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    International Luxury Goods Merchants Collectively Enclose World Expo, Shanghai

    2010/5/28 14:44:00 29

    World Expo

    In Shanghai, the commercial property project of Shanghai's SHANG Jia center, which was invested by French road LVMH, has broken ground. Three years later, Louis Weedon's (Louis Vuitton), Christine Dio (Christian Dior), Fendi (Fendi), Givenchy (Givenchy), Hennessy (Hennessy) and other more than 60 top international brands will be assembled in this building.

    Similarly, in Shanghai, World Expo, which is about to open, Italy Pavilion will take the fashion show of D&G, PRADA, Armani, Versace and other world famous fashion brands as the main exhibition items.

    As the source of world fashion pioneers, France and Italy's enthusiasm for China is writing the twenty-first Century version of Marco Polo.

    Heading for China

    Last month, Coach, a high-end handbag seller in the US, said that it is accelerating the development strategy in China and greatly improving its long-term development plan in China.

    The New York based company has increased its sales plan in China in the fiscal year from 10 to 15, including the opening of its flagship store in China. Frankfurter, chief executive of Coach, said: "we are doing our best to improve quickly, and we haven't had any problems in finding suitable store locations." "We estimate that the total size of the Chinese market is expected to increase to $2 billion 500 million in five years, and the goal of Coach is to get 10% of the total." Frank Ford said that the growth rate of the company in the Chinese market has surpassed that of the United States and Japan.

    Frank Ford's anticipation of China's luxury market is obviously not matched with the current economic environment, but in fact, the luxurious feast has never ended, but it has shifted from one country to another.

    According to the latest Bain and Company forecast by the consulting agency, sales of advanced clothing, accessories, tableware, cosmetics and jewellery will drop by 16% this year. Japanese sales are expected to drop by 10%, while Europe's decline is expected to be 8%. Luxury sales in Asia, led by China, will grow faster than expected. Bain said that luxury sales in mainland China are expected to grow by 12% this year.

    MimmaViglezio, executive vice president of Italy brand Gucci and global public relations manager, used the word "explosion" when talking about China's luxury market. He said optimistically: "in this country, 175 million people are consumers or potential consumers of luxury goods. Even if only 10% of them start to act, that means the sum of the two Hongkong population."

    Data from the World Luxury Association (WLA) show that Chinese consumers spend more than $6 billion a year on luxury goods such as high-end leather bags, cars, clothing, accessories and cosmetics. Experts predict that China's luxury goods market will reach US $14 billion 600 million in 5 years and become the world's largest luxury trade and consumption center. "More and more people know more about luxury goods, and better understand that their consumers are no longer satisfied with the use of lower level products. In the Chinese market, the differentiation of customers is more clear." LaPrairie senior marketing and public relations manager Pu Yingying said.

    So, "going to China" is no longer empty talk. Gucci is the best example. In the past two months, Gucci Wuhan flagship store, Shanghai Golden Eagle International Shopping Center and Beijing Lotte intime department store opened one after another, of which Shanghai's new store is its largest flagship store in mainland China. CEO GiancarloDiRisio of Versace says China is the largest market for Versace in Asia. Salvatore Ferragamo2009 added 8 new stores in China.

    By the end of December 2009, about 226 retailers in 44 cities in China had given their prominent positions to fashion luxury brands. These top fashion players in the world's top 100 have opened 1344 stores in China and have successfully won sales figures that surprised them.

    Seize Shanghai heights
     
    "This year, almost all luxury stores are changing their faces, busy expanding their stores and luxurious decorations." Swatch staff Zhang Hongwei told reporters that because of the story of a luxury owner, a Birkin handbag, worth 999999 yuan, was borrowed from France in the Hermes store in Hang Lung Plaza, Shanghai. It was bought in cash a few days later. Shops were forced to suspend business for a day in order to count large sums of money. "This is the charm of China."

    To be sure, opening up before the 2010 Shanghai Expo is enough to affect the annual sales performance of luxury stores.

    Reporters learned that on the Huaihai Road, several luxury flagship stores are stepping up their renovation, many of which are "the world's largest stores" level of image shop. In Huaihailu Road, the billboard of LV has been suspended on the roof of Li Bao Plaza. The brand will set up the largest flagship store in China, with a total area of 1700 square meters.
     
     
    Optimistic about Chinese market

    Ermenegildo Zegna recently announced that it will be stationed in Li Bao Plaza. The newly opened flagship store will be the fifth global concept store after Milan, New York, Tokyo and China Hongkong. It is also the largest concept store in the mainland. In the south of Li Bao square, the two old buildings, which had been French concession, will soon be transformed into the "Hermes house". It is expected to be partially opened in World Expo, Shanghai this year. In the middle of Huaihai Road, No. 798 to No. 806, a series of Piaget, Cartier and other list shops.
    Hongkong square, one street away from Li Bao Plaza, has also opened a corner of the fence, revealing a new wall. At present, the luxury flagship stores that are located in Hongkong square are over 1000 square meters, including Giorgio Armani, Tiffany, Cartier, Coach and so on.

    At the end of 5 2009, He Hongqian, President of the big business and Bernard Arno, President of LVMH, arrived in Hongqiao, Shanghai, to attend the foundation laying ceremony of the commercial real estate project of the SHANG Jia center. The original building of the SHANG Jia center, LV building, is designed by the famous Japanese architect, Aoki Chun, from the effect diagram. It looks like the "skirt of a dancer". In the use planning, the SHANG Jia center will become an integrated store of all luxuries in LVMH. "Despite the current global economic downturn, we are well aware of the potential of the Chinese market and we are full of confidence in the Chinese market." Pan Qi, the representative of Shanghai Road, told reporters: "the construction cycle of this project is expected to be 3 years. The fashion center will attract all high-end brands to enter, and we will not exclude the brand of our competitors."
     
    The bigger luxury feast will be staged in Shanghai this summer. Luxury goods such as the world's top sports cars, famous fashions and famous Italy paintings will converge on the Italy National Pavilion in World Expo. Belyanmino Koundieri, the general representative of Italy Pavilion, said with interest that during the six months' exhibition, the Italy Pavilion will display the fashion show of D&G, PRADA, Armani, Versace and other world famous fashion brands. "When you were in World Expo, did you want to sign famous designers?" Zhang Hongwei said that the investment from Swatch group will complete the renovation of the Peace Hotel in World Expo, Shanghai before being transformed into a free shop for shops, exhibition centers and global artists.
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