This week in the news, Chinese are spending more time at the movies, Korea’s AmorePacific is poised for success in China, Chloé is increasing its presence in China, Rusham’s vineyards appeal to China’s wine buffs, and TopShop is becoming popular with China’s online fashionistas.
The future of China’s film industry is looking promising as more and more Chinese consumers are spending time at the movies. For the past ten years, Chinese box office receipts have increased at more than 30 percent annually, thanks to the country’s growing sector of middle class consumers. China largely contributed to the record earnings of the global box office in 2013, a whopping $35.9 billion in revenues. Chinese cinema has great potential for growth as well. There are 40,000 movie screens, or one for every 8,000 people, in the United States, but only 20,000 screens in China, or one for every 70,000 people. But almost 100 new screens are being put up weekly in China, and the country is now poised to take over as the biggest market in the world.
Over the past year, South Korean beauty brand AmorePacific’s share price has increased by almost 160 percent to around Won2.3m. One-fifth of the company’s revenue comes from outside South Korea, and overseas sales increased by 38 percent to Won382.7bn ($349m) during the first half of this year. AmorePacific’s overseas sales for all of 2014 are expected to reach Won700bn as growing interest in South Korean drama and music helps boost sales of its skin care products in China and other parts of Asia. Though AmorePacific is “still finding its feet in China” and only has a 1.2 percent share of the country’s personal care and beauty market, the brand has high hopes for expansion. AmorePacific already maintains about 3,500 shops in China.
French fashion house Chloé is pushing its presence in China forward. Clare Waight Keller, the brand’s creative director, presented Chloé’s spring 2015 collection in Beijing recently in celebration of its fifth anniversary in the Chinese market. She chose only Chinese models for the show. Though Chloé’s Chinese sales are still behind those of Japan, its number-one Asian market, the brand has been gaining momentum in China as female shoppers look for more sophisticated, understated luxury, particularly in the ready-to-wear category. Finding retail locations in China is one of the brand’s central challenges, so going forward, Chloé will focus on improving existing locations to better meet the needs of their clients instead of just opening new boutiques.
In Rushan, a coastal county in China’s Shandong province, the Taila International Chateau Ecological Culture Area has begun to develop private vineyards. The space has been designed to house 300 chateaus and 2,000 hectares of vineyards. Investors can purchase a 667-square-meter vineyard for 30 years at the cost of 180,000 yuan ($29,400). Vineyard investors are also offered services such as grape planting, wine production, and designing a personal trademark. The new vineyard plots are notable because they allow Chinese consumers to make wine within their own country at more affordable costs. The Taila area is also an excellent wine region, and is the source of more than 30 percent of China’s wine products.
The British fast-fashion brand Topshop is growing in popularity among Chinese shoppers, thanks to its new visibility on the online retailer Shangpin. Topshop opened its first flagship store in Hong Kong in 2013 and two more in the city earlier this year, but the brand didn’t hit the mainland until it began selling its products on Shangpin at the end of this past summer. Mobile devices have been pivotal for Shangpin; the retailer makes more than 65 percent of its sales on them. When the e-retailer launched Topshop, it set up a huge pop-up station with displays of the latest collections at The Place, as part of a two-day promotional campaign called “Mobile Adventure.”
image source: chloé