In “Chinese Whispers,” we share the biggest news stories about the luxury industry in China that have yet to make it into the English language. In this week’s edition, we discuss:
- Tiffany & Co.'s expansion plan
- Gucci and Patek Phillippe's retail price increase in Greater China
- Prada's debut on JD.com
1. Trade war victim Tiffany strengthened its business presence in China on the back of decreasing Chinese tourists to the United States - Jiemian#
The American jewelry brand Tiffany & Co is betting on a warmer bond with China to offset the recent downhills caused by the escalation of the U.S.-China trade war.
Last week, the company admitted it has felt the chill of the trade war, with CEO Alessandro Bogliolo singling out the massive decrease of tourism spending from China as a key reason to lower the company's full-year outlook. The same week, Tiffany & Co. opened a new boutique store in Beijing with posh a grand opening ceremony. The new location offers Chinese consumers a fresh retail experience and top-notch service. Philippe Galtié, vice president of Tiffany & Co., also told Jiemian that the brand would launch its first-ever e-commerce platform in China, on August 8, the Chinese Valentine's Day.
2. Gucci and Patek Phillippe raised retail prices in Greater China since June - Beijing Business News#
As the current trade disputes between the United States and China continue to ratchet up and spread to sectors including education, tourism, and retail, high-profile luxury brands Gucci and Patek Phillippe have started to drive up their retail prices since June 1.
According to Chinese newspaper Beijing Business News, Italian luxury brand Gucci conducted a round of global retail price increases, including the Chinese market. The pricing change was a strategic move to consolidate Gucci's luxury positioning in the industry, the brand said. At the same time, the prestigious Swiss watch brand Patek Phillippe increased their retail prices in Hong Kong from June 1.
The Italian luxury powerhouse Prada Group has lately ramped up its expansion in China. Following a debut on the Chinese luxury e-tailer Secoo last week, the company teamed up with another e-commerce firm, JD.com, this week.
Prada, Miu Miu, and Car Shoe, the three major luxury brands in the Prada Group, are setting up an official presence on JD.com and will unveil the 2019 autumn/winter collection during the upcoming mid-year shopping festival on June 18 (618). The "618" shopping festival was originally coined by JD.com as a competitor to Alibaba's Singles' Day event.