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The global luxury brand fashion show all but disappeared from China during the Covid pandemic, but the concept is back — led by Dior, which reprised its Autumn/Winter 2023 show (first held in Paris in February) in Shenzhen on 12 July.
Dior’s big-scale show, a repeat of its presentation in France, had a guest list reported to run close to 850 people and was the first held by a global luxury brand in the city of Shenzhen.
Next up were Kenzo and Bottega Veneta, staging repeat shows in Shanghai and Beijing, respectively, at the end of July. Chanel is planning a show, also in Shenzhen, in November.
“Holding big shows in China is more important than ever for luxury brands, especially as the Chinese market is recovering,” says Thomas Piachaud, strategy director of Re-Hub, a digital solutions agency and consultancy. “Brands don’t only win [a share of] consumers’ wallets but also win more attention through these large-scale events. Those brands that don’t do so may [experience] a loss in market share.”
Shenzhen: A new fashion focus
The choice of location of Shenzhen by both Dior and Chanel reflects luxury brands’ wish to move beyond the familiar cities of Beijing and Shanghai. The city, which has enjoyed meteoric growth in recent decades, is keen to raise its profile as a fashion location.
At present, Shenzhen has two luxury shopping malls, Luohu Mixc City and Shenzhen Bay Mixc City. Swire Properties, based in Hong Kong, signed a strategic cooperation agreement for further development with the Futian District Government last year. It plans to bring one of its Taikoo Li or Taikoo Hui developments to the city, which it has already introduced to several mainland cities in China. Meanwhile, New World Development, in cooperation with China Merchants Shekou, is launching K11's first mainland flagship project, K11 Ecoast, in Shekou, Shenzhen in 2024. The giant commercial project will include a K11 Art Mall.
Post-lockdowns, Asia is back
The return of the big luxury fashion show is also evident in key markets such as India, South Korea and Japan. South Korea’s per capita luxury consumption is now the highest in the world, overtaking China and America in 2022, according to Morgan Stanley data. South Koreans are comfortable with displaying wealth through luxury goods — a survey by consultancy McKinsey found that only 22 per cent of Koreans believe that “showing off luxury goods is in bad taste”.
Meanwhile, continued momentum in China remains integral to many luxury brands’ growth. The size of China’s domestic luxury goods market was close to RMB 471 billion (£51 billion) in 2021, according to consultancy Bain & Co, double the figure of 2019 — and a year-on-year increase of 36 per cent on 2020. After the difficulties of 2022, the Chinese market has rebounded strongly in the first and second quarters of this year.
In China, two-thirds of high-net-worth consumers spent more than RMB 15,000 (£1,600) on luxury goods in the second quarter of this year, and 87 per cent of luxury brands reported growth in the same period, according to a survey by Vogue Business and Barclays.
Large-scale shows attract heavy social media attention. Louis Vuitton’s menswear show, staged in Aranya last year, received 270 million live viewers. According to data provided by data solution agency Re-Hub, Dior’s Weibo and Douyin accounts increased their followers by 27,000 and 23,000 respectively on the day of the show in Shenzhen.
A big show can also directly drive sales. Michael Burke, former CEO of Louis Vuitton, once revealed that one repeat show in China had the power to prompt consumers to spend ten-times more.
VICs and the role of service
Sales are typically driven by VICs (very important clients). Their concentration in China’s luxury market is very high, according to a Bain report titled ‘China Luxury Market in 2022’. They are among the first on the guest list of global luxury brands for large-scale fashion shows in China, with the invitees also including VICs from the broader Asia-Pacific region.
For the Gucci Cosmos exhibition in Shanghai, which ran from April to June, the brand invited VICs from across Southeast Asia. Louis Vuitton has also staged small-scale womenswear shows in Beijing, Hangzhou, Chengdu, Guangzhou and Dalian targeting local VICs.
Piachaud of Re-Hub applauds the local focus. “Especially [since the pandemic], the strategy is more and more inclined to the development of the local market, which also leads to events such as local shows that can bring the most direct benefits. Such activities enhance brand loyalty and attention — especially [important] in such a turbulent economic environment.”
Pooky Lee, co-founder of Poptag, a creative brand agency, adds, “Whether it’s a catwalk show or an exhibition, the purpose of offline activities is to create a more comprehensive personal sensory experience, further interact with the local market and give respect to local consumers. It’s also to please them. The repeat show... gives a brand the opportunity to show its unique narrative style and creative ability.”
For Shenzhen this month, Dior created an art installation by Portuguese artist Joana Vasconcelos in Shenzhen Sea World. Bottega Veneta’s Beijing show highlighted creative director Matthieu Blazy’s previous connection with the city of Beijing and will include new looks and China-only handbags especially for the show. Bottega Veneta has engaged heavily with Chinese culture: last year, it launched a project to support the daily maintenance and renovation of the Great Wall of China at Jiaoshan, and released several promotional videos marking festivals such as Chinese New Year and Qixi Festival, the Chinese equivalent of Valentine’s Day.
Chinese consumers appreciate the effort. Actor Jin Tiang, a VIC who attended the Dior show, says the invitation increased her goodwill towards the brand and made her feel more connected to it.
Chinese consumers want to feel valued. The level of service and personal connection becomes as important as the products. “A big show is accompanied by brand dinners, performances, customised services and personal shopping guides — all of which are designed to comprehensively engage the core customers,” says Poptag’s Lee. In China, everything is connected — a holistic approach reaps its rewards.
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