In “Chinese Whispers,” we share the biggest news stories about the luxury industry in China that haven’t yet made it into the English language.
In this week’s edition, we discuss:
- Marni’s new pricing strategy in China,
- Ermenegildo Zegna‘s global brand ambassador, and
- LVMH-owned Loro Piana’s plan to open a sheep farm in Inner Mongolia.
1. American luxury brand Marni announced to cut retail prices in China – Marni China
Marni announced on September 19 it has cut prices by an average of 5 to 10 percent in China’s retail stores, aiming to narrow the price difference between China and overseas markets. The move came after many luxury players including Louis Vuitton, Gucci and Burberry dropped retail prices in the summer.
According to the brand’s press release, Marni will continue adjusting prices going forward so as to facilitate the brand’s expansion in the mainland market. Since earlier this year, Marni has opened 11 womenswear boutique stores in major Chinese cities. It also collaborates with Alibaba’s Luxury Pavilion platform and has recorded positive performance.
2. Hong Kong singer William Chan was named global brand ambassador for Ermenegildo Zegna – Ermenegildo China
On September 20, the Italian luxury menswear brand Ermenegildo Zegna officially announced William Chan, a well-known singer and actor from Hong Kong, would become its global brand ambassador. Along with the announcement, the brand unveiled a new capsule collection “Ermenegildo Zegna XXX,” which is exclusively available for Chinese consumers to purchase through its WeChat mini-program.
3. Loro Piana plans to open a sheep farm in China’s Inner Mongolia – Jiemian
The Italian luxury cashmere brand Loro Piana, which is owned by the luxury conglomerate LVMH, has announced to build a new sheep farming facility in China’s Inner Mongolia autonomous region. Fabio D’Angelantonio, CEO of Loro Piana, said the company has signed an agreement with the Chinese government and a third-party firm to establish a joint venture in the region. The new farm is expected to supply the brand with high-quality wool.