Earlier this week, Neiman Marcus announced it would be closing its Shanghai warehouse and begin using U.S. facilities to fulfill its China-bound shipments. Hearing about a slowdown in China’s luxury demand is nothing new, but seeing actual changes to retail strategy in China is something entirely different. Given Neiman’s enthusiastic and expensive ($28M) partnership last year with Glamour Sales Holdings, the Chinese company they hired to operate–and that will continue to operate–their in-country e-tail site, the decision came as a surprise to many in the luxury community. Regardless of Neiman’s announcement or any other brand that may come forward in 2013 with a similar scale-back strategy, there is no denying that the center of gravity for luxury has shifted East to China and its neighboring APAC markets. In the new video above, L2’s Head of Research & Advisory Maureen Mullen talks about this transition, the near-term financial uncertainty in the region, and highlights the brands that have adjusted their marketing and digital strategies most effectively.
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