luxury insights china tm
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luxury insights china tm
LUXURY INSIGHTS CHINA TM Thank you for downloading this complimentary article from Luxury Insights China, we hope that you find it of value to your business. Why subscribe to Luxury Insights China? This is how our subscribers describe it to us……… Luxury Insights China is like having an expert member of staff to brief " Reading me for an hour each month about the Chinese luxury market and its consumers. The opinions and factual data it contains help to stimulate my thoughts as to the ways we address this critical market. Excellent! " The content of Luxury Insights China is exclusively written by the research and consultancy team and is based on their expert local knowledge, practical experience and face-to-face discussion with professionals working in China. Each report reviews market activity over the previous month, and issues currently affecting the sector Luxury Insights China is issued ten times per year, in addition to which are four special reports covering specific sectors of the market. Subscription Subscription to Luxury Insights China costs £500 per year. Further Subscription information and payment information can be found here http://www.fdkginsight.com/luxury-insights-china/subscription/ [email protected] © 2013 FDKG Ltd. LUXURY INSIGHTS CHINA TM July 2013 Special report The 2013 H1 Brand Reach Review The 2013 H1 Brand Reach Review 4 sectors 144 luxury brands 3271 stores in China In December 2012, the Luxury Insights China team carried out the first benchmarking of luxury brand expansion across Mainland China. The team had been monitoring 144 brands across the automotive, fashion, watch and jewellery sectors, and recorded their retail coverage and as a result, the retail brand density in cities and regions of the country. The timing of this assessment was specifically chosen, at the end of the year in which the luxury market in China reached a tipping point as a result of political changes, and consumer attitude adjustments that had been building up over the previous 12 months. Many luxury brands had started to see a slowing in business in the previous six months, and we aimed to benchmark store and dealership coverage as part of an on-going monitoring process to assess, sector, brand and city developments over the coming years. At the end of 2012 and early 2013, many luxury brands and groups made major changes to their strategies LUXURY INSIGHTS CHINA TM in terms of both store openings, and promotional activities, as sales decreased and margins were hit. Some stated that they would not open more stores, but focus on the business of those they had, whilst others took the slowing market and hesitation of some of the larger and better established players to push forward aggressively with expansion plans, so how have things progressed in reality? The 2013 H1 Brand Reach Review, summarises the findings of the data comparison over a six month period, which in China is a lifetime when compared to more developed markets. We can see how retail density in cities has changed, how certain cities have benefited by significant store opening, whilst others have seen stores close and retail levels diminish. Looking at the four sectors monitored, as would be expected watches has been hit the hardest by regulation related to government gift giving practices, but even within fashion, there are indications of the challenges facing less well established global brands here in China. 1 July 2013 ©FDKG Ltd. The 2013 H1 Brand Reach Review Retail density demographics In January 2013, we benchmarked the density of luxury brands by city to enable us to identify future trends and hotspots. This graph compares the average retail density benchmark with that of the first half of this year. We can see a more obvious decline in density in tier one cities such as Beijing and Shanghai due to the larger numbers of stores. This decline does continue into some of the tier two cities, although at a relatively lower rate. However, we can see Tianjin, Dalian, Nanjing and Wuhan all moving up the density scale at the expense of Guangzhou, Shenzhen and Chongqing. 20% 18% 16% 14% 12% 10% 8% 6% 4% Luxury auto LUXURY INSIGHTS CHINA Luxury watch TM Luxury jewellry Luxury fashion H1 average 2 January benchmark Chongqing Taiyuan ↑2 Wuhan Kunming ↓1 Harbin ↑4 Shenzhen ↓2 Nanjing ↑1 Guangzhou ↑1 Dalian Tianjin Hangzhou Chengdu Shenyang Shanghai 0% Beijing 2% ↓5 ↑↓ up or down the city ranking (i.e.↑2: two places up) July 2013 ©FDKG Ltd. The 2013 H1 Brand Reach Review Brand reach by city and sector As brands expand out across the country, we can see the top five cities in terms of density remain consistent, although tier one cities of Beijing and Shanghai have lost some stores, the rankings of cities below this group has changed significantly, the biggest names moving down the rankings being Guangzhou and Chongqing. Entering in this review are the cities of Ningbo and Changsha, both because of the increased presence of luxury auto dealerships. Leaving the list from the benchmark of January is the Inner Mongolian city of Ordos. LUXURY INSIGHTS CHINA TM 3 July 2013 ©FDKG Ltd. Luxury Automotive Luxury car dealership density ranking by city City Dealer total Overall increase 1 — Beijing 23 21% 2 — Shanghai 18 6% 3 — Chengdu 12 20% 3 ↑2 Wuhan 12 50% 5 ↓1 Hangzhou 10 11% 6 ↓1 Guangzhou 9 13% 7 — Wenzhou 8 14% 7 — Shenzhen 8 14% 7 — Chongqing 8 14% 7 ↑3 Tianjin 8 33% 7 ↑3 Qingdao 8 33% 7 ↑3 Kunming 8 33% 7 ↑7 Nanjing 8 60% 7 ↑15 Ningbo 8 300% 15 ↓5 Xiamen 7 17% 15 ↑1 Changsha 7 75% 17 ↓1 Shenyang 6 50% 17 ↓1 Xi'an 6 50% 17 ↑2 Zhengzhou 6 100% 20 ↓6 Ordos 5 0% 20 ↓1 Dalian 5 67% Store No. 6 New in Beijing: 1 Bentley, 1 Maserati, 1 Porsche and 1 Morgan 4 2 New in Wuhan: 1 Maserati, 1 RollsRoyce, 1 Brabus, 1 Aston Martin LUXURY INSIGHTS CHINA The tier two city of Ningbo is known for its wealthy business people, and has clearly been seen as an important target for many luxury car brands as they expand. The wealthy of Ordos on the other hand, and in particular owners of mines, have found their personal wealth decrease in the past six months, which has in fact caused many to sell their luxury cars on the second hand market. New dealer openings TM 4 Urumchi Foshan Changchun Suzhou Dalian Xi'an Shenyang Kunming Qingdao Tianjin Chengdu Dongguan Zhengzhou Changsha Nanjing Wuhan Ningbo 0 Beijing New to Ningbo: 2 Ferrari, 2 Maserati, 1 Bentley and 1 Brabus The relative increases in coverage for cars are with a few exceptions much larger than those of the other sectors, and we can see certain cities such as Ningbo becoming a real focus of new dealerships, whereas Ordos in inner Mongolia appears to have peaked and become less active for luxury automotive brands. Shaoxin Ranking Although the general luxury sector has slowed, many automotive brands continued with their planned expansion, in part because contracts have been signed and cannot be easily reneged upon, and because the volume of potential consumers in tier two and three cities for luxury cars has increased as has the demand for local 4S dealerships. July 2013 ©FDKG Ltd. Luxury Automotive Brands that have expanded rapidly Brand Bentley Maserati Rolls-Royce Porsche Brabus Dealer No. Jan 2013 23 Jun 2013 37 Increase 14 Jan 2013 15 Jun 2013 27 Increase 12 Jan 2013 7 Jun 2013 16 Increase 9 Jan 2013 45 Jun 2013 52 Increase 7 >Rolls-Royce Jan 2013 14 Jun 2013 34 Increase 20 Entering China in 2001, Rolls-Royce had only opened 7 dealers by the end of 2012. However, in the first half of 2013, it had added 9 more and plans to open an additional 4 new stores in Kunming, Chongqing, Nanning and Taiyuan by the end of 2013. According to Inautonews, RollsRoyce signed 8 dealers in 2012 and plans to have 20 dealerships by the end of 2013 aiming to compete with Bentley. >Bentley The sales volume of Bentley increased 23% in 2012, which makes China their second largest market. The brand currently plans to have 45 dealerships in China by the end of 2015. >Lamborghini The only car brand we monitor that reduced its dealer coverage by closing one of its two dealerships in Wenzhou. >Maserati To retain brand value, the Fiat Group has said that it will not increase the production capacity of Ferrari rapidly, but they do have big plans for Maserati which includes a worldwide sales volume increase from 6,307 in 2012 to 50,000 (10,000 sales in China) in 2015. In order to attain this goal and to chase Porsche (currently with 52 dealerships), Maserati aims to open more dealerships quickly. >Aston Martin Intent on opening up the Central and Southwest markets to catch up with their competitors, Aston Martin has opened dealerships in Zhengzhou, Wuhan and Kunming. LUXURY INSIGHTS CHINA TM 5 July 2013 ©FDKG Ltd. Luxury Watches Luxury watch point of sale density ranking by city Ranking City Total store No. Overall increase/ decrease 1 — Beijing 170 -3% 2 — Shanghai 137 -1% 3 ↑1 Shenyang 65 8% 4 ↓1 Dalian 64 5% 5 — Harbin 46 0% 6 ↑1 Hangzhou 38 6% 7 — Chengdu 37 3% 8 ↓2 Taiyuan 36 -3% 9 — Kunming 32 -3% 10 ↓1 Shenzhen 29 -12% 11 ↑3 Tianjin 28 33% 12 ↓1 Guangzhou 27 0% 13 ↓1 Zhengzhou 23 -8% 14 — Suzhou 21 0% 14 — Chongqing 21 0% 16 ↓3 Xi'an 20 -9% 17 — Changchun 17 -6% 17 ↑1 Anshan 17 0% 19 ↓1 Nanjing 15 -12% 19 ↑2 Ningbo 15 15% 21 ↓1 Jinan 14 0% 21 — Xiamen 14 8% Opened in Tianjin: 1 Audemars Piguet, 3 Baume & Mercier, 1 Panerai, 2 Blancpain Example city: Beijing 8 new presences, from: Chopard, A.Lange & Sohne, Vacheron Constantin, Jaeger-Lecoultre, Baume & Mercier, Blancpain, Roger Dubuis, Parmigiani 12 presences closed including 5 for Rolex and the only retail presence of F.P.Journe in China. LUXURY INSIGHTS CHINA TM The story for the watch sector during the past 12 months has not been a happy one. As the principal choice given by Chinese as a gift to others, the watch sector has been hit by a new government intent on fighting corruption and abuse of power. Regulations introduced in the second half of 2012 limiting spending on gifts and receipt of them has made a major impact on the performance of the sector, and from our data, the retail coverage over the past six months. Only two brands have aggressively expanded over the past six months, Jaeger-Lecoultre and Baume & Mercier. Cities such as Beijing and Shanghai, amongst others saw more closures than openings, and Shenzhen saw a 12% decrease in retail density, probably due to its proximity to Hong Kong. Tianjin was the city of the period, with watch retailing increasing by 33% over the six months, which is surprising considering its proximity to Beijing which has the largest number of watch stores in the country. Over the past two years many watch brands acknowledged the growing potential to sell to woman, and have expanded their female lines. With the decrease in sales to men, woman have become more important to all watch brands. New store openings Store No. 9 6 3 0 Tianjin Shengyang 6 Dalian Hangzhou Ningbo Nanchang July 2013 ©FDKG Ltd. Luxury Watches Brands that have reduced their total retail density numbers Brand Store/ counter closed Current retail points Audemars Piguet 5 16 Xi'an; Shenzhen; 3 in Shanghai; (Sheyang; Tianjin) F.P.Journe 1 0 Beijing Glashütte Original 7 27 Kunming; Shenzhen; Nanjin; 2 in Harbin; 2 in Beijing Jaquet Droz 4 12 2 in Beijing; Taiyuan; Shanghai Laurent Ferrier 2 0 Zhenzhou; Shanghai Leon Hatot 2 1 2 in Beijing Omega 8 227 Taiyuan; Changchun; 3 in Shanghai; Wuhan; Guangzhou; Chengdu; (Nanchang; Taizhou) Rolex 12 144 Kunming; Zhongshan; Shenzhen; Huzhou; Hangzhou; Wuxi; Nanjing; 5 in Beijing; (Yancheng; Baotou; Taiyuan; Shenyang) Cities where stores have been closed or (opened) The introduction of regulations targeting gifting, appear to have affected those brands in particular that have a relatively small presence in China. These brands are also those with lower brand awareness, and are likely to be purchased by a select few and not the majority, and any reduction in their footfall will significantly impact their sustainability. For popular brands such as Omega and Rolex, sales will have been affected by gifting regulations, and due to a slowing economy as the conservative middle classes have cut back on their spending. In addition to closing stores, both these brands have expanded into T3 and T4 cities. The only two brands that have expanded rapidly Brand Jaeger-Lecoultre Baume & Mercier LUXURY INSIGHTS CHINA Store No. Jan 2013 48 Jun 2013 56 Increase 8 Jan 2013 57 Jun 2013 67 Increase 10 TM 7 July 2013 ©FDKG Ltd. Luxury Jewellery Luxury jewellery dealership density ranking by city Ranking City Total store No. Overall increase/ decrease 1 — Shanghai 45 7% 2 — Beijing 43 5% 3 — Shenyang 16 0% 4 — Tianjin 12 9% 5 — Dalian 11 10% 6 — Hanghzou 10 11% 6 ↑1 Nanjing 10 43% 8 ↓1 Taiyuan 7 0% 8 ↓1 Guangzhou 7 0% 8 ↓1 Chengdu 7 0% 11 — Shenzhen 5 -17% 11 — Chongqing 5 -17% 11 ↑2 Harbin 5 0% 11 ↑3 Kunming 5 25% 15 ↓1 Suzhou 4 0% 15 ↓1 Wuxi 4 0% 15 ↓1 Wenzhou 4 0% 15 ↑3 Xi'an 4 33% 19 ↓1 Ningbo 3 0% 19 ↓1 Qingdao 3 0% 19 ↓1 Wuhan 3 0% 19 ↓1 Changsha 3 0% LUXURY INSIGHTS CHINA TM 8 Unlike watches, jewellery has not been directly affected by gifting regulations, and where it is given as a gift it is usually between friends or private business associates. The general appreciation of jewellery has increased over the past few years, and in particular high jewellery that can be collected or considered an investment. With a slowing economy, this type of investment has grown in popularity with the high net worth consumer and hence we have seen a steady expansion by most of the top ranked brands. Contrary to the watch sector, we have seen some significant expansion in cities where watch representation is decreasing. Kunming for example is 3% down in watch retailing but 25% up in jewellery. Likewise, Xi'an in Shaanxi province is up 33% in jewellery retailing but down 9% for watches. Clearly each city and its citizens become more knowledgeable and adopt new products at different rates. Watches developed much faster than jewellery, but there is also an indication that money is still available to be spent most likely by men on women in these cities. The spending may well be for status and perceived investment reasons, as the opportunity for woman in tier two and three cities to wear high jewellery is limited. July 2013 ©FDKG Ltd. Luxury Jewellery New store openings Store No. 3 2 1 CHangzhou Nanning Xi'an Kunming Hangzhou Dalian Tianjin Beijing Nanjing Shanghai 0 New in Shanghai: 1 Van Cleef & Arpels; 1 Harry Winston; 1 Piaget; 1 Damiani New to Nanjing: 1 Van Cleef & Arpels; 1 Chaumet;1 Piaget Opened in Beijing: 1 Van Cleef & Arpels; 1 Buccellati; 1 Pomellato; 1 Damiani The winners and the losers >Harry Winston Opened 3 stores during the first half of 2013, and now has a total of 5 stores in China >Leon Hatot The only brand to close stores in the jewellery sector, its store in Shanghai is now its only remaining presence after two stores in Beijing were shut. LUXURY INSIGHTS CHINA TM 9 July 2013 ©FDKG Ltd. Luxury Fashion Luxury fashion dealership density ranking by city Ranking City Total store No. Overall increase/ decrease 1 — Beijing 228 1% 2 — Shanghai 225 9% 3 — Shenyang 90 10% 4 — Chengdu 76 6% 5 — Hangzhou 65 -7% 6 ↑1 Tianjin 63 11% 7 ↓1 Guangzhou 54 -7% 8 — Harbin 52 0% 9 — Shenzhen 47 -4% 10 ↑1 Suzhou 39 3% 10 ↑2 Wuhan 39 11% 12 ↓2 Nanjing 38 -3% 13 ↓1 Kunming 37 6% 13 ↑2 Xi'an 37 12% 15 ↓1 Dalian 34 0% 16 — Chongqing 33 3% 17 — Qingdao 26 13% 18 ↑7 Changsha 25 25% 19 ↓2 Taiyuan 24 4% 19 ↑4 Hefei 24 14% 19 ↑4 Zhengzhou 24 14% The luxury fashion sector is a mixed group of high luxury, and affordable luxury brands into which we include designer brands. The latter group is still in the process of establishing its value to the Chinese consumer who don’t quite know how to regard them; they are neither traditional nor everyday, so many of these brands struggle to establish their name. Cities close to other major fashion hubs such as Guangzhou, Shenzhen and Hangzhou have seen a decrease in retail coverage, due to economic pressure on many brands overall, and reduced footfall in stores. By contrast a number of tier two and three cities have seen their retail density increase by double figures possibly due to new rental agreements signed, at what may have been very attractive rates for some of the bigger brands. The next 12 months will determine whether these new stores will ever be profitable, even for the top names in the sector. Shanghai still remains the most popular place for fashion brands to expand and/or establish a presence, and T3 city Changsha having the greatest increase in stores when compared to its status six months ago. New store openings Store No. 20 16 12 8 4 LUXURY INSIGHTS CHINA TM 10 Urumchi Kunming Sanya Xiamen Taizhou Beijing Zhengzhou Qingdao Hefei Xi'an Chengdu Wuhan Changsha Tianjin Nanning Shenyang Shanghai 0 July 2013 ©FDKG Ltd. Luxury Fashion The winners and losers >Hangzhou Shanghai is still the first choice for fashion brands, 18 new stores opened in the first half of 2013. Hangzhou has seen five store closures due to the huge choices in the sector already available in the city, and due to its proximity to Shanghai where its citizens can drive or take a train to in under an hour. >Nanning >Guangzhou >Shanghai Nanning is a new focus for fashion brands, at the end of 2012, it had only 12 stores belonging to the brands we monitor, but in the past six months this number has increased to 20. Guangzhou has and will continue to be challenged by its neighbour Hong Kong, that offers greater choice and lower prices a short drive or train ride away. Brands that have expanded rapidly in the past six months Brand LV Versace BottegaVeneta Escada Furla Dunhill Brunello Cucinelli LUXURY INSIGHTS CHINA The mix of brands that have shown the most rapid expansion in the past six months is wide. Despite LV ‘burn-out’ amongst many more experienced consumers, the brand is still working hard to expand its coverage and leverage its reputation. Versace first arrived in China in 2000, and has previously taken a slow and steady approach to expansion. In the last six months, this approach has been accelerated, as has that of BV, who have taken advantage of a successful 2012. Store No. Jan 2013 40 Jun 2013 46 Increase 6 Jan 2013 21 Jun 2013 35 Increase 14 Jan 2013 24 Jun 2013 31 Increase 7 Jan 2013 20 Jun 2013 27 Increase 7 Jan 2013 15 Jun 2013 23 Increase 8 Jan 2013 113 Jun 2013 119 Increase 6 Jan 2013 6 Jun 2013 12 Increase 6 TM Dunhill has continued to expand despite the slowing market, and affordable luxury bag brand Furla continues to invest in an attempt to catch up with its peers in the sector. And Iconic men’s fashion brand Bruno Cucinelli is taking advantage if his Italian roots and growing international status with wealthy consumers who know something about fashion. 11 July 2013 ©FDKG Ltd. Luxury Fashion Brand Store closed Remaining store number Alexander McQueen 1 1 Beijing Badgley Mischka 1 12 Shanghai Balmain 2 2 Shanghai; Beijing Berluti 1 6 Ningbo Chanel 1 9 Shenyang Donna Karan 1 1 Shenyang Emporio Armanni 1 22 Chengdu Fendi 3 18 Beijing; Suzhou; Xi'an; (Shanghai; Tianjing) Fratelli Rossetti 1 3 Shenzhen Hogan 1 3 Shenyang John Lobb 1 2 Hangzhou Marc by marc jacobs 7 17 Beijing; Dalian; Nanjing; Hangzhou; Guangzhou; Changsha; Xi'an; (Shanghai) Marc jacobs 1 2 Shanghai Thomas Pink 4 7 2 in Shanghai; 2 in Beijing Tod's 1 26 Wuhan; Fuzhou Vivienne Westwood 3 5 Shenyang; Nanjing; Hangzhou Cities where stores have been closed or (opened) The table on the above demonstrates the challenge for designer and affordable luxury brands in China. Amongst the group are five brands owned by LVMH, a handful of privately owned brands, one from the Kering stable, and two from Tod’s. There are two themes here, designer labels and luxury shoes. In a country the size of China, the choices in fashion are large, and reasonably good quality everyday clothing is abundant. There are many local brands serving the middle and upper middle fashion markets, and a few international players. Designer product is priced considerably higher here than in the west, and the quality of design, materials and workmanship are not communicated effectively, hence people who will buy Marc by Marc Jacobs or Vivienne Westwood are limited in number, even in a tier one city where a young woman would rather buy a luxury handbag than spend the equivalent money on a dress. LUXURY INSIGHTS CHINA TM The male shoe market in particular was slowly developing as men regard expensive shoes, much like a watch as an emblem of status and success. With the slowing economy, and greater consumer knowledge money is being spent more wisely, and perhaps unlike woman who might buy shoes spontaneously, men take a more pragmatic view to such a purchase. Owning a small number of good quality pairs of shoes is enough for a Chinese man. 12 July 2013 ©FDKG Ltd. The Brand Reach Review Summary 'Over the past six months, we can see that the general expansion into tier two and three cities has continued, but at a slower pace than in previous years. Although not dramatic, the slowed expansion demonstrates a general decline in the luxury sector particularly related to watches and to some extent fashion and accessories. The luxury auto sector continues to spread into tier two and some tier three cities, and jewellery expansion which has been limited in the past has steadily moved into locations where it might be expected to be unlikely, yet where this type of product will be seen as an investment of reasonable stability. Rationalisation by many brands has hit the cities of Guangzhou and Shenzhen due to their proximity to Hong Kong, and where many local consumers will travel for greater choice and lower prices. Hangzhou known for its wealth has also dropped on the relative ranking, because of its proximity to Shanghai and the mobility of its citizens. Nanjing the provincial capital of Jiangsu has by contrast become a hot spot in the past six months, ranking highly for the auto and jewellery sectors. The 2013 strategies of many brands will begin to unfold during the second half of the year, and we will start to see how effective the outreach into smaller cities will become, and whether few stores and more focused retail in some of the more traditional locations is effective. This caution in many cases will represent a challenge for the shopping mall developers and operators, as their projected occupancy targets prove difficult to attain, and rental revenues decline. The Luxury Insights China team will continue to monitor the reach of luxury brands in China and reporting trends and views within the coming issues. Our next Brand Reach Review will be issued in January 2014. If you have any questions about the content of this review, please contact [email protected] LUXURY INSIGHTS CHINA TM 13 July 2013 ©FDKG Ltd. Appendix The brands included in this review Luxury cars Luxury Watches AC Schnitzer Aston Martin Bentley Brabus Bugatti Ferrari Koenigsegg Lamborghini Lotus Maserati Maybach Morgan Pagani Porsche Rolls-Royce Spyker Wiesmann A. Lange & Söhne Audemars Piguet Baume & Mercier Bedat & Co Bell & Ross Blancpain Boucheron Breguet Breitling Bvlgari Cartier Chopard Chronoswiss Corum Ebel F.P.Journe Franck Muller Girard-Perregaux Glashütte Original Greubel Forsey H. Moser & Cie. Hublot Jaeger-Lecoultre Jaquet Droz Laurent Ferrier Léon Hatot MB&F Omega Panerai Parmigiani Patek Philippe Piaget Richard Mille Roger Dubuis Rolex Ulysse Nardin Vacheron Constantin Zenith Boucheron Buccellati Bvlgari Cartier Chaumet Chopard Damiani De Beers dinh van Graff Harry Winston Jacob & Co. Lalique Léon Hatot Mikimoto Piaget Pomellato Qeelin Tiffany & Co. Van Cleef & Arpels Agnona Alexander McQqueen Armani Collezioni Badgley Mischka Balenciaga Bally Balmain Berluti Bottega Veneta Brioni Brunello Cucinelli Burberry Canali Celine Chanel Chloé Christian Dior Coach Daks Diane von Fürstenberg Dolce & Gabbana Donna Karan Dunhill Emilio Pucci Emporio Armani Ermenegildo Zegna Escada Fendi Fratelli Rossetti Furla Gieves & Hawkes Giorgio Armani Giuseppe Zanotti Goyard Gucci Hermès Hogan Hugo Boss J.M.Weston Jean Paul Gaultier Jimmy Choo John Lobb Kenzo Lana Marks Lancel Lanvin Loewe Louis Vuitton Marc by Marc Jacobs Marc Jacobs Collection MCM Miu Miu Mulberry Paul & Shark Prada René Caovilla Roger Vivier S.T. Dupont Salvatore Ferragamo Santoni Sergio Rossi SHANG XIA Luxury Jewellery Luxury Fashion LUXURY INSIGHTS CHINA TM 14 July 2013 ©FDKG Ltd. End note July 2013 www.luxuryinsightschina.com Luxury Insights China is a unique report assessing the Chinese luxury sector that is issued 10 times a year. The content is gathered, written and issues commented on by the researchers, analyst and operational luxury experts from FDKG based in the country. The regular reports provide senior staff of luxury brands a concise summary of activities and influences across the whole sector. It contains no advertising, just pure facts, valuable opinion and market insight. Our sector specialist market researchers are constantly monitoring the entire luxury sector in China and specifically their sub-sectors, they are supported by independent advisors who operate within those sub-sectors to provide opinion and advice to the editorial team of the Luxury Insights China report. Because of our close connections with staff working for brands in China, and a network of luxury consumers, we are able to verify market data and assess trends on a practical level, all of which contributes to the value and authenticity of our content. The Luxury Insights China team can be contacted at [email protected] If you would like to know more about FDKG and its services, please visit our website at www.fdkginsight.com FDKG London FDKG Shanghai 14 Hanover Street, Hanover Square, London W1S 1YH +44 (0) 203 086 8076 [email protected] 12F Platinum building, 233 Tai Cang Road, Xintiandi, Shanghai 200020 +86 (0) 21 5178 5082 [email protected] No.130701-07