As one industry source noted, the brand has been relatively quiet in China in recent years, despite embarking on an ambitious expansion drive in 2007. It is thought that Versace’s flashy designs are less preferred by China’s luxury consumers.
The decision to retain ProximityLive also points to the general preference for luxury brands to simply adapt global above-the-line campaigns in China.
Proximity will focus on below-the-line executions and events, in association with a specialist production agency.
China’s luxury goods market is growing by as much as 30 per cent per year, and is a key target for luxury retailers looking to offset flagging sales in their home markets.
The World Luxury Association estimates the market reached US$8 billion in 2007, accounting for 18 per cent of the global total.
In addition, Versace will face competition from lower-key edgier brands like Viktor & Rolf and Stella McCartney.
The rollout of Lane Crawford in the mainland reflects this trend, with the store targeting an emerging group of younger, urban ‘trendsetters’.
For ProximityLive, Versace joins a client portfolio that also includes Calvin Klein, Fendi and DKNY.
“We have the advantages of a boutique agency in terms of flexibility and the ability to offer quick creative full service, along with the strong corporate backup of being part of the Omnicom,” said Proximity Live managing partner Angelito Tan.
Versace is planning to launch nine boutiques in Asia this year, as part of a $70 million investment drive to make this region its second-biggest revenue generator, after Europe.
Of the nine new stores, two will be located in mainland China, along with two in Taiwan, one in Hong Kong and one in Macau.
Versace redesigns push
SHANGHAI - Versace has appointed Proximity Live as its China AOR for marketing strategy and PR, as the iconic fashion brand attempts to tap into a booming luxury market that is currently dominated by Louis Vuitton, Gucci and Burberry.
