January 24, 2013

Trending in the fashion business news: China

China

Here are a few cold figures, relevant evaluations and well grounded forecasts:

independent.ie

! Taiwan, with a population of 23 million and a frequent influx of Chinese visitors, is an important market for fashion and luxury items

! Dior, Hermès or Burberry all have important stakes here

! the Chinese men make up for 55% of the total luxury sales, compared with the 40% global average

! last year, the luxury watches and jewellery market has seen a 30% drop, while the accessories market only rose by 5%

! Bain & Co estimates say that the 2012 global luxury market had a total worth of EUR 212 billion, up 10% from 2011, increases being seen by Asia – 18%, the Americas – 13% and Europe – 5%

businessweek.com

! China has a 25% contribution to the global luxury spending

! the Richemont group has seen a 7,3% stock price decrease, following apparent lingering sales in the Asia-Pacific region

! a possible explanation is linking the fact that Cartier, the group’s main player in China, is tightly targeting the top of the high end market, while the Chinese buyers have probably been more cautious, China’s economic growth last year, of 7.8%, being the slowest since 1999

! one more factor possibly explaining this apparently changing trend is the deepening of the Chinese’s buying patterns shift, their going shopping outside mainland China – to Hong Kong or even Europe – is even more on the rise

! Richemont is diversifying its approach of the Chinese market: Baume & Mercier is launching a joint venture together with Chow Tai Fook Jewellery

finchannel.com

! the figures coming out of China are motivating brands to explore shifting their market positioning, either up market or down market, in a bid to ride the new trend

! Burberry, Mulberry, Gucci, Louis Vuitton or Tiffany & Co likewise have possible reasons to reassess their approaches

! Prada appears to be the last period’s winner, with growths in Europe of 32%, Asia – 28%, the United States – 16% and Japan – 15%

bloomberg.com

! the Chinese tourists appear to increasingly make shopping excursions out of their European trips, and Paris, London and Madrid are prepared to accommodate their appetite, more so since a Global Blue estimate says that the Chinese spend an average of EUR 11 000 on shopping during their holidays

! Europe has a top positioning for benefiting from the destination choice of a good proportion of the 94 million Chinese expected to travel abroad by 2015

! McKinsey forecasts say that they will be making up a third of Europe’s luxury buyers in 2013, compared with a fifth in 2012

 

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Photo sources: businessoffashion.com, news.yahoo.com