Western luxury giants are betting Chinese brands

PPR will offer high quality products incorporating the cultural codes of the Middle Kingdom. Richemont, Hermes and L'Oréal seeking to develop local brands. Should there be Chinese brands to take root in the Middle Kingdom? While the future of the luxury industry obviously going to China, several groups are trying to answer in the affirmative to this question. The latest example, PPR .

 The French group has announced the acquisition of Qeelin, a luxury jeweler founded by Chinese and French. Based in Hong Kong, Qeelin offers jewelry ranging from 2,000 to 30,000 euros, whose aesthetic is inspired by the Chinese culture (see below). With its small diamond pendants depicting dragons and pandas, Qeelin aims to capture the taste of some Chinese for that glitters. End of 2010, Hermes had already made a similar bet in a different product category. The French group created from scratch Shang Xia, a Chinese brand positioned on a less ostentatious luxury, but extremely refined - and expensive - also a part of Chinese tradition.

The product range is based on materials directly from local crafts (porcelain, jade, cashmere, bamboo ...) and includes products positioned on the ancient practices of the country of tea to play mahjong. With this strategy, Shang Xia seeks to replicate, in the Chinese universe, which made the success of Hermes. A subtle exercise Precursor, the Richemont Group has embarked on an adventure comparable since the late 1990s. The world number two has bought luxury Shanghai Tang, a brand of leather goods and ready-to-wear. Shanghai Tang, which has a fifty shops, is positioned around a Chinese aesthetics revisited by modernity.

Subtle, the exercise is still very difficult to succeed. " By playing multiple tables at once and offering a range of products and prices very elastic, Shanghai Tang barely have a consistent brand and really capture market share , "says an industry expert. In cosmetics, L'Oréal, he bought in 2004, the Chinese brand Yue Sai, which he revised ranges based on traditional Chinese medicine. In each of these cases, European groups with expertise in luxury in China are trying to impose a brand tailored. But, as noted Yannig Gourmelon, partner in the firm Roland Berger, " the question will inevitably arise is that the ability of the Chinese to create their own luxury brands and compete with the big Western names . " Surprisingly, the Chinese seem still skeptical on this point. According to a survey conducted by Beijing University on international trade, 68% of consumers of luxury goods in China are skeptical that appear, in this sector, trademarks totally Chinese.

Luxury shopping knows no crisis

Saint-Tropez to Monaco, Côte d'Azur offers a unique concentration of the most beautiful places on the planet. It is a world apart, but high potential customers

A few weeks ago in Monte-Carlo Rolex opened its first store dedicated to the brand on the French Riviera. Last spring, it is Moncler for its sixty years of existence, which is offered a prestigious address at 14 La Croisette, Cannes as to make the capital of chic jacket! Most major brands, Chanel, Hermes, Louis Vuitton, Dior, Prada, pushed the walls of their shops, become too small.

What is happening in our region is a reflection of the results displayed by the luxury industry in the world. The crisis, we do not know what it is. Was smiling, as well LVMH, the French group first in the world in its class, in the Swiss Richemont (Cartier, Mont Blanc, Van Cleef & Arpels, JaegerLeCoultre) or in the luxury division of PPR (Gucci, Bottega Veneta, Yves Saint Laurent). Even independent brands like Prada, show good results.

Cannes spearhead

However, all without exception are present between Saint-Tropez and Monaco. If only for the image. In fact, we know nothing of the real profitability of its shops, and we imagine that some of them would have difficulty in isolation to hold their own in the game "The Riviera is a unique place in the world" , says Robert Van de Kerkhove, specialist installation of luxury shops. "the world always comes a day here. Although these international firms are investing heavily in China, their bosses watch themselves on issues affecting their presence in the cities of the coast. '

For one who looks like a "planner", originally including the creation of the Miramar in Cannes in 2008, is obviously the Croisette that almost everything is at stake. "This is a front mythical sea, the equivalent of Rodeo Drive in Los Angeles. But here the advantage is that shopping can be very concentrated. To do the same thing in Paris between Avenue Montaigne, Rue Royale, the Faubourg Saint-Honoré, it takes four days. '

Road luxury

Cannes but also lives with its neighbors. From there to imagine that in a few years there will be a real road luxury shopping, there is not one. In recent seasons, the new addresses flourished in Saint-Tropez cross between the Garonne and Rue Francois Sibilli. Monaco pampers particular "Golden Circle", where you can spend a few meters of the finest fashion houses in the greatest jewelers. Nice and goes upmarket. Today we even see passersby to photograph the window of American jeweler Tiffany & Co, Avenue de Verdun. "I do not know if you have realized the potential of the region.There is talk of Ibiza, Marbella, Barcelona, ​​but has nothing to envy. '

In the future, everything will be implemented to ensure that the Côte d'Azur is a luxury shopping destination throughout the year. But for that, we create a favorable environment. Namely one upscale hotel more substantial, restore more diverse, "world cuisine". The ultimate goal is to bring new tourists all the gold card.

Brazil: French luxury wants a piece of cake

On the occasion of the two-day visit to Paris of the Brazilian President, he will discuss the barriers of countries that heavily penalize the French luxury brands.
 Brazilian President Dilma Rousseff is on a state visit to Paris two days on 11 and 12 December. On the agenda, perhaps a request from France to relax a little border barriers .

French luxury sector is waiting for it to deploy in force in Brazil, where the market does exist. Brazilians are increasingly fond of luxury. But they prefer to shop abroad. More than 60% of purchases of luxury goods are outside Brazil. In France, for example, Brazilian visitors coming in fourth position in terms of expenditure.

The luxury sector in Brazil generates two billion euros per year And because the barriers are so high in Brazil that the prices of luxury goods are 40-50% higher than in Europe. 
Add various taxes and varied constantly changing and you will understand that, like India, Brazil is far from being a paradise for the French luxury brands. However, they also would like to share. In Brazil, the luxury sector is € 2 billion, an increase of 20% per year for three years. French brands are best known for 20 years. Yet today, the Brazilian market represents only 2% of sales 75 luxury homes of the Comité Colbert, Baccarat Yves Saint Laurent, through Cartier and Vuitton.

Sales of luxury homes in Spain begins to revive

For home sales recover (beyond what happens in the end of 2012 for the disappearance of tax incentives) have much. But part of the real estate sector,  the luxury, and noticed less crisis (is it about the money) and before showing signs of recovery. At least according to the new analysis for Spain and Portugal of Knight Frank, the market confidence is improving and sales volume of luxury homes (residential market they call it prime ) are rising.



Its latest report has assessed the current conditions market in several international buying Spanish destinations: Barcelona, ​​Madrid, Marbella, Sotogrande and the Balearic Islands . The market super-prime Spanish (15 million euros onwards) focuses on Marbella, Sotogrande and the Balearics. One of its main conclusions is that buyers coming from new markets, such as Latin America , are helping to prop up demand in some markets for luxury homes. says Knight Frank that buyers prime focus on the lifestyle factor and the potential long-term investment . In that sense, and due to currency fluctuations, some foreign buyers have been able to benefit from significant discounts, and take advantage of price adjustments that began in 2008 and still.