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This is the first in a new series, Next In Asia, exploring the impact of technological and economic transformations across Asia-Pacific and the influence on local style, community and culture. This article is part of our Vogue Business Membership package. To enjoy unlimited access to Member-only reporting and insights, our NFT Tracker and TikTok Trend Tracker, weekly Technology and Sustainability Edits and exclusive event invitations, sign up for Membership here.
On arrival at Chanel’s runway for its 2023 Métiers d’Art collection in Tokyo on Thursday, guests walked through a dance performance entitled “Slow Show” — a 20-minute slow-motion dance by 80 performers — directed by French choreographer Dimitri Chamblas. A musical performance by Senegalese artist Nix and Japanese guitarist Ichika Nito followed. On Friday, there will be a masterclass hosted by the brand with Tyler Brûlé, chairman and editor-in-chief of Monocle, for 350 students from Tokyo s leading fashion, art, design and management schools.
The show was “a way to celebrate creativity, not only in fashion but also music and dance”, Chanel’s president of fashion Bruno Pavlovsky tells Vogue Business backstage. On the decision to stage a repeat runway in Tokyo for the collection, which was first presented in Dakar last December, he explains that the brand felt it aligned with the “elegant” style seen among Japanese consumers, and there was an eagerness to connect on a local level in Asia after years of pandemic travel disruption.
“We feel a bit guilty not to be able to organise things during the last three years. Now, we feel a need to reconnect with our customers, with the details of the show and with the energy of the moment,” Pavlovsky says. “It’s important to be able to engage as many customers and guests [as possible]. We welcome them to celebrate this Métiers d’Art collection and the synergies that we see in Japan.”
South Korea may have been catapulted into the luxury limelight over the past year — with big brands like Louis Vuitton, Gucci and Dior staging shows in the country — but Japan has stayed strong amid a slowing US economy and bumpy post-Covid recovery in China. In February, Marni staged its Autumn/Winter 2023 show in Tokyo, the second of four of the OTB-owned brand’s travelling runways (its Spring/Summer 23 collection was shown in New York; the following two cities have not yet been announced). Prada brought its ninth iteration of Prada Mode, a travelling cultural activation, to the city in May.
To hedge against uncertainty in China and buy time to understand how consumers have evolved, savvy brands are broadening their horizons, which may explain the boost in luxury initiatives in Japan, McKinsey said in an email to Vogue Business. As Chinese consumers start travelling overseas again, Japan tops the list as the international destination of choice at 32 per cent, followed by Europe (21 per cent), Korea (17 per cent) and South East Asia (16 per cent), data from the consultancy shows.
Japan’s luxury market is forecast to grow by approximately 4 per cent through 2025, with growth coming from domestic consumers, according to McKinsey. Kering, Burberry, Prada and Richemont all reported a sharp acceleration in Japan in the latest quarter that helped offset ongoing declines in China, and also strong sales for the full fiscal 2022 year. Chanel, which counts 33 doors across Japan (a few are standalone boutiques, but the majority are located inside department stores) has seen a similar trend. “2019 was a very good year for us in Japan. 2020 was a bit more difficult. We’ve seen a strong recovery since. Business is back,” says Pavlovsky.
Unlocking success in Japan
Japan is unlike other APAC countries. To take advantage of its luxury market, brands need to consider a different approach. In a largely traditional society, where executives still exchange business cards, use fax machines and pay with cash, over 80 per cent of luxury consumers in Japan say that offline is a key part of their shopping journey, with 36 per cent shopping offline exclusively, according to a 2022 survey of over 3,500 consumers across East Asia (China, South Korea and Japan) by McKinsey. By contrast, 80 per cent of Chinese consumers prefer to buy online.
Japan’s luxury consumers cite “kind manners”, “good product knowledge” and “ease of finding items” as the top reasons they like to shop offline, according to McKinsey. With the highest senior population ratio in the world, many of Japan’s luxury shoppers tend to be older, and, having saved up their hard-earned money to buy a premium product, the highest level of service is expected, luxury executives agree.
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The preference for offline retail aligns with Chanel’s long-standing approach to not sell fashion online, says Pavlovsky. (Only fragrance, cosmetics, skincare and sunglasses can be purchased via its e-commerce site.) “If you want to be connected with the brand, to understand our collection, assortment and energy, the only way to understand is to take some time in the boutique. We are happy to use digital tools to connect to our customers [and] offer support and information, but the real experience is happening in the store.”
Branching out into hospitality can also enhance the offline experience. On the tenth floor of Chanel’s flagship boutique in Ginza is Beige, a two-Michelin-star fine dining restaurant by French-born Monégasque chef Alain Ducasse. Other luxury food spots in Tokyo include Gucci’s Osteria da Massimo Bottura; Bulgari’s Il Risorante Luca Fantin; Café Dior by Ladurée; and Louis Vuitton s Le Café V, which opened in 2021 inside its seven-storey flagship after a three-year renovation.
While the physical experience is king in Japan, brands can still use online platforms to connect with local consumers. Chanel, Gucci, Valentino and Prada are among the luxury brands with official accounts on popular local messaging apps such as Line. These feature well-known local celebrities and influencers and provide more tailored information about store-based activations and new product releases.
Reconnecting with local customers
Italian luxury brand Marni opened its first store in Japan in 2000 and currently has 25 in the country (out of 96 globally), including three outlets. Its largest is on the ritzy commercial stretch of Omotesando Hills in Tokyo. Another opening is planned within the coming two years, and will be based on the new store concept unveiled by creative director Francesco Risso in Milan last June. There are plans to upscale some of its existing prime retail locations in the country, according to CEO Barbara Calò. Marni has also looked to pop-ups to tap the offline consumer across Japan: hosting 10 so far in 2023. The goal is to maintain a “constant dialogue” and offer a “seamless experience” for local consumers, Calò explains.
Japan accounts for 23 per cent of Marni’s total sales and “leads performances” in the APAC region, making it a “mature” but “significant” market for the brand, she adds. It’s why Marni saw value in staging a February runway in Tokyo with over 2,000 guests. (In comparison, Gucci’s latest show in Seoul had around 600, while Louis Vuitton counted about 1,500). The show helped “to bring Marni’s global vision closer to customers as well as the ever-growing community that supports and appreciates our product, codes and cultural values,” Calò explains.
Chanel’s show was similarly large in scale: welcoming over 1,000 guests in the afternoon, and roughly the same again in the evening. Most were local VICs (very important customers), while longtime ambassadors such as American actress Kristen Stewart (along with her screenwriter fianceé Dylan Meyer), French model, director and music producer Caroline de Maigret, and Japanese actress and model Nana Komatsu (who appeared in a teaser shared by the brand on social media days earlier), were also in attendance. Blackpink’s Jennie, who appears on the cover of this month’s Vogue Japan wearing Chanel, and Park Seo Joon caused the biggest commotion as guests crowded around the Korean stars to get a picture.
“Japan is a mature market in the sense that we have been here now for a long time, but it has always been a strong business for Chanel,” says Pavlovsky. “We have seen ups and downs, but in Japan, you see much more ups, [which is why] we have done many celebrations like shows and exhibitions.”
Other Asian regions will also get a taste: in April, Chanel hosted a VIP-only installation in Hong Kong showcasing designs from founder Gabrielle Chanel, the late Karl Lagerfeld and current creative director Virginie Viard. The brand plans to host a repeat Cruise show in Shenzhen in November (the collection was first shown in Los Angeles in May). “It’s time to reconnect with our local customers and teams,” Pavlovsky concludes.
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