Summary

Junh Li initially discussed the services on offer with JL Warren - who currently have 600 people monitoring traffic for them on a variety of projects. The call focused on the monthly survey of brand retailers, one of the products available with a subscription to JL Warren. These include, data from store checks, traffic data, bag checks and service providers. Post COVID-19, JL Warren has observed significant tail wind for luxury consumption growth in China. She explained that this tail wind has been caused primarily by three factors. Firstly, the lack of travel opportunity as a key factor in bolstering the demand for luxury goods in China. As people are spending less overseas, JL Warren has seen increased spending domestically. Secondly, government policy - highlighting that government action to reopen duty free areas in urban cities has further bolstered luxury consumption growth. Finally, mentioning the tremendous improvement in merchandising for the Chinese market leading to improved supply chains as possibly the most important contributor to the tail wind. This improvement has led to buyers receiving orders at far faster rates. The call touched upon the continued consolidation of mega brands such as Chanel, Hermes, LVMH, Dior, and Gucci. JL Warren first observed this trend in 2019 but has seen it continue into 2020 and post COVID-19. The market share for these mega brands is often higher in China than the global average due to the cultural draw of bigger brands within China – with demand consistently outstripping supply. These mega brands are also much more likely to thrive in these coming months, as they have deeper pockets and are able to throw money at social media, marketing campaigns and discount events, thus helping the big get bigger, while the mid-sized retailers disappear. Other companies mentioned on the call and falling into JL Warren’s coverage include: Adidas, Nike, Puma, Moncler, Canada Goose, Burberry, Tesla, Estee Lauder and L’Oréal.

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