another one who commented, "the wealthier a company is, the more concerned about Feng Shui they are."
It is worth being noted that it did not rain during the show on May 28.
Background#
According to Harper's Bazaar, this Brazilian shaman has served the needs of Louis Vuitton for the previous cruise shows in Rio de Janeiro and Kyoto. However, the brand paused him due to the huge expense. The decision to re-employ him was driven by its main competitor Christian Dior, which suffered from a rainstorm during its cruise show in France's Chantilly Stables on May 25.
2. Chanel Opens a New Retail Store in Beijing - Chanel WeChat#
As China's luxury market continues to show robust growth in recent quarters, a number of luxury brands have expanded their retail networks to meet the rising needs of consumers. On June 8, French luxury powerhouse Chanel announced the opening of a new store in the Guomao district, the center of Beijing's central business district. The new store will sell fashion apparel, watches and jewelry, as well as perfume and beauty products, the first of this kind for Chanel in China.
Background#
According to the latest report released by Bain & Company on June 7, the Chinese luxury market is forecast to grow by between 20 and 22 percent in 2018. The optimistic projection of the China market has given luxury brands confidence to expand in the country. In late May, Italian luxury brand Prada also launched three new stores in SKP Xi'an Mall.
3. Chinese Fashion Brand Shanshan Plans to Go Public in Hong Kong - Local Retail Observer#
According to Chinese retail news site Local Retail Observer, China's high-end menswear fashion brand Shanshan is reportedly planning to list on the Hong Kong Stock Exchange by the end of June and is seeking to raise up to 164 million yuan (25.6 million). The company said it would use the capital raised by IPO to expand retail networks and launch new logistics centers for the brand. It will start the roadshow and release its final prospectus next week.
Background#
Shanshan was founded by Zheng Yonggang in 1989 in Ningbo, China. The brand has quickly expanded and became one of the dominant players selling high-end menswear products. Ranking by the retail revenue, Shanshan is now the country's fifth-biggest menswear brand.
