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The Luxury Conversation

With a career not only spanning, but creating global fashion e-commerce, Claire Chung is a renowned expert on Chinese and international retail, digital, fashion and culture.
Speaking five languages and having lived across continents, Chung was a pioneer in leading Chinese cross-border commerce, launching China’s first luxury multibrand online fashion retailer. As vice-president of ShangPin.com, Chung forged epic deals, bringing global brands and Western government entities into China with strategic partnerships.
 


 

Part 2: The renowned @suzymenkesvogue sits down with our CEO @federicomarchetti, to discuss what the #luxury customer wants, in an exclusive interview for @voguemagazine . . . #CondeNast #CNILuxury #YNAP #Vogue#innovation #technology #tech#ecommerce #online #shopping#onlineshopping #luxury #fashion
A post shared by YOOX NET-A-PORTER GROUP (@ynap) on May 4, 2018 at 9:52am PDT



In 2015, Chung moved into a newly created executive role at Net-a-Porter group level, to expand all businesses in the China market. After the historic merger between Net-a-Porter Group and Yoox Group, which created the world’s number one retailer in luxury, Chung was promoted to lead all of the Yoox-Net-a-Porter Group‘s businesses in China.
HK$700,000 wardrobe from Net-a-Porter will dress you for a year
We met with Chung to hear her insights on the China luxury market.
We have seen so many brands enter China – while more are in the process or considering the level of involvement. How do you see the ‘entering China’ topic in 2018?
When I joined the business in 2015, it was in a newly created executive position at group level, with many of the functions reporting into China vs HQ. This was a big shift and recognition of the importance of the China market and a realisation of how empowering the local team is the only road to success.
 


 

Thanks to the #loyalty of our 3.1m active customers, with their 10m orders, and to the hard work of over 4700 colleagues around the world, we have achieved great results in 2017: record-breaking revenues over €2bn, up 17% on organic basis. As we like to say, the best is yet .com / to come #YNAPResults #unbeatableYNAP
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In the digital sphere, China has a unique ecosystem that is different from the rest of the world – especially pertaining to marketing functions. Localisation is a big focus at the Yoox- Net-a-Porter Group and China had its own dedicated China Plan. We all know of many companies entering and exiting China simply because they replicated the global model and never bothered to localise and truly try to understand the market and its evolving luxury customer base.
Chopard enters the e-commerce game with Net-a-Porter collaboration
I have worked and lived in New York, Milan, London and Hong Kong – all cities where we have offices – and I can say without comparison, the pace of change in China and the rise of the Chinese luxury consumer is astounding. I have spent more than 20 years in the luxury sector and I am awed by the transformation in China. Its economic rise is driving growth across Asia and this is not a temporary trend but a new reality that brands must take into consideration.
 


 

Today, we have more than one reason to celebrate: on this day 9 years ago @YOOX opened the world's first sustainable fashion online destination, YOOXYGEN, and launched our 100% recyclable packaging, Ecobox™. We were the first in e-commerce to take action on such important issues, and we continue to carefully monitor our impact in order to reduce it every day. Happy 9th birthday YOOXYGEN and Happy Earth Day to you all! . . . . . .#EarthDay #YOOX #sustainability #sustainablefashion #online #ecommerce #sustainable #luxury #fashion #style #stylist #stylish #gang #onlineshopping #shoponline #new #generations #young #ideas #eco #ecommerce #planet #earth #day #2018 #earthday2018 #YOOXYGEN
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The Chinese customer is not only in China but travelling globally. Many are sending their kids to the top boarding schools in US, Britain and Europe, so the new Chinese diaspora is truly a unique demographic who are travelling and shopping around the world.
If brands want to be successful in China, they also need to understand the values of its customer and its much younger demographic that should be relevant in their brand messaging and merchandising.
Some apps which never sold luxury are now opening luxury-specific sections – how do you see this working?
 


 

2017 preliminary net revenues: YNAP registered a #record performance with over €2 billion sales in the year, positive growth across all #business lines and good growth in all our key regions. Thank you to the entire #YNAP team for its hard work #YNAPResults
A post shared by YOOX NET-A-PORTER GROUP (@ynap) on Jan 15, 2018 at 8:53am PST



China is a competitive market built on “platforms” with each platform having a certain customer base. Success depends on many elements including providing the discerning luxury customer with impeccable service, a highly curated edit of the most desirable luxury brands, capsule collections and so on.
Net-a-Porter and Mr Porter throw lavish Christmas party
Will sustainability have a place in luxury in China?
Consumers here are generally segmented by generation. The new luxury consumer in China is young and are only-child consumers: that is a unique demographic. I think the new generation is aware of the environment and is interested in expressing their personal values in the brands they buy. It’s an evolution of discovery.
 


 

@Fendi and @NETAPORTER take logomania to the next level, with the exclusive #FFreloaded Capsule Collection launching today. Celebrating Fendi ’s heritage, the iconic FF logo originally designed by #KarlLagerfeld in 1965 takes centre stage on #streetwear silhouettes. Available now on #NETAPORTER. Link in bio! #NETAPORTERxFendi #YNAPLaunches
A post shared by YOOX NET-A-PORTER GROUP (@ynap) on Apr 13, 2018 at 3:40am PDT



There are also demographics which are dependent on aspects such as a tier 1 vs a tier 2 consumer. So if your day-to-day life is [affected] by certain topics, you think about sustainability. Sustainability is really just beginning but growing in importance.
What do you look at outside of your own direct industry and day-to-day concerns?
I’m always looking at how different technologies can bring relevancy to what we do. Technology is what is going to change the customer experience, and China is at the forefront of that. If you look at VR, then it could be slightly gimmicky, especially as you need a headset or lens, and with AR you are using something to point and look around. For me, AI is much more interesting as a transformation point. It has real use and can seamlessly improve the user’s experience.
Amazon, Net-a-Porter pushing their own private fashion labels
How do the up-and-coming Chinese brands compare to existing luxury brands?
 


 

Seatbelts on, hold tight…and we’re on! It’s a dream come true for us and for the millions of fans of one of the world’s most renowned #Italian luxury excellences: the new @scuderiaferrari ONLINE FLAGSHIP STORE Powered by @ynap is now online! #YNAPLaunches #Ferrari
A post shared by YOOX NET-A-PORTER GROUP (@ynap) on Mar 21, 2018 at 6:09am PDT



There is a lot of talent in China. Within the fashion industry, we need the development of more industry “infrastructure” to support their development and success. I hope to see more trade shows open during Shanghai Fashion Week. We already see the opening of more multibrand boutiques or “select” shops in China and this should further support the emergence of local designers within the China market.
Yoox Net-a-Porter CEO Federico Marchetti dreams of selling Ferraris online one day
It can be difficult to get global buyers to come here, as the overseas fashion weeks are already exhausting for people who attend them. So this means that Chinese designers must go to New York, London or Paris to sell and expand distribution into the international markets to [be successful]. This is an issue that needs addressing to better support the talented Chinese designers coming through.
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This story originally appeared on The Luxury Conversation.


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Claire Chung, of Yoox Net-a-Porter Group, China. Photo: The Luxury Conversation

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Chung says the younger generation of Chinese shoppers have different values and interests, and brands need to develop strategies that are targeted at new Chinese consumers and make use of Chinese platforms


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