Daily Archives: October 7, 2009

New Figures On Mainland Chinese Spending Bode Well For Luxury Retailers

Pao Principle Study Shows That Luxury Market Has Less To Fear In The Next Year Than Expected

"Tiffany is King" in mainland China, according to Pao Principle. Tiffany opened boutiques in Beijing & Shanghai in 2006

"Tiffany is King" in mainland China, according to Pao Principle. Tiffany opened boutiques in Beijing & Shanghai in 2006

With luxury retailers looking for any good news in a still-tough market, studies by several organizations in recent months have shown that things are a little less ghastly than expected, particularly in Asian and other emerging markets. The newest of these studies, carried out by business consulting firm Pao Principle, indicates that recent spending trends in mainland China should please luxury handbag, watch, and jewelry producers.

From Travel Agent Central:

According to…Pao Principle, almost 90 percent of individuals surveyed had bought a designer handbag in the past 12 months. Unsurprisingly, men accounted for luxury watch purchases at a ratio of almost two to one over women.

Out of those surveyed who had purchased fine jewelry, Tiffany was king, with almost a third of Mainland Chinese who had purchased fine jewelry in the past 12 month turning to the store for their wares.  Necklaces were the accessories of choice, with “white gold” reigning supreme in overall jewelry purchases.

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Interview With Chinese Contemporary Artist Zhang Xiaogang: Recording the “Relics of Life”

Excerpts Of Chinese Art Blog Artron’s Interview With Zhang Xiaogang Shed Light On His New Exhibition, “The Records”

Zhang Xiaogang feels the art environment in Beijing is worlds away from that of New York

Zhang Xiaogang feels the art environment in Beijing is worlds away from that of New York

We recently profiled Chinese contemporary artist Zhang Xiaogang’s new exhibition in Beijing, which breaks dramatically from his earlier work by incorporating sculpture and mixed media pieces. Last week, China-based art site Artron (Ya Chang Art Network) sat down with Zhang to discuss the new direction his art is taking, and the ways that the rapidly-shifting Chinese culture affects his creative process as well as his views of the American and Chinese art worlds. 

Ya Chang Art Network: What’s the basic idea behind this new exhibition? 

Zhang Xiaogang: Actually, the idea is basically to “revise” a continuing exhibition. But this idea is one that I’ve paid pretty close attention to for several years, like I have with topics related to “memory.” The people’s lives are changing quickly, so now we’re facing our memory and our memory loss, which all results in a number of psychological reactions associated with these and other matters. So it seems that by creating pieces concerned with memory — since our lives are changing so fast, resulting in a constant loss of our memory and nostalgia, which begins at a very young age — it all comes back to how I was always concerned with the idea of memory, an idea that has concerned me even more in recent years. 

In the past a series regarding “memory and starting to remember,” then a series about “inside and outside”, later became “amendment” in my new works — the new works are a deeper continuation of the old works. I hope to continue this theme, to a relatively deep degree, to see if there are any other possibilities. This is the basic idea [of this exhibition].

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Valentino Sees Surge In Demand In China

Luxury Retailer Notes That Stabilized Sales, Huge Growth In Greater China Have Fueled Asia Expansion

Italian fashion company Valentino is looking to expand quickly in Asia, with a focus on China & Hong Kong

Italian fashion company Valentino is looking to expand quickly in Asia, with a focus on China & Hong Kong

Most global fashion houses have, over the years, worked hard to make something of a foothold in the Chinese market. As we’ve written before, one of the first major Western fashion companies to enter China following the “reform and opening” policy of the late 1970s was Pierre Cardin, who began selling in China in 1979. Since then, major fashion boutiques from around the world can be found in China’s largest cities, and some have progressed into smaller (but still large by most standards) second- and third-tier cities throughout the country. Despite major setbacks for some retailers in formerly reliable markets like Japan — where companies like French Connection and Versace have recently closed down operations — and a drop in demand in the American market (although that has, according to reports today, stabilized for many luxury companies), the surge in demand for certain designers in the Chinese mainland should soften the blow in revenue that these companies are experiencing as a result of the global economic downturn.

The Valentino Fashion Group — which includes the Valentino, Hugo Boss, and Marlboro labels, today announced that the company has benefitted from the quick rise in consumer demand throughout China. From Bloomberg:

Revenue in China and Hong Kong jumped 40 percent in the past month, and the company expects that pace to continue, Sassi said backstage after the show…

Although sales in Japan were described today by Valentino’s CEO as “not that bad,” the company’s major focus is store expansion in mainland China, Hong Kong, and Southeast Asian markets like Singapore:

[Valentino CEO Stefano Sassi] said the group is opening Valentino stores in Asia — Singapore, China and Japan. “These are not great times to open shops, but we are going ahead with what needs to be done.”