Email Service Notes (Jesse)

Your Original Email

The expert used to work in the DFS group for more than 18 years, and he has strong connections with the high management of the key luxury brands. He shared his view about how these brands currently work globally. He mentioned that the luxury industry had been stable in 2022, growing business in the Middle East and Latin America. The declines in Asia, particularly mainland China, are offset by growth and better trends in America, the Middle East, and parts of Europe. In general, the expert has a positive outlook on the luxury market in 2022, especially the top-tier brands in high fashion and prestigious cosmetic categories, such as Chanel, Dior, Hermes, etc. Most high fashion leather brands work pretty well due to increasing brand awareness, newness, exclusivity, VIP loyalty program, etc. He also shared his positive outlook on the prestigious cosmetic category and compared the brands’ different strategies, such as Estee Lauder, L’Oréal group, etc. He thinks China Duty Free Group might have some challenges in achieving a higher margin because of its discount frequency and domestic inventory. He thinks the high-end luxury brands might not work with CDFG closely because the brands don’t want to lose control of the brand autonomy, while CDFG’s frame contract might include too many restrictions.

Your Edited Email

The expert used to work in the DFS group for more than 18 years, and he has strong connections with the high management of some / all key luxury brands. He shared his view about how these brands currently work globally and he mentioned that the luxury industry had been stable in 2022, with growing businesses in the Middle East and Latin America. The decline in Asia, particularly in mainland China, has been offset by growth and an upward trend in America, the Middle East, and parts of Europe. In general, the expert has a positive outlook on the luxury market in 2022, especially for top-tier brands in high fashion and prestigious cosmetic categories, such as Chanel, Dior, Hermes, etc. Most high fashion leather brands are performing pretty well due to increasing brand awareness, newness, exclusivity, VIP loyalty programs, etc. He also shared his positive outlook on the prestigious cosmetic category and compared different strategies of brands such as Estee Lauder, L’Oréal group, etc. He thinks China Duty Free Group may have some challenges in achieving a higher margin because of its discount frequency and domestic inventory. He thinks the high-end luxury brands might not work closely with CDFG because the brands don’t want to lose control of their brand autonomy, while CDFG’s contract might include too many restrictions.