Two market theories, or stereotypes, have proven to be accurate about China over the following year.Here they are.
The first is similar to the pandemic: when China sneezes, each and every one cools down.Man, it was true. This is another way to look at the source and demand in China: if each and every Chinese ate just one more pound of bird or drank one more cup of coffee a day, the commodity market would skyrocket, as happened in the 2000s.
The moment is connected and is in the markets, in general.China is adapting to the world’s largest customer market, outperforming the United States in some areas, namely luxury goods.No one likes Gucci bags and Balenciaga Triple S shoes at 750 euros more than Chinese and when it’s their main market, when it’s their bread and butter, the last thing to do is check them out.
We’ve noticed it with the NBA and some of its star players and coaches who criticize the Hong Kong protests opposite Beijing.Unlike the house, they protected activists who protested against the state’s powers.They were protecting mainland China.
We do it with dolce
“They made a video of a Chinese woman looking to eat panneloni with chopsticks,” says Astrid Wendlandt, better known as Miss Tweed in Paris, and of How Luxury Conquered The World. “The Chinese hated this video and many other people began to boycott Dolce.
Many outdoor stores in Shanghai have also stopped promoting Dolce equipment.
“There are many stories on the Chinese Internet about how Western brands have angered the Chinese,” Wendlandt says.”Brands know that you shouldn’t bite the hand that feeds them.”
Add to that all the retail outlets and small businesses that serve the luxury market source chain (consultants, tanneries) and it is clearly one of the toughest industries in the world. There is an explanation as to why LMVH founder Bernard Arnault and his circle of Relatives are the third richest on Forbes’s list of billionaires.
All the big luxury brands love the sign of virtue, as does the NBA here at home.
They must be recognized as global administrators. Many wealthy fashion executives and logo homeowners donated millions of dollars to rebuild the iconic Notre-Dame de France church when the fireplace was lit in April 2019.
They gave Brazil cash to fight fires in the Amazon and gave cash to do the same in Australia.
But when it comes to protests in Hong Kong or in Uighur Muslim detention centers in Xinjiang, a province in western China that is home to one of the country’s most watched minority ethnic groups, Mom is the word.
The United States has imposed sanctions on Chinese corporations such as Hikvision — suppliers of optical surveillance devices in detention centers — and americans that are detaining thousands of Uighur Muslims.han country view.
Few of those with the Chinese market dare to communicate it critically, possibly spreading like gunpowder on WeChat or, God forbid, an athlete or logo becomes a TikTok viral meme, and not intelligently.
Some corporations will diversify further, to rely less on China and its growing number of threat points, from the threat of the home chain to the geopolitical threat, while others, such as LVMH, will close outlets in Europe and open them in China.In this case, Beijing seeks to inspire more locals to shop at home.LVMH makes a professional call.
“China has been a glorious orchard for too long for many brands.It’s an undeniable way to put it when brands are blamed for being too dependent on China,” says Oliver Ralph Muller, founder of LuxeConsult in Switzerland.”Companies want to expand again, markets, yet I don’t think anyone has ever refused to look for new customers,” he says.China is the lowest fruit,” he says.
With 1.2 billion people, billions of workers and tens of millions earning as much or more than the US and European average, the big Western brands that depend on the Chinese customer are not going to call them because they are not up to the task.The NBA makes at least $500 million a year from China, USA Today reported.They don’t have to protect Hong Kong, but they’ll have to be quiet about what they say critically about the continent.China.
Last July, China’s Tencent reached a five-year, $1.5 billion deal with the NBA’s exclusive online partner.Tencent is the largest NBA outdoor partnership in the United States and was created through the indexing billionaire Forbes Pony Ma, the world’s 20th richest man..
The Chinese public television channel CCTV broadcasts NBA games live every week, adding postseason games.The NBA has its own unit in China, called NBA China, valued at $5 billion through the Sports Business Journal in June 2019.
When the Disney star spoke in support of police protests in Hong Kong, many locals asked for a boycott of their film.It’s one thing for Hong Kong to do it. Imagine the continental Chinese doing it, Disney would be in trouble.Mulan enters Disney live on September 4 at midnight New York time.
Most people in this market expect the Chinese traveler to return to outlets in Paris and New York next year, but with the industry war and pandemic giving China a black eye, even the ones with more nuances in its complaint of China, like the Australians, Beijing is increasingly turning its country inward.
If they resort to them, will increased sales in China offset sales losses in Europe and the United States for big brands?Will it consist of less NBA audience in the US?But it’s not the first time For more NBA ratings in China, more Chinese buying King James Jerseys than Americans?
More importantly, will Western brands, which need China for longer, do everything they can to stay there, rather than their home port?Some autolotric observers expect a long-term in which GM will manufacture electric cars in China and export them to the United States..
Luxury industry leaders such as Johann Rupert, the presidents of Richemont Group, owners of Cartier, talk about “serious economic consequences” due to the pandemic and purchasing behavior converted into China.
“For luxury, the Chinese traveler just has to go to Europe,” Says Wendlandt.
The forced closures caused by the pandemic led Harrod’s luxury grocery shopping centre in London to fire another 650 people this spring, or about 15% of its workforce.
Is it China’s fault?
Depends on who you ask. But between the pandemic and Chinese buyers who have more important things to do than spending $2,000 on a Chanel bag, it’s pretty certain that the world’s second-largest economy, once sick with SARS 2, has damaged many industries that have become dependent on it.. Imagine, then, whether Harrod – or opting for a high-end travel-focused grocery purchase in which it delights it is its equivalent – would call China for its role in air pollutants; Or dare you ask Beijing what’s really going on in Xinjiang?It’s not hard to believe that the result may be the same.
I spent 20 years as one of the most productive reporters in the business, adding myself as a Brazil-based staff member for WSJ. Since 2011, I have been focusing on business and investing in large