Week In Review: March 4-8, 2013

In case you missed them the first time around, here are some of Jing Daily’s top posts for the week of March 4-8: Label Overload: How Many More Western Brands Can The Chinese Market Sustain? Abercrombie & Fitch, Jack Wills, and COS are just a few of numerous mid- to high-end Western brands to open stores (and offices) in Hong Kong last year, with iconic British brand Topshop slated to follow suit this May – albeit without the Topman section. But for newcomers, will 2013 prove to be one year too late? Whether hoping to tap into the local market or merely establish the brand in consumers’ minds before expanding into mainland China, large retail groups and smaller brands alike typically invest heavily in expensive retail spaces (in Causeway Bay, Pacific Place or even worse, on Pedder Street) and large-scale PR campaigns. Net-A-Porter Readies Hong Kong Hub, Chinese-Language Site Aimed at building a stronger foothold in the region, the new Chinese-language site and Hong Kong distribution hub should also help increase competitiveness in a highly contentious Chinese luxury e-commerce market. Far from a blank slate, the luxury e-commerce segment in China, though young, is populated by major players like Hong Kong’s Lane Crawford — which also operates physical stores in Hong Kong and mainland China and has strong existing distribution networks — as well as international heavyweights like Yoox (which had its China launch last fall) and Neiman Marcus, and up-and-coming domestic sites like Shangpin. Ralph Lauren Faces Tough Road Ahead In China Plagued by several marketing missteps, damaged by rampant counterfeits, saddled with a less-than-ideal retail partner for two decades, since 2010 Ralph Lauren has been retooling its China strategy to rehabilitate its brand image and take advantage of the country’s fast-growing apparel market. Like fellow American brands Coach and Michael Kors, which enjoy strong sales among China’s middle class, Ralph Lauren is hoping to situate itself firmly in China’s mid-range luxury segment via a protracted brick-and-mortar rollout aimed at raising brand awareness. To Succeed In China's E-Commerce Market, Take Culture Into Account What Luxup appears to be experiencing with Chinese consumers is a complication shared by many players in China’s high-end online retail market: the market is very new to luxury e-commerce and remains (in very general terms) bifurcated between a full-price model and a “race-to-the-bottom” discount model. Being more service- and exclusive-offer-based — the “sight unseen” model described in Amed’s column — Luxup is essentially seeing the worst of both worlds in China — more sophisticated, demanding shoppers who can afford the best, but still want discounts and a raft of perks. (And if they don’t get them, they’ll look elsewhere.) The Outnet Celebrates One Year In China Through March 19 (3/19), newly registered and existing members will receive a 319 yuan (US$51) gift credit to their accounts, which can be used on purchases over 1,319 yuan ($212). In addition, users who place an order exceeding 3,190 yuan ($513) will receive a further 319 yuan credit to their total purchase. On March 19, the Outnet.cn will also launch a sale with selected items priced at 319 yuan, offering a bonus 319 yuan credit for purchases over 3,190 yuan.

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Week In Review: March 4-8, 2013