The Logic Behind Louis Vuitton’s Hong Kong Show

November in southern China is shaping as much as be a story of two cities.

At the beginning of the month, vogue insiders gathered in Shenzhen for the re-staging of Chanel’s newest cruise present. On Nov. 30, they’ll collect once more for Louis Vuitton, this time in Hong Kong — throughout the border in China’s particular administrative area however simply quarter-hour away by high-speed rail — to see Pharrell unveil his second menswear assortment for the home on town’s Avenue of Stars. The spectacle will likely be held in partnership with native tycoon Adrian Cheng, who owns the K11 Musea mall that sits beside the attraction.

Till lately, few manufacturers staged native activations in Shenzhen, calculating that town’s rich may simply go to close by Hong Kong or Guangzhou to buy. However three years of Covid restrictions, which put Hong Kong off-limits for mainland Chinese language, and Shenzhen’s rising tech wealth, have made town extra necessary to manufacturers.

On the similar time, Hong Kong’s picture and economic system have each suffered from the squashing of pro-democracy protests by Beijing’s contentious nationwide safety legislation and three years of inhabitants decline, together with a wave of locals transferring completely abroad and the departure of extra expatriate expertise.

And but Vuitton is betting on Hong Kong for its subsequent menswear extravaganza. Saying the present, the model described town as “cosmopolitan and vibrant” and “a melting pot of East and West that has given rise to a thriving metropolis of artwork, tradition and business.”

However aside from the distinctive setting Hong Kong supplies, there are additionally clear industrial motives at play. Luxurious is extremely uncovered to key world cities: the world’s high ten vogue capitals account for roughly one-fifth of all luxurious factors of sale. And never way back, Hong Kong alone was answerable for greater than 5 p.c of world luxurious gross sales, based on analysts, placing its significance up there with Paris.

These days could also be gone, however the metropolis stays crucial to the luxurious retail sector. Citing Euromonitor knowledge, the South China Morning Put up reported in August that Hong Kong had regained its spot as the worldwide market with the highest per capita expenditure on luxurious items, beating Switzerland and the United Arab Emirates.

“I truthfully suppose that Hong Kong in all probability wants a greater PR individual,” mentioned Kevin Poon, the Hong Kong-born serial entrepreneur behind streetwear model Clot and retailer Juice. “It’s one of the crucial underrated cities proper now. There’s a variety of refined prospects in Hong Kong.”

The town’s seven million inhabitants embrace a robust and savvy clientele that’s in control on the most recent developments. As third- and fourth-generation luxurious patrons, many Hong Kong buyers have had native entry to huge manufacturers for much longer than their counterparts within the mainland. Nurturing these beneficial consumer relationships will likely be high of thoughts for model executives who’ve been absent throughout the pandemic.

The final main occasion Louis Vuitton hosted in Hong Kong was an exhibition in 2017. By placing on a giant present now, the model can refresh its relationship with native VIP purchasers and pay tribute to their hometown however town’s current troubles.

Although it has misplaced a few of its lustre, Hong Kong additionally stays a key journey vacation spot, attracting prosperous guests from throughout Asia and additional afield. Louis Vuitton’s closure of a retailer in Causeway Bay’s Times Square mall in 2020, on the peak of town’s protests, generated loads of hand-wringing headlines about its future. However much less publicised was the 2022 opening of a giant duplex retailer in Hong Kong’s airport, a part of a wider push by mum or dad LVMH to leverage town to focus on worldwide tourism.

Tellingly, K11 Musea-owner Cheng has additionally solid a vote for Hong Kong’s resilience as a journey hub. His subsequent growth, 11 Skies, is an enormous $2.6 billion “retailtainment” property subsequent to the airport. Its first section opened in July, enabling the general public to get a glimpse of what one vogue insider’s wager is for the way forward for Hong Kong.

What Else to Look ahead to This Week

Monday

Tuesday

VOICES, BoF’s annual three-day gathering, kicks off at Soho Farmhouse outdoors of London

Wednesday

Farfetch, Foot Locker, PVH, and Victoria’s Secret report earnings

Iris van Herpen retrospective opens on the Musée des Arts Décoratifs in Paris

Thursday

COP28, the UN’s predominant local weather convention, opens in Dubai

Louis Vuitton exhibits its males’s pre-fall assortment in Hong Kong, Dr. Martens earnings

Friday

Saturday

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