Richemont Group CEO Says Chinese Shoppers Looking For Brands “That Are Not Necessarily On The Top Of The Radar Screen”
Chloe released a low-key China anniversary edition handbag last fall
Are wealthy Chinese shoppers starting to forego Louis Vuitton and Gucci for lesser-known, less ostentatious brands? That was the contention of Richemont Group CEO Geoffroy de la Bourdonnaye last week in Shanghai, where Richemont-owned Chloe held its Fifth Anniversary runway show, the company’s largest China event to date. Speaking to the AFP, de la Bourdonnaye said that while “China has been very fast at picking up the most well-known brands,” China’s more sophisticated consumers are “now looking for the brands that are not necessarily on the top of the radar screen. They’re looking for new interesting brands that bring something that other brands don’t bring.” Looking to bring low-key luxury to more of the country’s emerging second-tier cities, Chloe will open four new boutiques in China over the course of this year, adding to the 10 it currently operates, with stores planned for cities like Nanjing and Xi’an.
But is “no logo” luxury really set to take off in status-obsessed China?
If you listen to execs from some of the world’s top luxury brands, whether China is ready is almost of secondary importance, as the transition towards less visible logos is already well on its way. As Francois-Henri Pinault, chairman and chief executive of Gucci’s French parent company PPR, said last summer: “Our groups are moving toward fewer logos, more discreet luxury. It’s a question of adapting our ranges very rapidly to this new perception of luxury, a luxury which is more subtle, more sophisticated.” However, as Jing Daily pointed out for the Forbes China Tracker last August, less logo-forward collections at Louis Vuitton in Shanghai were met with a comparatively cool reaction from shoppers:
Geoffroy de la Bourdonnaye: “We have to be selective. We don’t want to over-expose ourselves” (Image: AFP)
Despite the power that the “periphery effect” still has in dictating luxury trends in China’s handbag market — for men as well as women — it seems that more of the country’s more sophisticated types are downplaying their purchases rather than going fully logo-free. From the AFP:
Whether we start to see more high-end devotees flipping their purchases around and relying on the brand savvy of others to satisfy their urge to be seen and envied is anyone’s guess. What is certain is that a trend toward low-key and logo-less luxury at boutiques in Europe or even Hong Kong will translate to more of these products seen on the streets of Beijing, Shanghai and Shenzhen, since wealthy shoppers in these cities are the most likely to take excursions to these destinations with shopping in mind. However, the same can’t necessarily be said for China’s inland cities, where brands like Chloe are currently planning greater expansion. Typically less educated and still in the throes of a love affair with label-amplifying brands, it could take years for consumers in cities like Wuhan, Dalian and Xi’an to choose Chloe over Chanel.