After a tumultuous year, how luxury brands are showing up in China

To receive the Vogue Business newsletter, sign up here. Luxury fashion and beauty firms were out in full force at the sixth China International Import Expo (CIIE), which ran from 5 to 10 November, showcasing their latest innovations against a backdrop that has changed dramatically since this time last year. The annual expo was launched six years ago by Chinese President Xi Jinping to act as a “bridge” between businesses and consumers while opening up the market to global opportunities. It has since become a key place for conglomerates like LVMH, Kering, Richemont and L’Oréal to test local reactions to their products, services and technology. “At CIIE, we debut our best products and beauty tech, turning exhibits into products,” Fabrice Megarbane, president of L’Oréal North Asia and CEO of L’Oréal China, tells Vogue Business. Brands used last year’s event to show their ongoing commitment to the Chinese market despite a sharp downturn caused by the tightening of Covid-19 restrictions. A few months later, China reopened its borders to international travel, triggering an uplift in sales. Growth has slowed progressively since, but new economic stimuli in the third quarter is expected to encourage local consumption and investment in Tier 1 cities going into 2024, according to a report published last week by Bain & Company and Italian luxury association Altagamma. For international luxury brands, CIIE was an opportunity to effectively reconnect with the Chinese market after years of lockdowns and other restrictions. “Richemont places a lot of importance on the Chinese market. Many of the group’s well-known brands have improved their relationships with Chinese partners and consumers by taking part in the CIIE,” says Jenny Gu, CEO of Richemont China. Twelve LVMH-owned labels participated this year — Celine and Loewe for the first time. The group capitalised on CIIE to increase its local relevance in the eyes of the Chinese government and consumers, paying homage to local traditions and culture. An example was the Dior Lady Art #8 limited edition handbag, jointly designed by Dior and Chinese artist Xu Zhen. Similarly, Fendi showcased a handbag crafted by two artisans who are custodians of the Yi people’s cultural heritage, namely prominent in silver jewelry and embroidery. ‘East meets West’ was the theme of an event series hosted by Bulgari, which included a preview of its Serpenti Forever capsule collection of bags; an AI-powered art installation that captured users’ brain waves and heartbeats as they observed the artworks, and then translated the waves of thought into unique digital artworks. Richemont-owned Vacheron Constantin put on an art exhibition called Wandering Clouds Startle the Dragon to celebrate the Chinese lunar calendar’s Year of the Dragon. Cartier screened a short film titled China Love. This year commemorates the 60th anniversary of Kering’s inception as well as the 10th anniversary of its name change (from PPR). In order to showcase all of its brands, including Gucci, Saint Laurent and Bottega Veneta, the group constructed an exhibition hall that was modelled after its headquarters in Paris. Jinqing Cai, president of Kering Greater China, sees the CIIE as an important opportunity to “expand forward-looking cooperation opportunities and co-create with the Chinese market”. Burberry and Dolce & Gabbana focused on brand culture and used CIIE to introduce their style DNA to China. The former’s booth design was inspired by the British rose, which symbolises romance and elegance, and focuses on the debut collection by creative director Daniel Lee. Dolce & Gabbana continued to re-interpret “Made in Italy” with displays of watches, jewellery, home accessories and beauty products, including a special edition of its Devotion handbag. Competing on tech innovation At CIIE, beauty and fashion brands have moved away from simple product displays to showing off their technological prowess. L'Oréal Group, a “veteran” of CIIE that has participated each year, showcased products from 22 brands, including Australian skincare brand Aēsop, Kérastase Paris, Armani Beauty and Shu Uemura, as well as technical innovation such as a computerised makeup applicator designed for users with limited hand and arm mobility, and a tool that uses 3D printing tech to apply eyebrow makeup. The Estée Lauder Companies brought 16 brands, which between them introduced hundreds of new goods, including a red pomegranate line by Estée Lauder targeting Asian skin. The group also unveiled VISIA CR 5.0, which can capture skin colour and facial contours in one shot, and cutting-edge skin testers like the Moisture Map skin moisture distribution tester and the Hirox digital skin microscope. Some mainstream brands also utilised CIIE to unveil tech and initiatives aimed at capturing local attention as well as generating feedback. For instance, Uniqlo showcased nano-fibre technology and lightweight Heattech thermal underwear, alongside its clothing. The brand also revealed that it aims to open 60 new retail stores across China this year. Nike announced it would establish the China Sports Research Laboratory (NSRL) in Shanghai in 2024. Angela Dong Wei, global vice president and general manager of Greater China, says first-hand consumer insights and research data from China will inform the brand's worldwide product trend innovation. The Estée Lauder Companies’s China president and CEO, Joy Fan, also made “local innovation” strategic. “Chinese consumers inspire our product innovation. We will have more China-led R&D (research and development) initiatives, [and] undertake [these] based on Chinese consumer needs.” Sustainability was another point of focus for many brands at CIIE. Canada Goose gave an insight into its partnership with the local government to protect wildlife in the Sanjiangyuan National Park; its first big CSR project outside of Canada. Tapestry-owned brand Coach introduced Coachtopia to CIIE. The sub-brand was launched on the premise that the fashion industry’s linear life cycle doesn’t promote sustainable development. One Coachtopia bag can make two to three more bags or be combined into one. In addition to material choices, the team designed a more environmentally friendly disassembly approach and added a digital passport so consumers can track production materials. “We hope to treat environmental protection as an ecological chain, no longer linear production, procurement, production and sales, but transform it into a cyclical lifecycle,” says Yann Bozec, Asia Pacific president at Tapestry Inc. Comments, questions or feedback? Email us at feedback@voguebusiness.com. More on this topic: How luxury brands forged emotional connections during China’s 520 Big-scale fashion shows are back in China. How important are they for luxury brands? Q2 sees the Chinese luxury market perform beyond Q1 expectations

Make better business decisions

Make better business decisions