1. New Luxury Brands in Asia
September 2016
New Luxury Brands in Asia
Ng Jia Wei – ShARE NTU

2. 15 companies have been selected through a 5 stage filter process
FILTER METHODOLOGIES
I have added this slide, please check if the filters make sense and adjust it
Region
China, Singapore?
History
Products
Apparel, Jewelry
History
set-up in last 10 years or less
Ownership
all but global luxury brand
Size
Revenue > $5m

3. Shang Xia (上下) – Set-up 6 years ago, Shang Xia is xxxxxxxx
Put an insight on the title fo ShanXia
History
Positioning
Good info! Important to structure a bit more the slide
Question: is Shangia big enougn? It seems set up by Hermes, a French luxuyr group, os is it out of scope?
Founded in 2009, Shang Xia is a Chinese luxury brand established by Hermès International S.A. and Jiang Qiong Er, Shang Xia’s incumbent CEO and artistic director
Business information
The brand focuses on the heritage of Chinese contemporary design and traditional craftsmanship with a touch of modernity
Its product line includes apparel, jewelry, tea ware, homeware, furniture, and specialty craft products
Some of the materials used include cashmere felt, zitan wood, eggshell porcelain, and bamboo
Prices range from EUR240 to EUR4,100 for apparels and jewelry
2013 revenue: <EUR10m
Profitability is on a slow run and break even is expected at the end of (Source: company press)
Shang Xia has two boutiques in Shanghai, one in Beijing, and one in Paris
The brand has established an online store for gifts but not for its collections
Can you have a price range for jewlery and for apparels, as it is ttwo different segement
Source: Reuters, Website information

4. Luxury Digital Merchandising in Asia
September 2016
Luxury Digital Merchandising in Asia
Huang Qing – ShARE NTU

5. Chinese consumers have shown increasing confidence in online shopping of luxury goods, with 57% indicating they have more confidence
Chinese consumers are increasingly willing to purchase luxury goods online and are more confident in online luxury shopping
45% of Chinese consumers surveyed by PwC in 2015 have bought luxury goods online.
They express that they trust ecommerce for luxury goods below CNY4,200 on average, 191% higher than CNY1,900 in 2014.
57% of Chinese consumers express that they have more confidence in online luxury shopping, while only 4% express less confidence.
Source: PwC, Ruder Finn/IPSOS

6. Despite the increasing confidence in online shopping, the trust in luxury e-commerce remains low
Only 6% of Chinese consumers trust luxury e-commerce in 2015
Chinese luxury e-commerce platforms earn the least trust from Chinese consumers
41% of Chinese consumers will not shop luxury goods online, 38% are willing to try, while those who trust luxury e-commerce to some extent constitute 5% and 1% completely trust.
Source: Ruder Finn/IPSOS, 财富品质研究院

7. Online Channels by Type of E-commerce
Luxury e-commerce present in China can be segmented by 4 types of e-commerce.
Type of e-commerce
Features
Examples
Business-to-Consumer (B2C)
Horizontal
Large number of categories, one-stop-shop
Tmall, Jing Dong, Amazon
Vertical
Specialize in certain categories of luxury
Zhenpin, Secoo, Wanbiao, Jiuxian, Net-a-Porter/My Porter
Online-to-Offline (O2O)
Consumers make purchase and pay online, then obtain products in physical stores
5Lux, Cartier
Consumer-to-Business (C2B)
Customization
Longchamp, Burberry, Gucci
Consumer-to-Consumer (C2C)
Daigou: a person purchases luxury overseas and sells to another person in mainland China
Taobao
Second-hand luxury goods
Alaying, Aidingmao, Secoo

8. Online Channels by Operator
Luxury e-commerce present in China can be segmented by 5 types operators.
Type of operators
Features
Examples
Chinese third-party platforms
Run by Chinese operators.
All categories including luxury goods:
Tmall, Jing Dong
Only Luxury:
Zhenpin, Secoo, 5Lux, Wanbiao
Luxury and high-to-medium-end:
Shangpin, XIU, Jumei, Jiuxian
Foreign third-party platforms
Run by foreign operators.
Net-a-Porter / My Porter, Amazon
Official website stores
Consumers make purchase on brands’ official websites.
Cartier, Coach, Burberry, Armani, Chow tai fook, Swarovski, Shang Hai Tang
Wechat stores
Consumers make purchase on Wechat’s built-in e-shop.
Bvlgari, IWC, Cartier, Mont Blanc, Chanel (No5 L’EAU perfume), Longchamp
Departmental/ Outlet online stores
E-shop run by departmental chains or Outlet stores in China.
Yintai, Wangfujing, Aolaigo