CHINA NEWS BRIEF: 29 Jan 2024

Porsche on January 27 unveiled Eileen Gu as the brand’s global ambassador. In accompanying promotional materials, Gu showcases Porsche’s performance on the ski slopes. Her experience of racing and pushing the limits in skiing competitions aligns with Porsche’s brand philosophy. Gu already represents Louis Vuitton, Tiffany, and IWC. The announcement follows the release of the automarker’s its first all-electric SUV, the Macan.

On Sunday, Estée Lauder announced Chinese actress Xin Zhilei as an ambassador for its cosmetics line and released a major advertising campaign featuring her. Xin has approximately 12.93 million followers on Weibo and is one of the main cast members in the recent popular TV series Blossoms Shanghai (繁花), directed by Wong Kar-wai. Estée Lauder is an official sponsor of the TV series. Some analysts suggest that Estée Lauder’s intention is to connect with Chinese consumers through this TV series and redefine its position as a leading high-end beauty brand.

Chinese high-end fragrance brand To Summer (观夏) opened a new store in Wuxi, Jiangsu, on January 27 in collaboration with Wuxi Henglong Plaza. The new space is located at the site of the South Square Chenghuang Temple’s former West Annex. Positioned as a high-end niche brand that produces plant-based fragrances, To Summer operates 10 stores nationwide.

JD Worldwide, a subsidiary of JD.com, has opened its first self-operated direct procurement warehouse for fashion goods in Paris. Located in Val-d’Oise, this facility will house fashion merchandise from European countries like France, Germany, the UK, Italy, and Spain, featuring a wide range of product categories, including apparel, beauty products, jewelry, and luxury items. The move is part of JD.com’s cross-border e-commerce strategy that aims to help European brands enter the Chinese market by providing efficient fulfillment solutions. The company also launched a dedicated online store linked to the Paris warehouse, offering faster delivery and authentic product verification through JD’s Smart Check service, enhancing the shopping experience for Chinese consumers. JD.com’s extensive operational footprint includes over 1,600 warehouses worldwide.

1017-ALYX-9SM, led by Matthew M Williams and Hongkonger Adrian Cheng, is relocating to Paris and has revealed further plans. It will present separate men’s and women’s collections at Paris Fashion Week while exploring innovative ways to engage audiences. The brand emphasized its commitment to women’s fashion and plans to expand and democratize its product range in key cities. It will focus on direct-to-consumer releases and in-person activations to connect with their community.

Outdoor sports brand Descente earlier this month opened its first brick-and-mortar store for children aged seven to 14, in Nanjing’s Deji Plaza. The brand has also partnered with 12-year-old skiing sensation Zhou Yizhu to promote its entry into the children’s sports market. The move reflects the brand’s optimism about the high-end outdoor children’s clothing market, a sector that has been growing steadily.

In 2023, China likely lost its position as the top exporter to the US for the first time since 2006, with Mexico surpassing it amid shifting supply chains due to tensions between the two largest economies. US imports from China dropped over 20 percent in the January-November period, accounting for 13.9 percent of total US imports, the lowest share since 2004. Mexico is expected to lead for the full year for the first time since 2000, with imports from the country on track to reach a record high. The US is diversifying its suppliers, particularly in products like consumer electronics, reducing reliance on China. This trend aligns with the US administration’s “friendshoring” strategy and ongoing tariffs on Chinese products. China is responding by seeking new export markets and reducing reliance on the US.

Global luxury conglomerate LVMH saw its stock price surge by nearly 13 percent to $388.8 billion last Friday following the French luxury group’s record annual profits, which led to CEO Bernard Arnault’s personal wealth to increase by $23.4 billion to $207.6 billion, surpassing Tesla founder Elon Musk’s $204.7 billion, once again becoming the world’s richest individual.