In case you missed them the first time around, here are some of Jing Daily’s top posts for the week of April 15-19:
Burberry Stands Out As Bright Spot In China Slowdown News
Burberry's Beijing flagship store, opened in 2011.
This week’s report of China’s surprisingly slow first-quarter GDP growth has left luxury giants such as LVMH grappling with dismaying headlines and decreasing stock prices. Compounding the worries, the news came amidst a general months-long slowdown in China’s luxury market, sparked by a combination of economic factors and the Chinese government’s continued crackdown on luxury goods sales. But one bright spot in the China luxe landscape made news today: Burberry’s counterintuitively higher-than-expected second-half revenue numbers.
Think China’s Luxury Consumers Are All The Same? Think Again.
The Plaza 66 shopping center in Shanghai. (theplaz/Flickr)
Much has been written about the rising power of China’s luxury consumers. The most recent studies state that they have now surpassed their U.S. counterparts as the world’s top luxury shoppers.
Yet too often, this much-valued segment is touted as relatively homogenous. But in reality, today’s Chinese luxury consumers are a diverse and dynamic group, with vastly different spending power, needs, and life philosophies. Significantly, luxury is no longer the sole preserve of high-net-worth individuals.
Will Golf Prodigy Guan Tianlang Popularize The Sport In China?
Guan Tianlang at the 2013 Masters Tournament.
Although the top prize of this weekend’s U.S. Masters golf tournament went to Adam Scott, the name that had everyone buzzing was 14-year old Chinese wunderkind Guan Tianlang, the youngest player to ever make the cut for the competition’s finals. His rise through the ranks has many asking if his fame will help to spur the growth of golf in China, and the answer is probably a mix of yes and no — the sport has been rising in popularity on the mainland for years, yet only for members of the highest echelons of the upper class. Although Guan may bring more visibility to the sport, the economic and political climate for golf development appears set to keep it a luxury sport for the foreseeable future.
Apple’s Not Off The Hook Yet In China (And Isn’t Going To Be)
An Apple billboard in China.
After dealing with a Chinese government-sponsored public relations nightmare last month that resulted in Apple’s public, yet vague, apology in response to accusations of unfair warranty practices against Chinese consumers, new Chinese state-run media reports indicate that the company’s China woes don’t seem to be over just yet. Although the corporation appears eager to put the controversy far behind it, the Chinese government may have other plans if the prior experiences of foreign companies such as Google are any indication.
China’s Luxury Appetite A Boon For Scotland
Whisky producers like Johnnie Walker have been keen to tap growing demand for imported spirits in China.
While China’s wealthy urbanites are expected to continue cutting back on conspicuous consumption this year, one country that stands to continue to gain from China’s evolving luxury demand is Scotland. Less known for flash in China than Italy, yet enjoying a reputation for craftsmanship that rivals France, Scotland’s ancient history and deep association with quality cashmere and whisky (as well as that most quintessential of wealth-connoting activities, golf) has translated to massive opportunity in China for many Scottish companies.