Luxury resort pop-ups in China: Innovative or overdone?

With summer just around the corner, luxury brands are shifting into vacation mode. This means busting out the flowy dresses, statement swimwear, and not-to-be-missed, resort pop-ups. While this year’s calendar is already filling up with the usual European destinations — Chanel and Tommy Hilfiger have stopped in Mykonos, while Gucci and Jacquemus have set up shop in Saint-Tropez — luxury brands are also heading to China in hopes of winning over the affluent luxury traveler. On May 23, Louis Vuitton launched its first resort activation of the year at Banyan Tree Macau, revealing an exclusive poolside takeover at the high-rise urban resort. The pop-up, which ran until yesterday, saw the LV monogram decorate the pool floor, sun beds, poolside umbrellas, cabanas, and a special ice-cream bicycle stand, immersing guests in the brand’s world. The maison also unveiled its “LV by the Pool” 2024 collection, featuring beachy ready-to-wear, bags, shoes, sunglasses, and other accessories. Exclusively available at the Galaxy Promenade store are the plush LVacation Tote and Bucket bags, along with the Rush Bumbag and Pocket Organizer in surfing monogram canvas, designed to capture the season’s laidback vibes and the label’s renowned travel spirit. Capturing China’s domestic travel boom This isn’t the first time LV by the Pool has landed in China. Last June, Louis Vuitton made waves with its pop-up at Huangcuo Beach in Xiamen, a popular port city on the country’s southeast coast. In addition to offering exclusive summer products, the brand also presented a bookstore and special dining experiences on the beach. Other luxury brands have followed suit, including Dior, which brought its Dioriviera beach collection to Sanya again this year. Like Louis Vuitton, Dior decked out the poolside in branded cushions and parasols while adding sun motifs and animal sculptures to heighten the sense of escapism. By bringing their resort pop-ups to China, luxury brands are tapping into the world’s second-largest domestic travel market. According to a 2024 McKinsey report, China’s domestic travel market is expected to grow 12 percent annually and overtake the US’ to become the world’s largest by 2030. In recent months, Trip.com Group has seen a nearly 90 percent increase in searches related to domestic beaches, highlighting the growing trend of exploring natural beauty within the country. Preferred summer vacation destinations for Trip.com users include Sanya, Dalian, and Zhoushan, known for their beachfront resorts and homestays. On Xiaohongshu, the hashtag “Sanya Edition Dior pop-up,” which includes previous activations at the boutique hotel, has 3.3 million views. As one user writes about Dior’s 2024 event, “I’ve come to Sanya again. Every time, I can’t get enough of the sunshine, the blue sky, the sea, and the wind. It’s so romantic and free. I feel like I don’t want to go home here.” The power of resort pop-ups Summer beach and resort pop-ups provide brands with opportunities to create immersive experiences that go far beyond traditional advertising. “Potential customers are far more open to new ideas and products than when at home,” says Kristoff D’oria di Cirie, an experience design expert and founder of Insogni Studio. “By crafting a holistic environment that fulfills the brand’s ethos in every detail, from the decor to the activities, these takeovers allow customers to fully step into the brand’s world.” Potential customers are far more open to new ideas and products than when at home. This retail format is particularly appealing to affluent millennials and Gen Z consumers, who value unique, memorable experiences over simply buying products. “They’re willing to spend on travel experiences that align with their interests and values, and a resort takeover gives them the chance to not just buy into a brand but to actually live it, even if only for a short time — a potential replacement to the devalued diffusion line models for onboarding aspirational future buyers,” D’oria continues. Hurun’s latest Chinese luxury consumer survey reiterates this shift towards high-end experiences. In 2023, spending on high-end services including hotels and travel rose 20 percent year-over-year to 830 billion RMB ($118 billion), while spending on “traditional” luxury goods like handbags and fashion grew 8 percent during the same period. Not your average getaway Despite the advantages of summer pop-ups, many luxury brands are doing much of the same and wasting their potential, says Natalia Jaramillo, a Dubai-based luxury experience designer. “It’s not about telling a story, showcasing a logo, or providing food, a DJ, and branded towels,” she notes. “Beach clubs and resort pop-ups should view hospitality as an opportunity to explore their brand in a new context, showcasing what makes them unique and authentic.” She explains that this starts with defining a theme that aligns with the brand’s storytelling and DNA, answering the question, “What’s in it for the guest?” Once a theme is defined, brands can craft a journey where every touchpoint is carefully curated. This includes reimagining how staff are utilized, making them key characters in the experience. D’oria advises that brands differentiate themselves by selecting unexpected locations or partnerships, offering brand-aligned activities that foster a sense of community, and building in-person activations based on their most successful editorial campaigns. “However, it is crucial not to undermine the overall experience by focusing too much on product. The guests will get it; they know where they are — a discreet showroom will suffice, or better yet, distribute product thoughtfully throughout the site to add moments of discovery,” he adds. Jamarillo points to Villa Zegna, Napapijri’s pop-up in London, and Van Cleef & Arpels’ pop-up at Dubai Watch Week as examples of the format done well. Villa Zegna, a week-long, invite-only experience that opened in Shanghai at the end of May, featured a private lounge, café, and series of exclusive dinners with brand friends and ambassadors. Although summer pop-ups can last anywhere from a week to a few months, they’re ultimately about creating experiences that guests remember long after they return home. “Think of it like the Orient Express concept — something truly exceptional and unforgettable,” Jamarillo says.

Luxury resort pop-ups in China: Innovative or overdone?

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Published June 06, 2024

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Luxury resort pop-ups in China: Innovative or overdone?