Luxe.CO Intelligence conducted a research on 218 activities from 105 luxury brands in the Chinese Mainland during the second quarter of 2024 and selected the top five cases for industry reference, providing exclusive insights. (Note: Listed in alphabetical order by brand, not in order of importance)
Cartier Women’s Initiative (CWI) Award Ceremony Held in China for the First Time.
Luxe.CO Insights:
What impact do female entrepreneurs have on the world?
The “Cartier Women’s Initiative” (CWI) award ceremony in Shenzhen provided numerous answers to this question: endorsement, community, recognition… For 18 years, CWI has supported women entrepreneurs dedicated to addressing social and environmental challenges, inspiring them to create a better world.
Women play multi-dimensional and multi-level critical roles in societal development and are a significant force in driving economic growth. Their empathy, inclusiveness, and compassion bring new vitality and perspectives to the business world. Meanwhile, the challenges women face are urgent. How can companies, as key drivers of social change, align their actions with their words to empower women more effectively?
Beyond Cartier, an increasing number of luxury brands are actively working to unite and amplify women’s influence.
For example, Dior co-hosted the “Women in Film” forum with the 26th Shanghai International Film Festival to highlight the importance of women’s power in film development; Chanel exclusively supported the Sino-French female film project “Women in Creation” in Shanghai; IWC Schaffhausen hosted a women’s forum in Beijing, inviting female representatives from various fields to discuss “female spirit”; and Giada launched the podcast “Flower in the Rock,” inviting prominent women from different fields to discuss topics unique to this stage of their lives.
Women’s efforts to gain a voice in the business world require long-term effort and support from all sectors of society. For companies, the key is to practice their advocated values and take genuine actions to empower women. Undoubtedly, the active participation of women and the dedicated efforts of companies will jointly propel the business world toward goodness.
Chanel Forms Long-term Strategic Partnership with Power Station of Art (PSA) in Shanghai.
Case Insights:
By sponsoring the arts and cultural heritage preservation, luxury brands can reinforce their own spiritual values while demonstrating respect and support for local culture.
Chanel’s collaboration with the Power Station of Art (PSA) in Shanghai is a significant and in-depth cooperation with a Chinese cultural institution. The renovated smokestack and its annex will become an independent art space named “Gabrielle Chanel Space,” commemorating the brand’s founder, Gabrielle Chanel. This space will help preserve and promote the brand’s history and values and host various art exhibitions and events to facilitate cultural exchanges.
In addition to physical space upgrades, the partnership includes content enhancements, richer collections, and deeper research, indicating the long-term nature of the collaboration.
Chanel has always prioritized art and culture in its brand content development, supporting contemporary art innovators and new talents in China.
In early 2021, the Chanel Culture Fund was established, initiating a series of cultural and art sponsorships in China: In May, Chanel collaborated with the FIRST International Film Festival to launch the official special curation “FIRST FRAME”; in July, Chanel Culture Fund and the Power Station of Art announced the “New Cultural Producers” project; in 2022, Chanel partnered with the China Film Directors’ Association to launch the “Young Directors Support Program,” supporting young Chinese filmmakers.
This partnership signifies Chanel’s firm commitment to and investment in the Chinese market, laying a solid foundation for the brand’s long-term development in China.
This year, Chanel will host a series of major events in China, including the first retrospective exhibition of Gabrielle Chanel’s works in China, “Fashion Manifesto | Gabrielle Chanel,” in Shanghai this month; the 2024/25 Cruise collection fashion show in Hong Kong in November; and the 2024/25 Métiers d’Art collection show in Hangzhou in December. This is Chanel’s first Métiers d’Art show in China since 2009.
According to Chanel’s 2023 financial report, annual sales grew by 16% on a comparable basis to $19.7 billion, with operating profit at $6.4 billion. The Asia-Pacific market led the 2023 performance growth, contributing over half of the total sales.
Hermès Reopens its SKP Boutique in Beijing’s Central Business District.
Case Insights:
Hermès has always been cautious with its retail network expansion, progressing steadily in the Chinese market. However, subtle changes are noticeable in recent years: opening new stores in new cities, upgrading existing stores, and expanding store sizes to seek better locations.
In recent years, Hermès has renovated and expanded several old stores in China, such as the Shanghai Plaza 66 boutique, which has undergone three renovations and expansions (in 2007, 2012, and 2021). Last month, the expanded Lee Garden store in Hong Kong reopened. In Beijing, Hermès has completed upgrades and expansions of its boutiques in China World Mall, Peninsula Beijing, and SKP.
Globally, Hermès maintains its consistent strategy of “opening new stores” and “renovating old stores.”
In the first half of this year, Hermès opened new stores at Princeton University in the U.S., Mumbai in India, Bahrain in the Middle East, and Tokyo in Japan. Additionally, the stores in Gardens Mall in Kuala Lumpur, Malaysia, and Passage Pommeraye in Nantes, France, reopened after renovations.
These moves reflect Hermès’ commitment to “localized operations.” CEO Axel Dumas stated that loyal local customers are the main growth source for the brand, forming the basis of its business. The Asian market, particularly China, Japan, India, Southeast Asia, and the Middle East, stands out.
CEO Axel Dumas mentioned the brand’s store opening strategy at the beginning of the year: “Before deciding to open a store in a country/region, we first ensure there is a certain middle class and a very wealthy class. Today, we see the growth of the middle class in India and other Asian countries, allowing us to tap into the local market’s vitality and momentum through store openings.”
According to Hermès’ first-quarter 2024 financial data, quarterly consolidated revenue reached 3.805 billion euros, a year-on-year increase of 17% at constant exchange rates, with double-digit year-on-year growth in all geographic regions.
Patek Philippe Celebrates the Tenth Anniversary of Beijing Maison with a Exhibition.
Case Insights:
Patek Philippe is a leading name in watchmakers and one of the few family-owned independent brands. The Stern family has managed it for four generations since taking over.
Patek Philippe Beijing Maison, inaugurated in May 2014, is the second Patek Philippe Maison globally after the 2012 opening in Shanghai, comparable in function and status to the Patek Philippe Salon at the brand’s Geneva headquarters.
Notably, the fourth-generation heir of the Stern family and current Patek Philippe President Thierry Stern attended the tenth-anniversary celebration with his two sons, the fifth-generation family members, demonstrating their commitment to family heritage and the importance of the Chinese market.
Thierry Stern said: “Over the past decade, we have highly valued the service experience of Chinese customers. To meet the needs of Chinese watch collectors and enthusiasts for Patek Philippe timepieces, we have formulated a long-term strategy for the development of the Beijing Maison, including professional sales and customer experience, training watchmakers, and operating efficiently under the global unified standards and requirements of the Patek Philippe Seal.”
Moreover, the traditionally cautious Patek Philippe has recently accelerated its expansion in the Chinese market. In 2018, it launched a WeChat official account, the brand’s second official social account globally after its Instagram account in March 2018. In 2020, Patek Philippe published its first WeChat article, “Begin Your Own Tradition,” introducing the brand’s history and values and including links to its WeChat mini-program and official website.
In February this year, Patek Philippe also launched a Year of the Dragon red packet cover for Chinese consumers, engaging actively with customers during important traditional Chinese festivals.
This year, Patek Philippe’s production will remain steady at around 72,000 pieces. While Patek Philippe does not publicly disclose its financial data, Morgan Stanley and LuxeConsult estimate the brand’s sales in 2023 to be approximately 2.05 billion Swiss francs, a 14% year-on-year increase.
Prada Announces Director and Actress Jia Ling as New Brand Ambassador.
Case Insights:
Brand ambassadors are a crucial aspect of brand marketing. The collaboration between Prada and Jia Ling may seem unexpected, but they share a deep intrinsic connection:
As a highly popular actress and director in China, Jia Ling’s successful films demonstrate her strong market appeal. Her personal story embodies resilience and self-challenge, aligning with Prada’s message of female empowerment and independence.
Prada has a strong association with film and culture, collaborating with the popular TV drama “Blossoms Shanghai” to provide styling for the main characters. Prada’s partnership with Jia Ling further expands its exploration and dialogue in the cultural and artistic fields. Previously, Prada spent six years renovating the century-old Rong Zhai mansion in Shanghai, turning it into the group’s “cultural hub” in China, hosting various cultural exchange activities aimed at the Chinese market.
Prada’s collaboration with Jia Ling reflects a shift in luxury brand ambassador strategies: while a key consideration remains whether an ambassador can attract attention through their influence, the compatibility of the ambassador’s core values with the brand’s, and the ambassador’s ability to convey the brand’s philosophy and values to the market, are now essential factors.
Earlier, Prada’s celebrity collaborations expanded to include athletes. In 2022, Prada provided custom clothing for athletes Gong Lijiao, Li Zhixuan, Xiong Dunhan, and Yang Shuyu, and appointed Ma Long as a brand ambassador. In 2023, Prada announced Yang Shuyu as
a brand ambassador and became the official partner of the China Women’s National Football Team, providing formal and travel attire.
Prada Group recently released impressive financial data: for the first quarter ending March 31, 2024, retail sales increased by 7% year-on-year, contributing 77% of the group’s sales, outperforming market expectations.
| Image Credit: Luxe.CO Photography, Official Brand Channels
| Editor: Zhu Ruoyu
