It has apparently been a sensational net year for Richemont, which posted a 30.2 percent net profit for its brands this week. The owner of brands such as Cartier, IWC and Alfred Dunhill reported a $2.59-billion profit in worldwide sales. This is a great example of the return of spending for affluent consumers. This is especially notable since many of Richemont’s brands are jewelry, i.e. splurge or non-necessary items.
Meanwhile, there has been some new development in China. Ever since the ban on giving government employees luxury gifts (that could count as bribes) many categories, including watch and jewelry, have been slipping. This year to date, watch brands have listed, at best, one-digit increases and, at worst, 45-percent decreases in watch sales. However, this news isn’t stopping watchmakers, who point to the outpouring of Hong Kongers and Chinese who visited BaselWorld last month. Hong Kong and China are the No. 1 and No. 3 markets, respectively, for Swiss watches. “Anyone who predicts the decline of China hasn’t got a clue. What we are seeing is temporary, because China has not even begun to deploy its potential,” said Jean-Claude Biver, CEO of Hublot, in a report by WWD.
Furthermore, Carolina Herrera is said to be in the process of honing in on the China market. The designer is making a push into the region with CH Carolina Herrera, the designer’s secondary line. The label has opened boutiques in Seoul, Toyko and Singapore and will be opening in Shanghai and Kuala Lumpur in the fall.
Finally, a few auto brands deployed campaigns this week. Jaguar unleashed a 360-degree campaign for its F-Type including cinema, television, contests, events, social media, digital ads and mobile components. The campaign is said to reach males 25-54.
Also, Audi unveiled multiple new TV spots for its vehicles and brand image in general. The automaker is showing its “Truth in Engineering” tagline on TV and displayed throughout social media.