Luxury, Retail, FMCG and Media News & Trends: Oct Week 1

Luxury, Retail, FMCG and Media News & Trends: Oct Week 1

Luxury, Retail, FMCG and Media News & Trends: Oct Week 1

 

1. E-Commerce

i. Taobao Offers Free Shipping to Hong Kong

As part of its offshore expansion strategy, Taobao will offer free shipping to Hong Kong customers on orders over CNY99 (USD14.10).

Takeaway: This move comes as the e-commerce platform reaches saturation in mainland China. By investing CNY1 billion (USD142.6 million), Taobao aims to increase its presence in Hong Kong’s growing but still relatively underdeveloped online retail market, competing with platforms like HKTVmall, Pinduoduo, and Amazon. The competition in Hong Kong’s e-commerce and delivery services is intensifying, with Meituan now leading the food delivery sector.

Read the full article about Taobao’s free shipping to Hong Kong.

 

ii. JD Invests RMB1.5B in Hong Kong and Offers Free Shipping

JD.com is expanding its presence in Hong Kong by investing RMB 1.5 billion, with potential for further investment. The funds be spent on price and logistics subsidies, along with service enhancements. JD is launching a free delivery service for orders over RMB 299, available across a wide range of products including electronics, fashion, and home appliances, and customers can enjoy fast, next-day delivery through the JD app.

Takeaway: JD.com hasbeen actively expanding its logistics presence in the Hong Kong market in recent years. In October of last year, JD Logistics upgraded its express delivery services in Hong Kong and Macau, offering features like four-hour delivery, door-to-door service, and night-time delivery. The move comes as rival Alibaba is also expanding Taobao’s free shipping coverage to include Hong Kong. To make it more convenient for customers to pick up their orders, the number of Taobao’s official pick-up points and lockers in Hong Kong will also be increased to 800.

Logistics is a standard feature of e-commerce, but the shortage of last-mile delivery personnel, along with high labour and land costs, has long hindered the development of Hong Kong’s logistics market. These challenges make it difficult to keep up with the rapid growth of e-commerce. JD.com and Alibaba’s extensive investments in logistics show their intent to deepen their presence in the Hong Kong market.

The slowdown in internet growth has become an undeniable fact. Therefore, expanding and deepening the Hong Kong business has become a top choice for most companies with a clear overseas business strategy, which can serve as a gateway for further global expansion.

 

2. Luxury and Retail Business Moves

i. Eurolita Buys Moschino from Aeffe

Euroitalia acquired the beauty rights to the Moschino brand from Aeffe for approximately $109 million. Euroitalia, which has been a long-time licensee of Aeffe’s Moschino brand, will take over production and distribution, expected to enhance the brand’s growth.

Takeaway: This move allows Aeffe to reduce its financial debt amid declining sales and profitability, with a 14.9% drop in sales in the first half of 2024.

Read the full article about the sale of Mochino to Eurolita.

 

ii. Hermès Eyes Entry into Haute Couture

Hermès is contemplating entering the haute couture market, a move that could enhance its exclusivity amid a luxury market slowdown. Executive Chairman Axel Dumas emphasised that Hermès will not dilute its brand by following competitors into eyewear or hospitality, and will, instead, focus on high craftsmanship. Despite a challenging luxury landscape, Hermès has thrived due to its affluent client base and controlled production, with the brand achieving a 15% sales growth in the first half of the year.

Takeaway: Analysts predict Hermès may soon become luxury’s biggest franchise.

Read the full article about Hermès’ interest in haute couture.

 

iii. LVMH Sells Streetwear Brand Off-White

LVMH has sold the streetwear brand Off-White, founded by the late designer Virgil Abloh, to Bluestar Alliance, a brand management company based in New York. The decision comes nearly three years after Abloh’s passing, during which LVMH had aimed to leverage his creative vision for the brand.

Takeaway: The brand has faced challenges since Abloh’s death, including declining streetwear demand and mixed consumer reactions to a shift towards more upscale offerings. Off-White is also navigating complexities with existing licensing agreements with the New Guards Group, which will be renegotiated next year.

Read the full article about the sale of Off-White.

 

iv. Thai’s Central Group Buys Swiss Luxury Retail Chain Globus

Major Thai retail and property conglomerate Central Group acquired the operational business of Magazine zum Globus, a luxury department store chain in Switzerland, from the insolvent Signa group. This strategic acquisition, disclosed on September 30, 2024, will not affect the respective ownership of the buildings.

Takeaway: Prior to this, Central Group has already gained control of Selfridges in London and KaDeWe in Berlin. The acquisition, which enables the Group to manage all seven Globus stores, including the flagship location in Zurich, helps the Group to further strengthen its footprint in the European luxury retail market.

Read the full article about Central Group’s acquisition of Globus.

 

v. Dolce & Gabbana Launches its First Café in Shanghai

Dolce & Gabbana launched its first café in Shanghai. Situated on the second floor of the Citic Square flagship store, the 200-square-metre café focuses on Chinese and Italian cultural exchange achieved through cuisine.

Takeaway: The new café is a component of the Italian luxury brand’s strategy to expand in China. It follows the launch of a Casa Dolce & Gabbana in Shanghai in June, which focuses on the brand’s home décor collection.

Read the full article about Dolce & Gabbana’s Shanghai café.

 

3. People Moves

Dickies: VF Corp brought former Gap Inc. executive Chris Goble onboard to lead its Dickies brand as part of a broader leadership overhaul initiated by CEO Bracken Darrell. This is the ninth leadership change since Darrell joined in July 2023. Dickies is refocusing on its core workwear business after a failed attempt to shift towards fashion. Darrell has made changes in leadership, including replacing VF’s chief design officer and the head of the Vans brand. Todd Dalhausser, whom Goble will succeed, transitioned to a new role about a month ago and is now the general manager of North Face Americas.

Celine: Michael Rider was appointed as the new creative director of Celine, following Hedi Slimane’s departure. Having previously worked at Celine under Phoebe Philo, Rider brings a refined, minimalist style that resonates with Philo’s legacy. His extensive background in luxury fashion includes roles at Ralph Lauren and Balenciaga, where he developed a keen sense of blending intellectual design with commercial viability.

Nike: Frank Cooke is returning to Nike and the Jordan Brand after leaving in 2018. Cooke has been a pivotal figure in the sneaker industry, known for his innovative approach to sneaker design and storytelling. He played a key role during his time at Jordan, especially in collaborative projects and limited releases, with his works such as Off White x Nike and Travis Scott’s signature sneakers being major hits for Nike. With Cooke’s return alongside newly appointed CEO Elliott Hill, Nike appears to be reinstating its signature boldness.

Read the full article about Dickies’ exec from Gap.

Read the full article about Rider’s return to Celine.

Read the full article about Cooke’s return to Nike.

Discover More Industry Trends with JC

For the latest industry trends or to explore new career opportunities, connect with our luxury & retail recruitment consultants for a chat. With executive search firms in Singapore and China, and operations in key business hubs like Hong Kong, you can count on our team for timely access to regional insights that can create synergy for your career and operations.

For employers: Beyond the luxury, retail and consumer goods industry, we also have dedicated desks for several sectors that enables us to meet your varied recruitment needs:

 

Image Credits:

  • SCMP
  • Keystone
  • Dickies VF corp