[Preview of the Weekly] Luxury Brands Shift Strategies in China: High-End and Affordable Luxury Seek Their Own Paths (AI Translation)
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- Sanlitun Taikoo Li in Beijing, a landmark commercial property known for setting fashion trends, is undergoing its most significant shift in 15 years towards a more luxurious branding. High-end luxury brands like Louis Vuitton, Dior, and Hermès are establishing flagship stores there, signaling a 'luxurification' transformation of the area.
- The trend reflects a broader shift in consumer preferences, with 'accessible luxury' brands experiencing declining interest as consumers either downgrade their spending or seek out more niche brands. This change is evident in the reduced presence of light luxury brands like Michael Kors and Acne Studios at Taikoo Li and other prime retail locations.
- Despite the challenges faced by accessible luxury brands, top-tier luxury groups like LVMH have seen robust growth. However, the overall luxury market has shown signs of peaking in Q3 2023, especially due to fluctuations in Chinese demand. Luxury brands continue to invest heavily to capture high-end clientele amidst these market dynamics.
文｜财新周刊 牛牧江曲 包云红
By Caixin Weekly's Niu Mujiangqu, Bao Yunhong
引领京城时尚潮流趋势的地标商业地产项目——三里屯太古里，正在进行开业15年来力度最大的调整，方向是——更加奢侈品化。
The landmark commercial real estate project leading the fashion trends in Beijing, Sanlitun Taikoo Li, is undergoing its most significant adjustment since its opening 15 years ago, shifting towards a more luxurious branding.
这片开放式商业街区长期聚集着各类新兴潮流和设计师品牌，以及优衣库、阿迪达斯等国际快时尚服饰或运动品牌。不过，2023年6月，路易威登（Louis Vuitton，LV）、迪奥（DIOR）两栋高达数十米的围挡在北区核心位置悄然立起；11月初，与它们相邻的另一独栋围挡也露出了“爱马仕橙”。财新获悉，这将是国际顶奢品牌爱马仕（Hermès，OTCMKTS：HESAY）在北京的首家独栋门店。
This open commercial district has long been a gathering place for various emerging trends and designer brands, as well as international fast fashion and sportswear brands like Uniqlo and Adidas. However, in June 2023, towering barricades several dozen meters high for Louis Vuitton (LV) and DIOR quietly rose up in the core area of the northern district; by early November, another standalone barricade nearby began to reveal "Hermès orange." Caixin has learned that this will be the first standalone store in Beijing for the international luxury brand Hermès (OTCMKTS: HESAY).
全球奢侈品三大巨头在此聚首，加上此前设店的Gucci，以及葆蝶家（Bottega Veneta，BV）、Max Mara等奢侈品新店加持，三里屯太古里的目标是完成一场“大奢化”改造。
The three global luxury giants have gathered here, and together with the previously established Gucci store, as well as new luxury boutiques like Bottega Veneta (BV) and Max Mara, the goal for Sanlitun Taikoo Li is to complete a major "luxurification" transformation.
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