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Western brands geta new lease on life
Asians acquire companies with cachet
Question of the Day
HONG KONG — Faded and forgotten Western brands are being dusted off and brought back to life by companies in Asia targeting the burgeoning number of people looking for labels to match new middle-class lifestyles.
Asians have been buying or licensing fashion names - many of them European with long and rich histories, including royal connections or haute couture origins - that have fallen out of favor back home, as they seek to lure the region’s newly affluent.
Among them are Aquascutum, founded in 1851 and whose trench coats were worn by British officers in the Crimean and two World Wars. The British label was popular with movie stars in the 1950s and ‘60s, but in later years its appeal fizzled. Various owners tried to turn it around before a Hong Kong company snapped up the Asian rights in 2009 and now runs dozens of Aquascutum stores in China and elsewhere.
Meanwhile, Westerners are picking up on the idea, with one British startup aiming to bring dormant luxury pen, whisky and British butcher shop brands to Asia’s growing middle classes.
The strategy of acquiring and revitalizing tired brands has proved to be especially successful in China, home to a huge number of nouveau riche combined with a culture that is extremely brand and status conscious.
China is forecast to be the world’s third-largest luxury market by 2014, according to a survey by Bain & Co. Greater China, including Hong Kong, Macau and Taiwan, could become the second-largest luxury market this year, Bain predicts. China’s demand for brand-name consumer goods is also reflected in Italian fashion house Prada’s listing this year on Hong Kong’s stock market.
“Chinese are a lot more brand-driven than other countries, and also they have rapidly increasing income but their brand product knowledge is sort of behind their spending power. That creates an interesting opportunity,” said Vincent Lui, a Hong Kong-based partner at Boston Consulting Group.
While top-tier brands such as Gucci or Chanel may be out of reach, it’s possible for companies to buy up lesser-known second- or third-tier brands, Mr. Lui said. “Then you sort of repackage it in China, you try to rejuvenate it here - it’s kind of hard to rejuvenate it somewhere else. Here you’re starting with a blank sheet of paper.”
A pioneer of this strategy is Hong Kong-based Trinity Ltd., which owns or licenses a handful of heritage British and Italian menswear labels that have been elbowed aside in their home markets by newer fast-fashion outlets.
Three years ago, Trinity bought Kent & Curwen, an English clothing label that started out making school, club and regimental military ties in 1926. The brand’s website features faded black-and-white images of sportsmen wearing cricket whites aimed at evoking English traditions.
“It’s really propagating the story that these brands have strong heritage, long history and the Chinese customers believe in it,” said Sunny Wong, the company’s group managing director.
“It’s very common to find customers walking into a shop and spending a long time in the shop not only trying on clothing they like but asking, ‘What is this brand?’ There’s a big curiosity in why a brand can be so active over 200 years or more.”
But don’t tell that to the mainland Chinese tourists who flock to neighboring Hong Kong for upmarket shopping and believe such brands remain coveted in their places of origin.
Trinity is also the Asian retail licensee for Gieves & Hawkes, a storied Savile Row tailor with a stuffy reputation that is best known for dressing Prince William for his wedding to Kate Middleton. The tailor, which is owned by another Hong Kong company, Wing Tai Properties Ltd., has a history stretching back to 1771 and boasts three royal warrants, signifying its status as an approved supplier to the royal family.
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