While facing 2020 last quarter, brands go for a race to China. As a matter of fact, China proves to be the only country showing a positive and rewarding shopping trend. Brands who were placed in the best positions have been enjoying the fruits of their labour.
Yet, now, they must deal with new upcoming competitors. Luxury or not, in the middle of the pandemic all businesses spotlight China. They all want to conquer China to save 2020 turnover and gain momentum to look ahead to the future.
A race to China
Kiton is one of the brands driving bargains in China. “Since the reopening of selling stores, our sales have been increasing by 50%”, commented Chief Executive Officer Antonio De Matteis while talking to MF Fashion. The same newspaper reported the news about an investment carried out by René Caovilla footwear company, which, despite physical retail crisis, has opened its first single-brand store in Beijing. They did it after growing online, especially on Tmall and their own e-commerce channel (which is now available in Chinese).
Likewise, another luxury footwear manufacturer, Baldinini, based in Romagna, has implemented an omnichannel strategy focusing on China as well. “Digital experience will foster the opening of single-brand selling stores in China and in the Far East”, pointed out managing director Christian Prazzoli while speaking to Il Sole 24 Ore.
Likewise, Italian top brands focus on China as a primary target as well. “We could see that sales have been swiftly picking up over the first weeks following lockdown – remarked Alberto Camerlengo, Chief Executive Officer of Furla, while talking to Il Sole 24 Ore –. At present, our sales have already outdone 2019 levels as gross profit margin has increased. It means that our closer clientele has been buying our products again as soon as they had a chance to”. One more example is given by Prada.
Managing director Bertelli emphasized that sales have already gone beyond 2019 standards. They have been actively acting to further boost such positive business trend. For example, they decided to show the presentation of their Spring/Summer 2021 collection, the first one on the Prada-Simons era, in several movie theatres in Rong Zhai, Prada’s social and cultural hub located in the very centre of Shanghai. The brand testimonials promptly advertised the news on social networks: #pradass21 hashtag, on Weibo, reached over 170 million followers on one single day. Likewise, a live streaming information and debate session, arranged by the brand, successfully drew millions of Chinese netizens.