Luxury brands put own hands on deck
Owners of luxe lines reassert control over sales and distribution on the mainland as shoppers grow in sophistication and global prominence
Luxury brands are increasingly reclaiming distribution rights from their mainland agents to assert tighter control of sales channels and better meet the growing sophistication of shoppers in the world's biggest luxury market.
The latest example is British fashion house Jimmy Choo, which has acquired its China business from partner Kutu.
Other big brands, including Montblanc, Burberry and Chloe, have also bade farewell to their mainland distributors or agents to run most of their shops on their own. "Chinese luxury fashion consumers are younger, better informed, more exposed globally and ultimately very sophisticated. Having control in the market will allow us to further develop the brand and our business and become closer to our customers in the region," Jimmy Choo chief executive Pierre Denis said.
The London-based brand has opened three stores - in Shanghai, Beijing and Nanjing - since it launched on the mainland in 2009. It plans to raise the number to 30 in coming years.
The mainland market has never been more important for luxury brands. Last year, Chinese shoppers surpassed Americans to become the world's biggest spenders on high-end bags, apparel and jewellery, according to a study by consultancy Bain & Co.
Sales to Chinese consumers accounted for 27 per cent of global luxury consumption, compared with just 1 per cent in 1995.
Rising along with sales volumes is the taste and expectations of mainland consumers, who have more opportunities to travel abroad, comparing goods, prices and services.