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 stories for December 4, 2013.#
"This may sound like a grave situation for Burberry if it isn’t able to win in its upcoming battle. However, the challenges are likely not insurmountable for several reasons. First of all, the trademark only relates to leather goods, not the brand’s signature checked scarves and trench linings. In addition, fake products are already ubiquitous in China, including those bearing Burberry’s pattern. The Chinese government hasn’t been doing much to cut down on them even with the rights to the trademark, yet Burberry’s sales have still been growing at a significant rate in the country."
Xi Jinping is pursuing heavy measures to crack down on luxury consumption by officials.
"In what could be a further blow to luxury consumption in China, the nation’s leadership is deepening its pledge to crack down on corruption and ostentation with the release of new rules outlining how officials should avoid extravagant spending on activities ranging from overseas travel to the purchase of new vehicles."
“'We are not cutting back at all in terms of what we are doing here,' Solomons said in an interview in Shanghai yesterday. 'Government is not a huge piece of our business. As a good operator, if one piece of business is less, you go for another piece.'”
"Commemorating the 40th anniversary of Lee’s death, the auction will consist of 14 items from the actor’s life and career. They are owned by an unnamed Hollywood collector and movie-industry insider, said Anna Lee, vice chairman of Spink China, the firm organizing the sale."
"The marketing benefits of this campaign were numerous. By using WeChat as a platform for the increasingly popular online-to-offline (O2O) marketing model, the campaign encouraged active engagement with the ads rather than passive viewing, and was aimed at encouraging users to follow Martell on the most widely used mobile-social app in China."
"Great Wall, based in Hebei province, has risen about 9,000 percent since its 2008 low, the most in the 28-member Bloomberg World Auto Manufacturers Index, as surging sales and low costs generated the widest operating profit margin among listed carmakers in 2012. SUV sales in China climbed 73 percent in October, even as the government battled to curb air pollution."
"When Ford starts selling the new Mustang overseas, it will be playing catch up to GM's Chevrolet Camaro, which is already offered in Europe, China, the Middle East and Brazil. John Fitzpatrick, the marketing manager for Camaro and Corvette, said the Camaro only sells in small numbers outside of the U.S."
8. A New Wave Of Investment Opportunities In The East? How You Can Cash In On China's Impending Shopping Boom#
"China is about to undergo the most significant set of economic, political and social reforms the country has seen in 30 years, which experts say could kick-start a new wave of investment opportunities."
"One of the supermarket staff said that it is common for supermarkets to purchase a number of gift liquors at the end of the year. Most of the gift liquors have a large and luxury packing box, which only sells in national holidays."
"'Although we really hate to see this, there is nothing we can do about it,' the source said, adding that the visitor was able to return the majority of his items in line with China's Tourism Law. The new law, which took effect on Oct. 1, bans profits from hidden costs to travelers, such as mandatory shopping outings."