China

Hong Kong’s sizeable British expat community is getting excited about next year’s opening of Topshop in the city’s central business district.

But they are not the only reason why Sir Philip Green has decided to open the British brand’s first permanent outlet in greater China.

The city is a favourite holiday destination for mainland China’s growing middle class, who flock to the tax-free special administrative region to shop, and also an international financial centre passed through by many visitors already familiar with the brand. Locals also have among the highest spending power in the region.

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PPR’s announcement last night that they had bought a majority stake in baby Chinese jewellery brand Qeelin – it was launched in 2004 by Dennis Chan and Guillaume Brochard– marks the third move on the part of French group with an Asian dimension. You know what that means: I smell a trend. Read more

Two interesting announcements this morning, both of which are worth examining: First Labelux announces instead of embracing (and chasing) hard luxury, it is exiting the segment to focus entirely on leathergoods; then Mulberry rejects the outlet model to take its bags and other products further up-market. The moves are complementary, in the context of general industry strategy. They both indicate that in the highly competitive world of leathergoods, current theory says it’s the most special, elaborate, highly worked pieces that sell.
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The news that LA-based private equity firm Leonard Green & Partners may take a 25% stake in Topshop and Topman has the high street all aflutter, largely because of the billion plus valuations it puts on the brands. However, it makes sense for a lot of reasons, and provides some fun fodder for sepculation. Let’s plunge in! Read more

For absolutely riveting reading, let me recommend the first ever World Handbag Report. It’s a collation of 120 million internet searches in 10 markets via four search engines (Google, Bing, Bai du, etc) by the Digital Luxury Group, and is it full of surprising facts – most notably, how incredibly imbalanced the handbag market is. The brands with big market share of search have BIG market share. The rest, well…have piddly squat. Read more

Check out the picture below of the incoming members of the Politburo Standing Committee. Those ties! Those suits! That hair parting. If, as my colleagues point out today, the reduction in membership of China’s ruling committee from nine to seven is “an effort to make collective decision-making less contentious and more efficient,” this gives new meaning to the idea of sartorial unity. Read more

There’s a really interesting study out today from the Digital Luxury Group. Based on data from over 31 million searches on Google, Bing, Yandex and Bai du, as conducted in Brazil, China, France, Germany, India, Italy, Japan, Russia, the UK and US, it looked at which American luxury brands were the most popular globally (based on search, natch, not sales). The results would probably surprise you, especially when it comes to who’s on top, and emerging markets. Read more

Earlier today I wrote about the odd idea that came to me after reading Bain’s 11th Luxury Goods Market report, but now I’d like to simply list a few more notable — and surprising — conclusions from that exciting document, including facts on outlet shopping, Gen Z, and a new Chinese consumer segment. Read more

Today Bain released its 11th annual Luxury Goods worldwide Market Study, projecting that the luxury market growth will slow to about 10% a year, and then perhaps 4-6% for the next two years, and that all the slack won’t be picked up by China, which is also slowing. When Burberry first noted this trend, the reaction was largely “shock, horror!”, and their stock dropped 20%. However, I wonder if long-term this slowdown might not actually be a useful thing.
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Today Ledbury research is publishing their “CEO Sentiment Indicator,” an exciting document in which they chart the words of luxury execs as they reveal the thoughts of said execs about how things are shaping up for the future. They gave us an exclusive peek at it before release. And guess what? They are not feeling the love.

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