In “Headlines from China,” 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:
- WeChat Tests Beta Short-Video Feature
- Hang Lung Properties Reports Strong Growth in China
- Hong Kong Streetwear Group I.T's Sales Slowed
WeChat Tests Short-Video Feature In Response to Rivals —#
36Kr#
Seeing short-video platforms Douyin’s (known as TikTok outside China) success, WeChat now wants to add a short-video feature for its users too. can no longer hold the crown as China’s all-in-one app. It recently launched an internal test for a new video feature on its ‘Discovery’ tab. As of now, the news-feed-like feature is only open to users in certain Chinese cities who can prove to be influential and creative, Tencent says. Organizations and individuals can now post videos up to a minute in length or up to nine images. They can also add text and link to their official WeChat accounts. While luxury brands, including the fashion retail group Selfridges, are still catching up with WeChat Mini Programs, which brand will test the water?
Hang Lung Properties Reports Strong Growth in China —#
Guandian.cn#
Hang Lung Properties, the commercial developer behind some of China’s luxury shopping malls like Shanghai’s Plaza 66 reports strong growth in its 2019 financial report, with HK$8.5 billion (around $1.1 billion) of revenue from property leases and 53% coming from the mainland last year. Plaza 66’s retail sales — a benchmark for China’s luxury sales — has gone up by 21% compared with a year-ago, reaching 1.69 billion yuan (around $1.23 billion). With stable sales in its core business, the Hong Kong developer can now look to other projects, such as the budding deal to bring Kering’s brands to six more tier-2 cities like Wuhan and Dalian.
Hong Kong Streetwear Group I.T’s Sales Slowed —#
Jiemian#
I.T, the group that owns the eponymous streetwear select shops I.T, draws links between its slipping sales worldwide with China. In the third quarter ending on November 30 last year, same-store sales dropped 5.2% in China’s mainland and 33.3% in Hong Kong and Macau. Japan and the US also shed 6.1%, according to an unaudited third-quarter financial update published last Friday. The group says that the decline in mainland China was mainly because they held back discount activities for both online and offline channels. As for its Japan and US segment, the lost sales was due to decreased tourist traffic from the mainland, according to the retail group.