pardon the seemingly random title, but it's a line from one of my favourite tori amos song "china", from what i feel is her best album to date, "little earthquakes". however china is the theme, as 'the business of fashion' points us to a rather interesting read: "China: The Biggest Opportunity for Luxury Brands in a Generation."
pic credit: reuters pictures
the article talks about the depegging of the chinese currency (CNY), and provided some statistics about the chinese consumer and the luxury market. without using too many financial jargons, here's how the change in the chinese government's policy on it's currency will affect the global retail industry:
china previously tagged it's currency against the USD. it's an economic tool which allows china and other developing nations to suppress the value of it's currency, thereby making goods cheaper to the outside world, boosting exports and stimulating domestic growth. hence we've been seeing a mass influx of "made in china" garments. manufacturers said "labour and materials is cheap in china", that's because china made it so.
with the fast growth experienced in recent years and the chinese yuan suppressed at low values, the depegging will make the yuan appreciate in value. which means 1 CNY will now buy more USD (and other currencies) as compared to periods before depegging. this means more power to the chinese consumer. imports would appear cheaper so foreign companies are more than happy to sell. the stronger currency would also further encourage travels. europe, with it's economic mess and weakening currencies, will stand to benefit from (even more) chinese tourists.
amazing how the policies of one country could have such far reaching effects on the global economy.
louis vuitton spring summer 2011 / louisvuitton.com
everyone knows, and everyone is talking about how china will be, or is the next big thing. i am always intrigued how the luxury goods industry would react. do you subtly introduce more oriental motifs or eastern flavours into your collections? louis vuitton's recent spring 2011 collections "imagined a digital bohemian traveling the world, composing an eclectic personal style with no boundaries, luxe clothes for the well-heeled contemporary traveler." a very open interpretation which sees the vuitton traveller heading east, accessorised with orientally inspired silk scarves and bags.
left: bag from louis vuitton spring 2011
right: gucci shanghai bag 2009/2010
i've always wondered, should designers do an obvious shift in designs to suit the far east market, or is it actually the challenges of the PR/marketing/distribution team to sell the designers' vision to a new market (what designers want, what companies need). of course, most tread somewhere in the middle. but i see the above reinterpreted louis vuitton keepall as a very obvious attempt to win over the chinese market. inspired by gucci's previous attempt with their 'boston' bag created specially for their shanghai store opening? gucci's 'boston' was limited to shanghai (and i really do love the design), but vuitton's new keepall will be a global affair. will it alienate shoppers from other regions?
for the record, i desire that silk scarf, but i find that keepall to be mildly patronising.
for the record, i desire that silk scarf, but i find that keepall to be mildly patronising.
hermès to launch "shang xia 上下" in china / shang-xia.com
i previously wrote about my thoughts on hermès launching a new company called "shang xia 上下" (please read/re-read, shameless but i thought it's rather good!) . it's first shop due to open in shanghai in september this year, the collections will feature chinese artisanal know-hows and the use of exquisite chinese materials. as mentioned by hermès to a french newspaper, the objective of "shang xia 上下" is to offer cheaper products, as well as capitalising on the growth of the luxury market in the country in 2010. the new brand will be tailored for the chinese market where hermès lags behind its competitors. i am actually really intrigued, and keen to see what it has to offer.
with the exploding population and restrictive one-child policy, families now have rising disposable incomes (less mouths to feed). with the sole child standing to also inherit previous generation's assets (both parent's savings), it is indeed more power to the chinese consumer.
at a dinner party last month, i was brushed off for mentioning the russians and their new-found wealth. is this new found wealth for the chinese? there don't seem to be a point in this article, but i am honestly intrigued and fascinated about the roaring tiger (no longer a sleeping giant). it is this part of fashion/business that excites me. with me based in london but roots tracing back to china, this just adds another dimension to my fascination.
"china, all the way to new york, maybe you got lost in mexico. i can feel the distance, i can feel the distance getting close." ~ tori amos 'china'
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with the exploding population and restrictive one-child policy, families now have rising disposable incomes (less mouths to feed). with the sole child standing to also inherit previous generation's assets (both parent's savings), it is indeed more power to the chinese consumer.
at a dinner party last month, i was brushed off for mentioning the russians and their new-found wealth. is this new found wealth for the chinese? there don't seem to be a point in this article, but i am honestly intrigued and fascinated about the roaring tiger (no longer a sleeping giant). it is this part of fashion/business that excites me. with me based in london but roots tracing back to china, this just adds another dimension to my fascination.
"china, all the way to new york, maybe you got lost in mexico. i can feel the distance, i can feel the distance getting close." ~ tori amos 'china'
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