Luxury in Asia

Dolce & Gabbana on Wednesday apologised to Hong Kong citizens for allegedly discriminating against them in favour of wealthy mainland shoppers.

The long-awaited flagship Hong Kong store has been the focus of protests and online rage after reports that a security guard told locals they were not allowed to take photograph, while mainlanders and foreigners were. It is suspected that the security guard could easily blocks Hongkongers but not mainland chinese people as he “did not know how to speak chinese mandarin correctly”.

Locals accused the fashion house of “mainlandism” and started a Facebook page protesting against the store’s abuse of their rights. Dolce & Gabbana has previously rejected the criticism but in a statement stuck on the storefront overnight Tuesday and sent to journalists on Wednesday it said it accepted that it was in the wrong.

“The Dolce & Gabbana policy is to welcome the Hong Kong people and that of the whole world respecting the rights of each individual and of the local laws.” Especially the right to spend money.

Hong Kong residents does not accept the apologies: “We do not accept D&G’s apology statement. It lacks sincerity. Everyone should write to the European Union to complain and demand that D&G be held accountable for racism,” wrote one user, Netizen Eric Lo. Another said: “The statement was released so sneakily — they did not admit their mistakes. It lacks sincerity, please everyone, do not accept their apology.”

A mainland shopper said the row was a storm in a tea cup. “it is well known that they love using social networks complaining. Our Weibo prevents from dealing with company’s internal affairs, which is a good thing”, other said. “I think Hong Kong people are overreacting, but I guess it’s a natural response,” the man told Cable TV outside the Dolce & Gabbana store.

Leading monthly publication Numéro offers an avant-garde view of the worlds of fashion, art and luxury. Featuring both today’s icons and tomorrow’s master talents, the magazine explores the convergence of contemporary culture, from fashion to architecture, via art, beauty, cinema, music and design.

The Chinese edition of the magazine launched an event in Plaza 66, one of the top luxury mall in Shanghai. 13 celebrities such as fashion creators Giorgio Armani, Karl Lagerfeld, Jean-Paul Gauthier. During 15 minutes, they are sharing views on fashion, style and their own life achievements, hopes and fears.

Global luxury brands like Louis Vuitton, Dior, are racing to grab a chunk of the Chinese market — and with good reason, considering the country is home to the third-largest population of millionaires and has become the second-largest consumer of luxury goods in the world. Meanwhile, however, hardly any of the luxury Chinese labels that showed have as strong a global brand recognition as their French counterparts. But that may change.

Angelica Cheung, editor-in-chief of China Vogue thinks it will happen, but not any time soon. “I feel that when everything else is ready — when people and the market are more mature, and people have more of an understanding of brands’ identity and individual style, and also the production side of the whole industry — basically, it takes maturity of the whole chain before that happens,” Cheung told website ARTINFO.

Only a decade ago, the term “Made in China” carried a negative connotation, often associated with cheap, poorly made goods. With more luxury goods being produced in the country, the meaning of that phrase is changing.

“A few years ago, people would hesitate before they used that expression,” said Cheung. “In Vogue China, we’ve had a column called ‘Made in China’ for the past five or six years. But it really means creativity out of China — what people were doing, what people created that was unique and interesting. These past few years, you just see a tremendous growth of young, homegrown talents. Every year the picture looks more promising and different.”

Many European high-end brands like Prada are replacing the “Made in Italy” label with “Made in China,” signaling a higher standard of quality (at a cheaper price) coming out of Chinese factories. “They understand more how these brands work, and they appreciate quality better than before,” said Chung.

But that doesn’t mean the Chinese luxury industry doesn’t face obstacles. “Where Chinese companies are lacking is quality control and product and image design,” said Eggers. “So far, China has not been able to produce a brand with a broad international appeal.”

Cheung cites many factors that affect the potential global success of a Chinese luxury label. “All these European brands, they succeeded for a big mixture of many reasons, so it’s not just about having a talented designer. It’s not just about having very skilled craftsmen,” said Cheung. “It’s many factors — generations of culture, skills, understanding of brands, understanding of quality, understanding of who you are, communication skills, business concepts, everything — understanding of markets. They’re all part and parcel of what makes a brand successful.”

Even though China’s luxury brands have yet to gain the global prestige that Prada, Gucci, Dior, and countless other designer labels have earned, perhaps it’s only a matter of few decades before they will be just as coveted.

Cacharel has announced the appointment of Ling Liu and Dawei Sun as creative directors for all lines, encompassing womenswear, childrenswear, menswear and accessories. Both Chinese stylists will be starting their collaboration with Cacharel by working on the Spring-Summer 2012 collection, which is to be presented at the next Cacharel show as part of Paris Fashion Week in October 2011.

It’s one of the first major players in the Paris fashion industry to appoint creative directors from China. They both studied at la Chambre Syndicale de la Couture Parisienne school. Liu previously worked with Nicolas Ghesquière at Balenciaga and Stefano Pilati at Yves Saint Laurent in both womenswear and menswear. In 2005, she was awarded the Grand Prix du Trophees Saint Roch. Sun won the 2004 Grand prize in the Young Fashion Designer’s competition and the PFAFF Creative Prize. He started his career at Lolita Lempicka, and later worked at Balenciaga. He spent the previous five years working for John Galliano.

Next step for Cacharel, a Chinese-language website ?

The british fashion house Burberry and the French couture Louis Vuitton were dueling in a creative fight. It was already impressive to experience the new website fashionshow.louisvuitton.com, we again experienced a new storytelling writing of the Burberry fashion show in Beijing this April 13, created by its art-director Christopher Bailey.

Beijing and last Burberry 1,000 sqm boutique were chosen to represent the various technologies breakthrough. In a 2,000 sqm the audiences could see holographic models associated with real ones on the stage. Many other choregraphies and live shows, such as british rock-pop band Keane, DJ Tom Guiness and Chinese DJ ShanXi. An impressive broadcast made the show available in 200 other partners websites and many small cinemas prepared for the occasion at some Burberry boutiques.

Let’s see what Louis Vuitton is preparing back…

Oliver Petcu, managing partner of CPP Management Consultants Ltd, discusses in the online Luxury Society magazine about the various Chinese influenced initiatives by luxury brands and considers the effects on the Western market:

Ermenegildo Zegna’s catwalk show during the Milan Fashion Week which debuted late this week is all about China and the inspiration of the Great Wall. The Zegna Group is also preparing for a major event which will take place in Shanghai marking the 20 years of presence of the brand in China.

Prada presented last year a collection entirely dedicated to the Chinese market and produced a movie inspired by Shanghai’s history which was presented online worldwide as well as at the Prada Foundation Exhibition in Milan. Prada, which has seen a 51 percent surge in revenue from the Asian region in the first nine months of 2010, is planning to restage its Spring 2011 fashion show in Beijing on Jan. 22. Both Prada CEO Patrizio Bertelli and Miuccia Prada are expected to attend, and Prada plans on creating a series of new items specifically for the event.

Chanel’s first fashion show in Shanghai included European models wore yellow face make up to play Chinese characters. Lagerfeld defended this as a reference to old films. “It is an homage to Europeans trying to look Chinese,” he explained. “Like in ‘The Good Earth’, the people in the movie liked the idea that they had to look like Chinese. Or like actors in ‘Madame Butterfly’. People around the world like to dress up as different nationalities.”

Dior created last year an advertising campaign dedicated to the Chinese market, which later proved controversial due to discrimination issues. Chinese top model Tang Wei who appeared on the Chinese Vogue cover is a regular model for the shows of Dior or Ferragamo in Paris and Milan, as well as for all luxury fashion shows that take place in China.

Marc Jacobs’s latest collection for Louis Vuitton is inspired by Shanghai, yet instead of the sophistication that usually comes from fashion’s wonder boy, the clothes were bogged down with Oriental stereotypes. And so is the entire 2011 advertising campaign of Louis Vuitton, entirely Chinese inspired. Fashion critic, Suzy Menkes wrote, “By the time the first models had sashayed out in slim dresses slit to reveal the leg, you didn’t need a master’s in Mandarin to get the message that China is hot retail property for Louis Vuitton.” As luxury brands expand to different parts of the world where so many people cannot read English or French, they can recognize and remember initials better and that is why, it is obvious that brands should not create special collections, but rely on the amazing power of the logos.

Oliver does not appreciate all efforts made by luxuty brands to adjust to the China market.

But just how far can this ’’Chinese’’ spell over collections and advertising go for the top luxury brands without producing a negative impact on sales in the U.S. or Europe. Even if the actual fashion show takes place in China, obviously targeting Chinese consumers, the news with images travels at light speed through the internet worldwide. For instance, I believe Louis Vuitton’s 2011 campaign no longer has a subtle or implicit Chinese inspiration but the entire ultra bling product line is also targeting Chinese. The traditional LV monogram is replaced by huge VUITTON letters the size of the entire bag. The atmosphere depicted is one of overt show off and bling. This type of branding is considered bad taste, not only in the mature markets but in the young markets such as Eastern Europe, where the financial crisis has made people think twice before wearing an overtly branded product.

The fact that China is becoming the number one market for many international luxury brands provides a financial motivation for brands to adopt such strategies. However, I wonder how, in long term, luxury consumers in mature markets such as the U.S. or Europe will react to this ‘’Chinese influence’‘. From the Chinese consumers in all major luxury stores in Paris or Milan, the Chinese sales assistants in stores from New York to Dubai, the Chinese inspired advertising, to the Chinese models and actresses on all major catwalks, China is everywhere! and you can’t miss that on fashion blogs, web sites (lifestyle or business) oriented, it all sums up to a phrase : ‘’Luxury is Chinese’’

We don’t believe that China influence are going too far. The whole Asia is embracing all aspects of luxury universes.

In 2010, the New York based agency Pao Principle has recruited a proprietary panel of China beauty buyers for the purpose of understanding their attitudes and usage about beauty products. The findings from this report are helping beauty companies better understand what is needed to succeed in this market. 1,014 panelists completed the survey incentivized by prizes donated by Oscar de la Renta, the study sponsor.

Here are some key findings:

• Prestige consumers are concentrated in Shanghai, are older and tend to either own their own business or work in middle management positions for an SOE or multi-national corporation.
• Mass consumers tend to live either in Beijing or Guangzhou and are primarily students
• Education and training are key to gaining market share as beauty is still relatively new in China
• While skincare usage is high and begins at a relatively early age, color cosmetics and fragrance usage begins in university
• Chinese beauty buyers rely on word of mouth from their friends and family as their primary source of information
• Brand loyalty is relatively low although skincare brands from Avon and Olay have successfully instilled loyalty among their respective consumers
• While mainland Chinese beauty consumers overall did not appear to exhibit price sensitivity, some brands such as Maybelline, pricing can potentially impact their consumption

Given the complexity of doing business in China, there have been many success stories and missteps along the way. This study explains some of the 2010 failures and brand missteps:

• MAC
  • They have had difficultly in communicating their message.
  • As a result, Chinese beauty consumers are confused as they don’t understand MAC’s message
• Clinique Happy
  • Chinese love the fragrance of this luxury brand. However, after mass advertising, has gradually has lost its image as a premium brand.
• Elizabeth Taylor White Diamonds
  • Indian rose ingredient is not very attractive to the Chinese.
  • Average packaging,
  • Insufficient advertising.
• Lancome Trésor
  • Lancome is not perceived as a professional in fragrances
  • Insufficient advertising (fixed since with a campaign started late 2010)

For further information you can get the whole study summary at the study dedicated website, made by Pao Principle.

Stars and spokepersons opened the first exhibition of Chanel in Shanghai, at MoCA. Curated by Jean-Louis Froment, a well-known figure in the contemporary art and design worlds, the new exhibition highlights the creative dimensions of the House of Chanel throughout history. Culture Chanel is going back to the house roots and shows how it transformed across the differentes eras of the 20th century, while also showing its impact on our modern societies in Europe, Americas and Asia.

The exhibition interprets Mademoiselle Chanel’s universe through her designs, her iconic pieces and her literary and artistic inspirations. Delving into her brushes with poets Jean Cocteau and Pierre Reverdy, painters Pablo Picasso and Salvador Dali and composer Igor Stravinsky, ‘Culture Chanel’ has been developed around five themes: Origin, Abstraction, Invisibility, Liberty and Imaginary.

Dressed by Chanel house, Anna Mougialis and Chinese artist Zhou Yi met each other and introduced the exhibition.

A must see for fashionistas and design fans alike.

Culture Chanel — From January 15th to March 14th 2011, The Museum of Contemporary Art, 231 Nanjing Road (West), Huangpu, Shanghai, China

Fashion designer Diane von Furstenberg has keen instincts and the savvy to reinvent herself as a designer, and over the years, she has become one of the most influential people in American fashion. Now, DVF has her sights set on China.

Her ambitious plan to get her name out and wow the Chinese includes an upcoming exhibit of her career retrospective, Journey of a Dress, in Beijing from April 2 to May 14, in a renovated factory in the 798 District. China’s leading artists will join and add their own portraits of her. Pulling out all the stops, she planning private parties, a dazzling evening gala, and of course, lots of celebrities.

She’s also having her 1998 autobiography, Diane: A Signature Life, translated into Chinese by good friend Hong Huang, known as “China’s Oprah.”

Meanwhile, Diane von Furstenberg opened the first of two new DVF boutiques in China in November 2010. The Beijing store, located in the Shin Kong Place Mall, is the thirty-seventh free-standing boutique for DVF, and offers a full range of products, including ready-to-wear, accessories, shoes, handbags, eyewear, books and small leather goods.

Last year, she told the New York Times, that soon China will be buying US products, instead of US buying theirs: “‘Oh, the Chinese buy everything.’ I mean, this China thing — I think it’s going to happen, like, tomorrow morning,” she said.

Source: The New York Times, via Red Luxury.

VIVE’s experiment in selling premium “made-in-China” cosmetics was risky. So how has Shanghai VIVE been received since its official relaunch after 6 months existence ? Founder Demos Chiang, grandson of Chiang Kai-Shek, explains the strategy of the brand:

With its 1080 yuan (US$163) “Yurong cream” and 220 yuan ($33) “Xiren” soap, Shanghai VIVE is clearly positioning itself as a true luxury brand. Shanghai VIVE’s appeareance on the scene means that China’s lack of a home-grown luxury cosmetics brand has come to an end.

In its comeback campaign, Shanghai VIVE decided to continue to use the “Qipao calendar girl” image originally used in the “Two Sisters” days. Meanwhile, parent company Shanghai Jahwa hired DEM Inc. to create the new logo, product packaging and store design. The grandson of Chiang Kai-shek, DEM Inc. founder Demos Chiang has become a key part of Shanghai VIVE’s brand’s resurrection. This is not only because he’s a popular media figure and writer, but also because of the international perspective of his design team.

When preparing Shanghai VIVE’s design, Demos Chiang said he did a lot of research about 1930s Shanghai, while also studying popular fashion magazines at the time. Finally, Chiang settled on a black and rose-red motif for the brand, feeling it best depicted the mysterious and sexy nature of Shanghai women.

Despite the success of Liushen and Herborist, Shanghai Jahwa doesn’t want to follow their model with Shanghai VIVE. In contrast to Herborist, Shanghai VIVE doesn’t use herbal ingredients as a selling point. Rather, it uses culture as its main selling point.

Currently, all of Shanghai VIVE’s packaging is imported from France, as “no domestic suppliers meet our requirements,” according to Lei Yuanzong of the brand’s design center. Added Lei, “It’ll probably take 10 years for China to develop its own luxury capabilities.”

Nonetheless, Shanghai VIVE has begun to attract attention from Europe and the US, though the brand isn’t yet available overseas.

Source: Jing Daily