Week In Review: May 27-31, 2013

In case you missed them the first time around, here are some of Jing Daily’s top posts for the week of May 27-31: LVMH Rushes To Keep Up With China’s Changing Tastes According to a new Financial Times article, several experts believe that LVMH’s less-than-impressive first-quarter growth numbers are due to the fact that the company underestimated the rate at which Chinese tastes would shift away from logo-heavy designs toward more understated looks. When the conglomerate recently reported its first-quarter growth rate of three percent, the low number sparked industry worries that China’s slowdown may be hitting luxury harder than anyone had predicted. However, as results from other luxury brands continued to roll in, it became clear that LVMH had performed much more poorly than others who saw less dramatic growth declines. Chinese Demand For VIP “Unique Experiences” On The Rise The Wall Street Journal recently covered the rising trend of luxury companies providing unique, VIP experiences to their wealthiest clientele, and to accompany the story got an insider’s take on the practice through a video interview with former Richemont Asia CEO Francis Gouten, who now runs his own luxury consulting company. As Jing Daily previously noted, companies’ arrangements to create special events for their most-valued customers can range anywhere from holding in-store cocktail receptions to providing free trips to Europe, depending on how far a brand is willing to go to make an impact on its high-spending clients. Chinese Tourism: Summer Season Off To A Good Start In Key U.S. Markets As the summer tourism season heats up, luxury retailers around the world are anxiously watching early Chinese tourism estimates. After nine months of lean times, they are eager to glean insights on projected sales during the key summer tourism season. During the past week, our research team has lurked in some of America’s top tourism sites, from Disneyland to La Jolla, from Manhattan’s 5th Avenue to the Clara Barton Memorial Rest Area on the New Jersey Turnpike, and from affluent Fairfax County to our nation’s capital. Recapping Art Basel Hong Kong: Branding, Sponsorship, And Oh Yes, Art Hong Kong’s inaugural Art Basel fair wrapped up on Sunday, and it was clear from this year’s VIP crowd that Art Hong Kong’s new incarnation has made it an integral part of the international art fair circuit. Local and international luxury brands, restaurants, and hotels took advantage of the upscale gathering through sponsorship of special events and promotions throughout the fair, because, in the words of one gallery director, “This is a lifestyle for certain people.” Thanks to the rebranding of Art Hong Kong (ARTHK) under the Art Basel imprimatur, the event attracted a wealthier, more international audience. Although MCH Swiss Exhibition (Basel) Ltd. had actually acquired 60 percent of the Hong Kong fair in July 2011, the official rebranding took place this year, and it clearly made a difference in the crowd that turned out. With Breakthrough Deal, Hollywood Company Wins Coveted Access To China Movie Market In a groundbreaking deal that makes major headway in Hollywood’s push for a more prominent place at China’s box office, Legendary Entertainment’s China-based company, Legendary East, has signed a three-year co-production plan with China Film Co.–an agreement that is the first of its kind in China’s evolving film business landscape. “There can be no doubt that this is one of the most important collaborations for CFGC in the coming years,” said Han Sanping, China Film Co.’s chairman, in the press release announcing the deal. “We believe that through strong collaboration between CFGC and Legendary East, we will be able to make films that are more appealing to filmgoers, creating new genres that, through the magic of film, bring greater variety to audiences around the world.”

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Week In Review: May 27-31, 2013