Nikkei Interview with Équité CEO Daniel Langer: Luxury brands go digital in China to cushion coronavirus blow
Interview with Daniel Langer, CEO Équité
By NIKKI SUN, Nikkei staff writer, Originally published in Nikkei
HONG KONG -- Luxury brands are turning to China with aggressive digital campaigns in hopes of boosting revenue as the coronavirus pandemic paralyzes international travel and keeps brick-and-mortar shops shuttered.
In the past few months alone dozens of brands -- including Cartier, Montblanc and Prada -- have set up online shops in China. It is a trend that would have been all but unthinkable even a few years ago, when the idea of selling fine leather goods and exquisite jewelry online was looked down on by those in the industry. But that was before the coronavirus.
While Chinese shoppers account for roughly one-third of global luxury sales, most of their shopping is usually done overseas. With international travel banned and Western markets yet to recover, generating sales within China has become a pressing issue for executives of luxury houses.
"China has become the hope for growth of many brands," Daniel Langer, CEO of U.S.-based luxury strategy firm Equite said. "In the last two months, we have been approached by brands at a pace never seen before." Langer said these brands are either seeking advice on enter the China market, or are looking to launch more marketing campaigns in China. "A lot of brands are feeling a sense of urgency," he said.