Catch up with the brand and markets news you might have missed this month: China’s new tax policy means tougher trading for cross-border retail and luxury brands blame a drop in Chinese travellers for lackluster sales in Europe.
News from Asia
• A spending freeze by Chinese tourists is scaring Europe’s luxury industry, but regular travellers are expected to continue to shop for May and October national holidays according to Global Blue’s inaugural Globe Shopper Report: China Edition, reports Quartz
• China’s new tax policy means tougher trading for cross-border retail, according to Jing Daily
• Travel brands are dropping the ball when it comes to Chinese travellers, reports Skift
• Europe’s luxury retailers need to be get mobile-savvy to reach Chinese travellers, according to Jing Daily
• Credit cards are the new growth currency for China’s ‘moonlight’ generation who are young, middle-class, tech-savvy and embracing short-term debt, reports Reuters.
• Japan has opened the floodgates for fingerprints as one-touch currency, reports The Telegraph.
• Demand for cruise holidays is being driven by Chinese who have been fuelling double-digit growth since 2013, making them the industry’s fastest-growing market, finds Quartz.
• In South Korea duty-free retail is a contentious subject as this sector heats up in Seoul and now, Japan, according to Asia Nikkei.
• For most large luxury brands, the retail expansion opportunity in China is over. Michael Kors, Hermes and Tiffany are the only exceptions to underexposure there, writes Luca Solca, luxury analyst at Exane BNP Paribas in The Business of Fashion.
• ‘Asian consumers are leading the charge in the outbound tourism market,’ says Aimee Kim, a partner at McKinsey & Co, speaking at the Conde Nast International Luxury Conference in Seoul, earlier this month. ‘K-Beauty is one of Korea’s biggest draws and this is the predominant product category benefitting from the surge in duty-free retail,’ she says according to Vogue.
• ‘Western luxury wouldn’t be where it is today without Japan,’ says Michael Burke, CEO of Louis Vuitton in a letter to the Financial Times on the occasion of the French luxury house’s new Volez, Voguez, Voyagez exhibition in Tokyo.
News from Russia
• The ruble rallied against the US dollar earlier this month as oil prices rose and investors speculated the central bank will refrain from cutting the highest interest rate among key emerging markets in Europe, the Middle East and Africa, reports Bloomberg
News from Europe
• Fewer wealthy Chinese tourists travelling to Europe following Paris and Brussels terror attacks have hit Burberry’s sales for Q1, as it warns of a ‘challenging’ environment for its full-year profits into 2017, says The Guardian.
• Luxury group Kering reported less-than impressive Q1 sales as slowing tourism and the strong dollar have weighed on demand for key brands Gucci and Bottega Veneta, reports Bloomberg.
• Burberry and Cartier are the top email marketers according to a new report from ContactLab and Exane BNP Paribas, reports Luxury Daily.
• London is the number one destination for cross-border retail expansion, while Asia-Pacific is a priority for global footprint, according to property firm JLL’s Destination Retail Report 2016, according to Luxury Daily.
• Selfridges is backing the ‘athleisure’ trend with a huge 37,000 sq ft department launch: Body Studio hits the ground running, says Retail Week