In “Headlines from China,” we share the biggest news stories about the luxury industry in China that have yet to make it into the English language. In this week’s edition, we discuss:
- Shandong Ruyi listed on the credit watch list
- Coach, Tory Burch, Tommy Hilfiger, and more failed quality inspection in Shanghai
- Christian Louboutin Beauty launched on Tmall
Shandong Ruyi Listed on The Credit Watch List – Sina Fashion
According to the latest announcement from the Chinese credit rating agency Dagong, Ruyi Technology Group Co., Ltd. decided to include Ruyi Technology and its multiple bonds on the credit watch list, with many of their issued bonds, valuing around $345 million, considered uncertain. Not long ago, Ruyi had been repeatedly downgraded by international rating agencies such as S&P and Moody’s. Some analysts believe that Ruyi’s debt problem is directly related to the purchase of luxury brands that cost more than 40 billion yuan in the past decade. Dubbed China’s LVMH, Ruyi has acquired many luxury brands namely British trench coat brand Aquascutum, the French accessible luxury group SMCP, and many other luxury brands.
Coach, Tory Burch, Tommy Hilfiger, And More Failed Quality Inspection in Shanghai – Jiemian
Recently, the Shanghai Municipal Market Supervision and Administration Bureau conducted quality inspections, which revealed some alarming results. Of the 255 batches sampled, 56 batches failed, including some from well-known brands such as Tory Burch, Coach, Tommy Hilfiger, and more. These products were from well-known Chinese shopping malls like Jiuguang Department Store, Grand Gateway Plaza, Raffles City. The concerning items in this random spot check had issues with fiber content and extractable heavy metals. For example, a knit top from Coach was found to have unacceptable fluff, which can directly affect the aesthetics and comfort of the item.
Christian Louboutin Beauty Launched on Tmall – 36Kr
Christian Louboutin launched an official store on Tmall selling its beauty products, which will go live on December 18. So far, this is the brand’s only authorized online sales channel for beauty in China. Both parties promised that beauty products will be a priority on Tmall, with a full supply so that consumers don’t have to rely on cross-border shopping.