Luxury Industry Insights & Best Practices in China Market November 2023

In November, top luxury brands focused on the following key themes: Luxury Brands Initiatives During Double 11 Shopping Extravaganza (D11), and Luxury Brands Shine at the China International Import Expo (CIIE).

Overview

Curio Eye™ Brand Index: Top 10 best performing brands

The Top 3 best-performing brands in November were Louis Vuitton, Dior, and GUCCI, the same as last month.

Louis Vuitton‘s engaged brand ambassador Teens in Times to share the Art of Gifting collection, catering to Gen-Z preferences and generating a buzz among fans. Furthermore, Louis Vuitton garnered significant attention by strategically hosting the Men's Pre-Fall 2024 Show in Hong Kong SAR at the end of November.

Dior organized the ART’N DIOR exhibition in Shanghai with the debut of the “DIOR LADY ART # 8” artist collaboration series with brand ambassadors attending the opening ceremony. In addition, Dior held a lighting ceremony in the Shanghai Zhangyuan boutique to celebrate Christmas.

Gucci Flora launched the Alchemist’s Garden pop-up in Shenzhen, and brand ambassador Lu Han was present. Celebrities dressed in GUCCI attended events and awards also drew attention from the public.

Armani, Versace, and LOEWE entered the Top 10 list in November. Versace has officially announced its global ambassador Rosy Zhao which attracted wide discussion. Similarly, Bally's ranking rose by 3 places thanks to the birthday of its brand ambassador, Roy Wang, and the promotional activities related to his styling for D11.

Luxury Industry Trends

Luxury Brands Initiatives During Double 11 Shopping Extravaganza (D11)

Luxury giants LVMH, Richemont, Kering, Hermès, and Chanel launched 100,000 new products during this year's D11 shopping event(1).
In the first hour of sales, consumer orders for luxury goods on Tmall surpassed last year's figures by 1.5 times.
Top luxury brands like Gucci, Burberry, Ralph Lauren, and Montblanc saw significantly higher sales compared to the same period last year(2).

1 Data Source: Jing Daily - Gucci’s debut, digital avatars, and a marriage wave: Luxury brands welcome Singles’ Day 2023

2 Data Source: XINHUANET - "Double 11" offers diverse ways for participation in high-end consumer goods, welcoming a prosperous start

Luxury brands employed diverse campaigns to boost their D11 performance:

Elevating D11 Frenzy with Brand Ambassador

Bally collaborated with Global Brand Ambassador Roy Wang to create a D11 look to promote the brand's D11 event and inject an air of youthful vitality.
LANVIN upgraded Cheng Yi to be the brand’s first global brand ambassador ahead of D11, signifying the brand's emphasis on the Chinese market and careful planning of this D11 event.
Last year, Valentino made waves by inviting Brand Ambassador Guan Xiaotong to an event in Aranya. Building on this success, Valentino has once again enlisted Guan Xiaotong for the D11 special edition with creative copywriting.

*Source: Bally Official WeChat and Douyin, LANVIN Official Weibo and Tmall, VALENTINO Official WeChat.

Exclusive Offer and Interest-free Installment

Words such as limited edition and exclusive were also frequently used during D11, playing into consumer psychology.
Gucci made its first-ever appearance at Tmall Luxury D11, offering the option of up to 24 months of interest-free payment. The brand also provided packaging, product engraving, 3D shopping cards, and other customized gift services.
Burberry has collaborated with Tmall Luxury for nearly 10 years. This time, it offered a variety of gifts for customers during D11.
- Limited-edition cosmetic bags
- Brand stickers, customized mugs, and other gifts
- Interest-free installment

Applying Technology to Highlight Brand Image

Valentino, COACH, and Canada Goose partnered with Tmall to create AI-generated posters.
Ralph Lauren and MCM joined forces with Tmall to showcase their brand character through AIGC.
Balmain, Weekend Max Mara, and Burberry teamed up with Miaoya Camera for virtual try-on and personalized digital polaroids.

*Source: Tmall, Tmall Weibo, Tmall Luxury Weibo.

Food for Thoughts

Opportunities

Luxury brands providing interest-free installments is a great way to provide practical consumer benefit during D11
New selling models on RED
Multi-platform synergy drives traffic and increases exposure

Challenges

High return rate behind full reduction mechanism
Negative impact of excessive advertising

Luxury Brands Shine at the China International Import Expo (CIIE)

Brands Gather Together at 6th CIIE

The 6th China International Import Expo(CIIE) was held in Shanghai on November 5th, achieving a worth of 78.41 billion USD in tentative deals, up 6.7% from last year’s session(1).

Luxury groups and brands such as LVMH, Kering, Richemont, Burberry, Tapestry, and Dolce&Gabbana converged at the Expo, showcasing brand localization through their dedicated exhibition booths.

CIIE has become an Influential stage for luxury brands to cultivate the Chinese market, shaping the brand image and expanding influence.

1 Dao Insights - 78 billion USD in deals closed at 6th China International Import Expo

Diversity of Intangible Cultural Heritage & Cultural Integration

Culture serves as the key to unlocking the Chinese market and an abundant source of inspiration for continuous innovation.

At the 6th CIIE, driven by the growing cultural confidence among Chinese consumers, luxury brands have embraced Chinese culture, tapping into its rich cultural heritage and narrating their profound affinity with China to better connect with the local market.

Adapting to Society and Technology

Sustainable developments, technological innovations, and exclusive premieres are new tactics employed by luxury brands to captivate consumers' attention while also keeping up with evolving trends.

Campaign Best Practices

Tiffany x Shanghai Marathon

OVERVIEW

The Shanghai Marathon took place as scheduled on November 26, 2023, attracting over 30,000 passionate runners from China and abroad. Notably, it marked the first collaboration between Tiffany & Co. and the Shanghai Marathon. It’s also Tiffany's first endeavor in designing trophies and medals for a Chinese sports event.

Tiffany crafted trophies and medals for the top three male and female athletes, capturing the victorious posture of marathon runners as they sprint toward the finish line.
Iconic Shanghai landmarks were depicted on the awards, including the Oriental Pearl Tower, Shanghai Tower, Shanghai Jinmao Awards, and World Financial Center, reflecting the local essence of the competition.

Data Source: Finance. China

CURIOSITY SPOTLIGHT

Tiffany's Legacy in Sports Collaborations

In 1860, the brand was commissioned by the Woodlawn Racing Association to create the prestigious Woodlawn Vase for horse racing.
Tiffany has ventured into the world of e-sports to reach young generations, forging a long-term partnership with Riot Games for competitive gaming events.

Synergy through Collaboration

The Shanghai Marathon presented Tiffany with a unique opportunity to engage with a diverse range of participants, including enthusiasts of all ages and skill levels.
The presence of a luxury jewelry brand like Tiffany added an elegant touch to the event, creating a captivating atmosphere.

When Fashion Meets Sports

A noticeable rise in public interest in sports and health in the post-COVID-19 era.
Luxury brands are recognizing this trend and expanding their footprint in the sports industry. Balenciaga introduced a ski series, Chanel established ski pop-up stores, and Stuart Weitzman launched a new line of sneakers. These initiatives exemplify how luxury brands are embracing consumers' evolving lifestyles and attitudes.

Ami Paris Pop-up Cafés Debut in China

OVERVIEW

On November 10th, Ami Paris launched a pop-up store and café in Beijing’s Sanlitun Taikoo Li, while it also landed in two other Chinese cities through collaborations with coffee shops: SUNSET +a:b in Shanghai and Invisi in Chengdu. These spaces will remain open until December 8.

Inspired by the traditional Parisian café, the pop-up café in Beijing reproduced a miniature Haussmann-style building, transporting visitors to the streets of Paris with French elements like cobblestones and bistro chairs. The limited spots for experiencing the pop-up stores can be reserved through the official Ami Mini-P.
To celebrate the grand opening, Ami Paris hosted a party at Hanlin Academy, where celebrities like actress Yeung Chin-wah, actor Xu Guanghan, and singer Yu Jingtian attended. Adorned with French elements, the party also incorporated Chinese elements such as sugar-coated hawthorn art experiences and pipa performances.
Ami Paris also launched exclusive WeChat emojis called “AMI PARIS Meets Beijing”, blending the cultural essence of Paris and Beijing.

CURIOSITY SPOTLIGHT

“High-fashion cafes” have popped up across China in recent years, utilizing the concept of “brand lifestyle” to connect with consumers, share brand stories, and promote brand culture. In 2023 alone, renowned luxury brands such as Maison Margiela, Louis Vuitton, and Burberry have opened pop-up cafés in major cities like Beijing, Chengdu, Shanghai, and Shenzhen.

Cultural integration played a significant role in the Ami Paris brand narrative. As it expanded into China, Ami Paris embraced the local cultural elements of different Chinese cities. The opening party merged the essence of Beijing style with a French design. The design of the brand’s other two stores in Suzhou and Guangzhou (upcoming) also incorporate local culture: the fan and the tile.

Young consumers, particularly Gen-Z, are a new focus for luxury brands for their enormous potential. Ami Paris unveiled emoji packs, serving to captivate Chinese young consumers and integrate the brand into their daily lives.

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2023 November Industry Insights & Best Practices