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LUXURY REVIEW Greater China Issue No #01 2018 Issue No #01 LUXURY REVIEW Greater China [ 1 ] Welcome. Our quarterly Luxury Review has been given a new look. We aim to bring our What started as a passion project has grown readers the must-know to a must-read for industry insiders in China and beyond, and it’s only fitting that we facts and insights about the evolve our publication accordingly. luxury industry We have updated the format to accommodate time-pressed readers. We’ve introduced Quick Takes – short form articles to give you a recap of the key happenings in the luxury industry over the past quarter. You will still find our POV and analysis through longer reads in the second section. We have also merged our two editions into one bilingual issue. We will continue to cover trends, brands, and products having an impact on the Greater China region, from categories ranging from fashion and beauty to travel and auto – and wherever luxury will go next. We hope to continue to give you market knowledge and insights that will help guide your luxury communications strategy. Thank you for reading. Mindshare [ 2 ] Welcome. [ 3 ] Content 010 – Quick takes 011 – Campaigns 012 – Product Launches 013 – Business 014 – Content 015 – Technology 020 – Mindshare’s POV 021 – Chinese firms acquiring luxury brands 022 – Beauty is boosting speed to market 023 – WeChat’s new ad format 024 – Is J-Beauty the new K-beauty? 025 – Volvo’s luxury pivot brings recognition 026 – How can luxury brands thrive in today’s digital landscape? [ 4 ] TheQuick news Takes you need to keep up with luxury [ 5 ] CAMPAIGNS Chanel Mademoiselle Privé Exhibition Following two successful editions in London in 2015 and in Seoul last year, Chanel’s “Mademoiselle Privé” landed Hong Kong in early January this year. The four-week exhibition was free of charge and held at PMQ, Hong Kong’s creative hub.1 This exhibition not only offered an immersive look into the origins and sources of inspiration for Chanel’s designs, but also captured the unique personality and spirit of Gabrielle “Coco” Chanel and Karl Lagerfeld. Mademoiselle Privé International stars like Pharrell Williams, Kaia Gerber, Caroline de Maigret and Park Soo Joo P1 were invited to the event.2 Mademoiselle PrivéM Qd In order to enhance the visitor experience at the 3 exhibition, Chanel launched an app for both IOS P3 and Android mobile phones. In it, guests could Gabrielle ”Coco” Chanel PKarl book their time slots to the exhibition, preview LagerfelPharrell content and register for workshops held within WilliamsKaia GerberPPark 3 the exhibition area. Soo Joo 2d 33 IOSPAndroid 21 1 http://www.scmp.com/magazines/style/news-trends/article/2124803/chanels-mademoiselle-prive-exhibition-set-hong-kong 2,3http://www.scmp.com/magazines/style/fashion-beauty/article/2126819/6-things-know-about-chanels-mademoiselle-prive [ 6 ] CAMPAIGNS Stella McCartney on Tmall Space Stella McCartney Stella McCartney launched a flash sale store on Stella McCartney Tmall Space under Luxury Pavilion. It is the Luxury PavilionTmall Space second brand testing the platform following Loewe Spanish fashion brand Loewe launching its Tmall Space limited-edition handbag in Tmall Space last Luxury Pavilion August. Luxury Pavilion is exclusively open to VIP3 Tmall VIP customers, attracting big-name luxury 2018 brands. The pop-up sale lasted one month, offering the 2018 Spring/Summer collection, 84 including some products even unavailable in Luxury PavilionLuxury Pavilion stores in China.4 The brand also offered coupons and gifts to drive sales. A brand page was Tmall Space created on Luxury Pavilion to introduce the brand 5Falabella GO story and the new arrivals of this collection. Right 5 after the Tmall Space campaign, the brand worked with e-commerce website VIP.com to introduce 3 Falabella GO collection backpacks. VIP.com is the only authorized retail channel for these bags in China.5 4 http://tech.sina.com.cn/roll/2017-12-17/doc-ifypsvkp3843876.shtml 5 http://mini.eastday.com/mobile/180114001406363.html Image source: Screenshot from Tmall Luxury Pavilion [ 7 ] BUSINESS There have been several noteworthy appointments 6 in the fashion industry VDior Homme Saint LaurentHedi Slimane recently, most involving Céline0 HSidney Toledano0Hedi talent linked to LVMH. SlimaneM7L Céline BurberryRiccardo Tisci 7Givenchy Hedi Slimane, previous designer of Dior Homme and Saint Laurent, is to take over at Celine as Tisci the new artistic, creative and image director. Burberry Sidney Toledano, Chairman and CEO of LVMH Kim Jones Fashion Group commented in a press release 2 that he views Hedi Slimane as an exceptional DiorJones8 designer and expects him to “lead Celine to ever MV greater success through his renowned creative LV x SupremeJones energy and discipline.“6 21Kris Van AsscheDior Homme 66 Burberry also welcomes a new creative officer, Riccardo Tisci, who just finished his career at Givenchy last year. He led the creative direction of the LVMH-owned brand for more than a decade. In his new role, Tisci will be based in 8 London and take charge of all Burberry’s collections.7 After Kim Jones’s last runway show for Louis Vuitton at Fall 2018 Men’s Fashion Week in Paris, he is exiting the maison to join another LVMH brand: Dior. Jones has held the position of men’s artistic director at Louis Vuitton since 2011 and is the brain behind commercial successes such as LV x Supreme. At Dior Homme, Jones replaces Kris Van Assche, who is stepping down after eleven years at the helm.8 People come, people go, but the fashion carrousel never stops. 6 https://www.lvmh.com/news-documents/news/hedi-slimane-named-artistic-creative-and-image-director-of-celine/ 7 https://www.businessoffashion.com/articles/news-analysis/riccardo-tisci-is-the-new-creative-director-of-burberry 8 https://www.businessoffashion.com/articles/news-analysis/kim-jones-to-exit-louis-vuitton [ 8 ] Coach launches SCRM a Coach has released a Social Customer CoachP2017a SCRM Relationship Management system called WeclientPa “Weclient,” to activate 1-on-1 online client - service.9 Coach o9 This app links to Coach‘s WeChat account. The A customer can scan his/her individual service advisor‘s QR code via WeChat, and follow the WeclientC Coach‘s official account to receive exclusive cc online client service. Weclient takes advantage h-9 of its social network function to understand 9-- customer needs, and also brings 1-on-1 c professional services to enhance distinguished experience. At the same time, the customers can book offline service online, and offline service can also leverage traffic back to online, in which online and offline experiences seamless integrated to increase the overall sales conversion rate. 9 http://socialbeta.com/t/102102 [ 9 ] Luxury brands dominate the inaugural BrandZ1 French BrandZ ranking WPP agency Kantar Millward Brown revealed their BrandZ ranking of the 50 most valuable Kantar Millward BrownBrandZ French brands. With France being the birthplace 500 of traditional luxury, it comes as no surprise that the list is dominated by luxury brands, and in affect presents a view of the brand health of the 1 luxury leaders., The ranking is topped by Louis Vuitton and Hermès, with Chanel at number 5, 1 Lancôme at number 7 and Cartier at number 8.10 88,900 35500 The luxury category has a combined brand value 5015 of US$88,9 million. Louis Vuitton alone accounts for 15% of the total brand value of the Top 50 501 with a brand value of $US35,5 million. Dior, Saint P Laurent, Moet & Chandon, Sephora, Givenchy, W Martell & Guerlain all make the top 50. 5 Brand contribution measures the influence of brand alone in the mind of the consumer. It’s considered a key driver of business growth. Lancôme, Chanel, Louis Vuitton, Veuve Cliqout, all achieved the highest possible score of 5. 10 BrandZ Top 50 Most Valuable French Brands 2018 Image source: http://www.wpp.com/wpp/press/2017/dec/06/luxury-dominates-first-brandz-top-50-most-valuable-french-brands-2018- ranking/ [ 10 ] Chanel and Farfetch announce partnership Farfetch Chanel have always been reluctant to engage in e-commerce, slowly experimenting with different ways to approach the channel, from offering its Net-A-Porte beauty products on their standalone e-commerce to limited e-tailer partnership with Net-A-Porter for its jewelry line. Therefore the announcement rFarfetch of a partnership with e-commerce giant Farfetch is somewhat surprising. The partnership is said Farfetch to focus on augmenting the brick-and-mortar Farfetch1 experience of their stores through Farfetch’s data platform, and will not make Chanel products available on Farfetch’s online platforms. Farfetch The long-term partnership will see Chanel Bruno Pavlovsky investing in Farfetch, and initial trials will roll-out in France later this year. Judging by comments made to BoF by Bruno Pavlovsky, Chanel’s president of fashion, we can expect a range of Farfetch digital services which will link consumers to the boutiques, such as appointment services and product reservations.11 Farfetch have previously demonstrated parts of their “Augmented Retail” programme, including digital mirrors, automatic wishlists and advanced consumer recognition. 11 https://www.businessoffashion.com/articles/fashion-tech/chanel-strikes-farfetch-deal-to-augment-boutiques [ 11 ] Airbnb is stepping into luxury hospitality Airbnb Airbnb China has announced several new Airbnb services catering to affluent audiences, effectively positioning themselves as a more Airbnb direct threat to luxury hotels. Properties on the Beyond Airbnb Airbnb site which fulfill certain upscale criteria will be highlighted under the section Beyond Airbnb. This will make luxury rental options discoverable in a way they weren’t before.12 Airbnb Plus 1002 The other service, Airbnb Plus features 200100 properties which have fulfilled a 100-metric long list of specific demands.
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