All that glitters is not sold
星期一, 07月 28th, 2008Profits are hard to come by in China’s luxury market – but that’s hardly a deterrent to companies selling everything from watches to wine. The fancy brands that are flooding the market are honing a long-term strategy
It’s late Saturday morning at Beijing’s newest exclusive shopping mall, Shin Kong Place. Near the China World Trade Center in what is known as the “Central Business District,” the mall has seven floors of stores seductively displaying designer clothes and jewelry while classical music discreetly plays in the background. The place oozes class and sophistication, and its stores are no different: famous brands such as Chanel, Chloé and Rolex are already open for business. There’s only one problem – where are all the customers?
Bottega Veneta’s first store in Beijing is in Shin Kong Place, and the exclusive Italian leather goods company present their elegant handbags, luggage and leather wallets, all spot-lit in display cabinets. The designer-clad staff are keen to help anyone who wanders in, but so far, few have. When a shop assistant is asked how many people she has served since the store opened a few weeks ago, she whispers, “Very few. We spend most of the day tidying and re-positioning the stock.”
Of course, it is a new store, and the more discreet goods that don’t sport famous logos may not yet appeal to the taste of many of China’s luxury shoppers, who are more inclined towards flaunting what they’ve got. But even some world-renowned luxury brands that have invested heavily in China for a couple of decades are still not turning a tidy profit. The Chinese mainland luxury market is proving harder to crack than many overseas companies anticipated. Meanwhile, competition for the companies seeking a slice has never been so intense. In the first quarter of this year, four upmarket retail developments opened, as well as Shin Kong Place in May. The mammoth multi-storied Four Seasons Shopping Center on Beijing’s Financial Street is set to open its doors next month.
But is there money to be made? Cartier’s managing director in China, Nigel Luk, says that the jewelry and watch seller is barely breaking even after 15 years in the Chinese mainland, even though it is the country’s top-selling luxury jewelry brand. (more…)