Luxury, Retail, FMCG and Media News & Trends: Oct Week 3

1. Business Expansions

i. E-Commerce Giant Temu Enters Vietnam and Philippines

Temu, a global discount-shopping platform under PDD Holdings, is expanding into Vietnam and Brunei. Compared to its Brunei site, the Vietnam launch is still relatively basic, with limited payment and logistics options.

Takeaway: Temu’s rapid expansion in Southeast Asia shows its aggressive growth strategy. It also highlights the potential of Southeast Asian markets. In this case, Vietnam’s e-commerce market is the fastest-growing in Southeast Asia, while Brunei boasts a high standard of living.

ii. Phoebe Philo to Expand into APAC via Wholesale and E-Commerce

Phoebe Philo is expanding her luxury label into the Asia Pacific (APAC) region. The brand will launch through both its own online store and select retail partners in key cities like Tokyo, Sydney, and Seoul. Wholesale partnerships will start at the end of this month, while the online store will begin shipping to Australia, Hong Kong, Japan, Singapore, and South Korea in November. The initial collection for APAC shoppers includes pieces from the first collection, with more offerings coming next year.

Takeaway: Phoebe Philo’s brand expansion highlights the potential of the APAC market, which makes it a critical focus for brands.

iii. Chinese Luxury Goelia Launches Singapore and China Stores

Chinese luxury brand Goelia opened nine new stores this month, with six in China and three in Singapore. The Singapore openings include flagship locations at Jewel Changi Airport and Orchard Road and reflect the brand’s emphasis on nature and sustainability.

Takeaway: Goelia views Singapore as a strategic hub for international trade and a key market for its global expansion. Despite a slowdown in luxury retail, Goelia is bucking the trend, growing its international footprint and preparing for further expansion into Spain.

2. Partnerships

i. Prada and Axiom Space Jointly Launch Spacesuit for NASA

Prada and Axiom Space have teamed up to create a new spacesuit for NASA’s Artemis 3 moon mission in 2026. The suit, called the Axiom Extravehicular Mobility Unit (AxEMU), blends functionality and aesthetics to withstand extreme lunar conditions. It allows astronauts to conduct spacewalks for at least eight hours and has undergone extensive testing.

Takeaway: This partnership highlights growing interest from luxury brands as the space exploration and tourism industries develop. Companies like Pierre Cardin and Hilton have also entered the space industry and are exploring opening new avenues for innovation and brand expansion.

ii. Foot Locker Inks Multi-Year Partnership with the Chicago Bulls

Foot Locker established a multi-year partnership with the Chicago Bulls ahead of the 2024-2025 NBA season. Key initiatives include sponsoring Bulls Fest, hosting a special celebration at Foot Locker’s State Street store with player meet-and-greets, and launching a co-branded “Tunnel Walk” series on social media. The partnership will officially kick off during the Bulls vs. Orlando game on October 30, featuring various fan engagement activities.

Takeaway: This collaboration seeks to enhance Foot Locker’s presence in basketball through community events, fan experiences, in-store activations and exclusive content. It is the latest in Foot Locker’s series of collaborations related to basketball culture. Foot Locker currently has a partnership with the NBA and has also launched other basketball-related initiatives with Nike and Jordan Brand.

iii. Zara in Yet Another Collaboration, This Time with Kate Moss

Zara is set to launch a new capsule collection in collaboration with British model Kate Moss on November 30 to target the festive season. The collection will include chic, casual outfits that blend classic lines with glamour, designed with the help of Katy England.

Takeaway: This partnership follows a series of successful collaborations Moss has had with various brands, including Zara previously. Zara continues to expand its collaborative strategy, having recently released a collection with Italian designer Stefano Pilati and entered a joint venture with British designer Samuel Ross for his new project. These partnerships reflect the brand’s ambition to move beyond fast fashion and appeal to a more sophisticated market segment.

3. Deals & Investments

i. Zara Owner Sets Up €50m Fund for Textile Innovation

Inditex, the parent company of Zara, has launched a €50 million ($54.5 million) fund to invest in textile innovation. This initiative aims to support projects that develop sustainable materials with a lower environmental impact. Mundi Ventures manages the fund. Inditex has set ambitious goals to halve its emissions by 2030 and reach net zero by 2040.

Its strategy includes sourcing 40% of textile fibres from recycling processes, 25% from crops grown using regenerative or organic farming, and 10% from other preferred sources. Inditex is also actively partnering with innovative textile companies. This includes agreements to purchase recycled materials from firms like Renewcell and Ambercycle, as well as supporting startups like Galy, which focuses on lab-grown cotton that conserves resources.

Takeaway: The move comes as greenhouse gas emissions and environmental concerns associated with fast fashion are increasingly scrutinised.

ii. Chinese Beauty Conglomerate S’Young Group Buys RéVive Skincare

Chinese beauty giant S’Young Group acquired US skincare brand RéVive Skincare, expanding its international portfolio. The terms of the deal were not disclosed. RéVive, founded in 1997 by Dr Gregory Brown, was sold by Tengram Capital Partners, who had acquired it from Shiseido in 2017. The current management team will remain in place, ensuring independent operations for the brand.

Takeaway: RéVive has shown strong sales growth, increasing from US$15 million in 2017 to US$30 million in 2022. This acquisition follows S’Young’s previous purchase of French luxury skincare brand EviDenS de Beauté, which also retained independent operations post-acquisition.

4. Marketing and Advertising

i. Kimi Shows Potential to Redefine Search

Kimi launched a new AI-powered search tool that is believed to have the potential to redefine traditional search methods. Some of the key highlights include:

• Adapting search terms’ language (automatically switching terms from Chinese to English) when needed for better results.
• It allows users to pose complex questions and provides comprehensive, accurate answers by analysing multiple sources efficiently.

For instance, the following question was posed to Kimi:

Q: Determine the average wait times for each attraction at Shanghai Disneyland during various times in September, create a table listing these wait times. Then, develop an itinerary that minimises waiting time based on this data.

A: This task is complex due to the need to account for multiple interrelated factors. Kimi’s approach involves actively exploring and analysing 46 web pages and categorising them into several key areas:

• A list of Shanghai Disneyland attractions for September.
• The average wait times for these attractions throughout the day.
• The formulation of an optimised tour route to minimise wait times.

By examining the relevant web pages individually, it also allows users to see its detailed reasoning thought process.

Takeaway: Kimi’s approach is structured: it breaks down complex queries into manageable parts, conducts thorough searches, and presents clear answers. In contrast, competing models like OpenAI struggle with accuracy and depth. According to reports, Kimi’s internal assessment shows that the Kimi Exploration Edition achieves an accuracy rate that is at least 30% higher than that of all other major AI products, both domestically and internationally, when responding to complex and lengthy questions from real users.

This new model not only raises the bar for AI search capabilities but also makes it more user-friendly. As a result, Kimi is quickly gaining traction, with monthly visits on its PC platform growing from 1.4 million to 24 million.

Kimi’s exploration tool gives a glimpse of a possible future where search engines will evolve into tools that AI can navigate more effectively. Users can simply concentrate on asking insightful questions, and AI will leverage its capabilities to independently explore the vast internet, continuously learn, and deliver more accurate answers.

ii. Google Shopping Enhanced with AI Upgrades

Google launched significant upgrades to its shopping platform ahead of the holiday season, enhancing the shopping experience with AI-driven features.

Takeaway: Key improvements include:

• AI-Generated Briefs: When users search for specific items, like “men’s winter jacket for Seattle,” they receive AI-generated briefs highlighting important considerations and relevant products.
• Enhanced Filters: New filtering options streamline the search process for users.
• Augmented Reality (AR) Features: AR Try-On experiences are integrated into product searches, offering users a better sense of how items will look.
• Personalised Product Feeds: The Google Shopping homepage now showcases products based on users’ search history and preferences.
• Price Comparison Tools: New tools for price tracking and a dedicated “Deals” page help users find the best offers.

iii. LinkedIn Improves Video Ad Offerings and Automated Campaigns

LinkedIn is enhancing its advertising features to boost video engagement and simplify campaign creation for marketers.

Takeaway: Key updates include:

• Live Event Ads:
  • Introduction of “Thought Leader Ads” to highlight company events.
  • 30-second preview videos for live broadcasts.
  • Improved targeting options for event promotions.
• Expansion of Wire Programme:
  • In-stream video ads are now available to brands in the EU.
• Automated Campaign Enhancements:
  • New options for video and document ads.
  • Additional campaign objectives, including brand awareness and video views.

Takeaway: These new advertising features streamline campaign creation and optimisation, while the enhanced targeting options capitalise on the rising trend of video usage on the platform. This could result in better ad performance, increased audience engagement, and more cost-effective outcomes for B2B marketing. Reading in between the lines, LinkedIn is, in essence, heavily investing in video content to boost both engagement and advertising revenue. New formats and objectives for Accelerate campaigns are likely to be introduced in the coming months.

5. People Moves

Armani: At 90 years old, Giorgio Armani has announced plans to retire in the next two to three years. He has not disclosed specific succession plans for his fashion brand, which he founded in 1975. Armani expressed a desire to step back from decision-making but remains cautious about outside investor interest. Without children to inherit the brand, there are concerns about its future independence in the industry dominated by luxury conglomerates. Armani has indicated that he has established a structure for succession but hasn’t provided details. His potential heirs include his family members and a long-term collaborator.

Dior Men: Kim Jones is officially leaving his role as artistic director of womenswear and couture at Fendi after four years but will continue as the designer for Dior Men. LVMH announced the change, stating that a new creative organisation for Fendi will be revealed soon.

Alberta Feretti: Lorenzo Serafini was appointed as the new creative director of the Alberta Ferretti brand, succeeding founder Alberta Ferretti, who has retired. Serafini was previously the creative director for Philosophy di Lorenzo Serafini. Aeffe Group has developed a new strategy that includes merging the Philosophy line with the Alberta Ferretti brand starting fall/winter 2025 to enhance its market appeal. Serafini will debut his designs on the runway in February 2025. The Kids’ line will continue to be produced by Monnalisa, with the current design consultancy contract ending on December 31, 2024.

Nike: Nike appointed Angela Dong as the new Chair and CEO for its Greater China operations as of October 12. Dong, who joined Nike China in 2005, has previously served as the global VP and GM for the Greater China region. Her dual role as the global CEO of Nike’s new ACG (All Conditions Gear) brand highlights the company’s focus on the Chinese market. The outdoor sports segment in China is expanding rapidly, and Nike’s strategic move to establish ACG aligns with this trend. Analysts believe this approach indicates Nike’s intention to leverage local expertise in a highly competitive market, particularly against strong domestic brands like Anta.

Discover More Industry Trends with JC

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Image Credits:

• Zara
• Reuters
• Imedia
• 茶饮消息