The last 12 months have seen a wide variety of China-related activity in the luxury space – from mergers and acquisitions to evolving brand strategies. The Editorial Director of Vogue China, Angelica Cheung, helps make sense of why China is expanding its unique language of luxury to include European influence, including the acquisition of established houses such as Bally or Lanvin.
“Many global companies are huge in terms of sales, stores, and revenue, but they lack sophistication,” she explains of the East looking to the West. “So they look for top-notch designers and fashion brands to elevate them.”
Luxury brands can maintain their position in China, but they must learn from their smaller European counterparts, Cheung says: “Over time, Chinese investors will understand the concept of these European companies. Through meeting with designers, managers, and operation teams, they will build more contacts, resources, and understanding.” First-hand experience through digital interaction, according to Cheung, is crucial to understand a brand’s DNA and how its traditions place it in a “multi-layered and sophisticated” market where customers are tuned in to exactly what’s out there.
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