Observing the "runway effect" in global markets

Dior Tokyo Pre-fall 2015. Photo: Courtesy Dior
However disappointing Abenomics is for Japan's growth prospect, Tokyo is readily happy to host Christian Dior's pre-fall 2015 collection a sumo wrestling arena, which was transformed into a stunning runway on 11th, December. This is just the replayed scenario of Shanghai several years ago, where Chanel held its M├ętiers d'Art Show in 2009 and Dior's resort collection in 2011. It followed that the Chinese topped global luxury consumption in 2012 and 2013. Would the same thing happen for Japan?  I think so, because a reasonable Runway Effect works in the world of business.

 A successful fashion designer identifies the future trend several seasons ahead to have their spring-summer collection presented on the previous year's September fashion week, so do their bosses, who normally have already planned the business for the next five years or more. From 2008 to 2012, China's miraculous economic growth and inflow of capital, driven by Beijing's discretionary expansion, ignited middle-class Chinese's passion for luxury goods. By offering seasonal collections tailored to the Chinese aesthetic, brands earn. Most importantly, they have to launch their collections earlier than leading economic indicators ever show market optimism. Or they fall behind. Abenomics, though not showing strong signs of recovery, is such a policy package that indeed does the right thing (re-evaluating Yen's rate, structural reforms, better workplace welfare for women, anti-deflation, etc.) and it has much potential to successfully boost Japan's economy. There's no risk for Dior and Raf Simons to have shows in Tokyo anyway, yet this cultural tour may serve to please their prospective consumers. The same bet was made by Chanel in Salzburg and Valentino in New York at this moment, taken into account ECB's potential monetary stimulus and America's strong economic recovery. Sometimes, the runway is also a leading economic indicator, and perhaps the most stylish one.


This entry was posted on Wednesday, 17 December 2014 and is filed under ,,,,,,,. You can follow any responses to this entry through the RSS 2.0. You can leave a response.

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