What’s Up ? Alina BLAGAAdélia CHAIEBLinda VO Darris DABOUZ

“Average Chinese Tourist Spending is Declining”

From the jingdaily website

SUMMARY & CAUSES► Chinese tourists remain big spenders all over the world

the trend points in the opposite direction► UK, Hong Kong, Singapore, and Japan saw the average

expenditure for Chinese tourists decline in 2016.

► Chinese government officially sanctioned outbound tourism: international travel has exploded in growth.

► Difficulty for China’s rising middle class to venture on vacations abroad: Stringent visa rules in most destinations high costs few direct international flights from cities other than China’s more affluent first-tier cities

► The Chinese yuan has declined against the Hong Kong dollar for years leisure travel and daigou shopping in Hong Kong less attractive

CONSEQUENCES & CONCLUSION►In Japan, the kind of buying products has changed.►In the UK, this represents a period of lower spending among Chinese tourists.

Declining average spending among Chinese tourists shouldn’t be a red flag to the tourism industry.

Many factors could cause this decline: Tightening regulations on capital flight A potential trade war with the United States under Trump’s

leadership A weakening Chinese yuan

“Britain’s consumer boom shows signs of petering out”

From the economist website

► For the past seven months the British economy has defied the predictions of many analysts: GDP grew by 2% in 2016, faster than in any other G7 country Q4-2016, the volume of retail sales, excluding petrol, was 6% higher than in the year before, the biggest rise since

2004.

However, The spending spree that has kept the economy going since Brexit may be nearing its end.

SUMMARY & CAUSES

► After the financial crisis of ‘08-’09, people lost their jobs and real wages fell. ► But retail spending picked up from 2014:

Decrease of unemployment Faster earnings growth.

► In 2011-13 real disposable household income shrank on average by 2% a year. But in 2014-16, it grew by 3% a year.

► After the Brexit, households continued unsecured borrowing, thanks in part to the Bank of England’s looser monetary policy.

With Brexit negotiations about to get under way and the attendant economic uncertainty, people decided they should focus less on borrowing and more on repaying.

CONSEQUENCES & CONCLUSION► On January 31st the Bank of England revealed a fall of the consumer-credit.► Credit Suisse, the bank, reckons that consumer-spending growth will drop

from 2.8% last year to 0.7% in 2017.► Rising prices will also cramp consumer spending. Inflation may near 3% by

the end of the year.

The government is tightening austerity this year, deleting demand.

Investment is weak Despite the drop of the value of sterling since June, exports are

hardly booming. If the consumer-spending spree comes to an end too, it is hard to see where

economic growth will come from.

“Etihad builds bespoke loyalty program around fashion industry’s

demands”From the luxurydaily website

SUMMARY & CAUSES► Etihad Airways is catering to the fashion industry with a new rewards program named "Runway to Runway." 

perks such as discounted cargo rates and group travel rates, ideal for sending an entire team on location for a photo shoot.

► Etihad began positioning itself as the airline choice for Fashion

► Etihad linked with IMG in April and today supports 17 of its fashion events per year, including fashion weeks in New York, London and Milan.

► As part of its work with fashion, Etihad collaborated with British footwear label Jimmy Choo:

• To celebrate the label’s 20th anniversary, Etihad co-hosted a Jimmy Choo-themed VIP lounge at runway show venue Skylight at Moynihan Station and decked out a livery with Jimmy Choo and NYFW branding.

CONSEQUENCES & CONCLUSION►Raising awareness thanks to the stylish community at fashion week ►Etihad’s loyalty program open to all fashion enthusiasts such as designers,

fashion editors, models, photographers, stylists, bloggers and executives with various levels (gold, silver…)

"Etihad Airways' commitment to fashion has taken another step forward with the launch of Runway to Runway.

Patrick Pierce, vice president of sponsorships said:"Last year, Etihad Airways became the first global airline to align with and

support fashion professionals,"

"Very few industries travel as much as the fashion industry does, spending tens of millions annually.”

“Ferragamo undeterred by US import tax proposal”

From the mcclatchydc website

SUMMARY & CAUSES► The new CEO Eraldo Poletto said that the prospect of a possible

new tax on imports into the United States won't deter his growth strategy in the brand's single most important market.

► Any tax on imports could be balanced by other factors, including currency fluctuations.

► Priority on the brand's core shoe and leather goods businesses, with a focus on women's footwear and handbags, also in the United States (men's footwear is already performing well)

► Investment in the creation of a new must-have handbag

► "We are now under-penetrated in leather goods. We are not very happy about that," Poletto said. "We are fixing that very rapidly.“

CONSEQUENCES & CONCLUSION►Ferragamo won't consider moving production to the United States (1/4 of its

revenues).► Poletto said Ferragamo's "Made in Italy" craftsmanship credential is integral to the

brand.►It intends to pursue its strategy focused on Made in Italy while counting on a natural

balance of the world economy.

The storied brand was launched by Salvatore Ferragamo in California as the Hollywood Bootshop in 1923, making shoes for the film industry. He later returned to Italy to build the brand based on Italian craftsmanship.

“He came back to Italy because he knew that only in Italy he would find the quality he was dreaming of to deliver with his shoes.”

“Google and H&M's personalized 'Data Dress‘”

From the fashionnetwork website

SUMMARY & CAUSES► Google has teamed up with Ivyrevel, a fashion house

backed by H&M Group, to create "data dresses" that are customized to fit an individual's daily activities and lifestyle choices.

► The dress designs will be based on data collected by an Android smartphone app over the course of one week.

►The app uses "awareness" tools created by Google to gather data on a user's location, physical activity, and the weather when they're outside. The information is then passed through an algorithm that

designs a custom dress.

CONSEQUENCES & CONCLUSION► Using the personal data from the app, Ivyrevel will create a custom "data dress" for $99.► The Data Dress, enables women around the world to order a dress made entirely for them”, said

Aleksandar Subosic, co-founder of Ivyrevel.► the app is now being tested by handful of style “influencers”, including  Ivyrevel’s co-

founder Kenza Zouiten , who will receive their dresses next month. The general public will have a chance to download the app later this year.

WEBOGRAPHYJing Daily - Average Chinese Tourist Spending is Declining, But it’s not all bad news – February 3, 2017 – by Daniel Meesakhttps://jingdaily.com/average-chinese-tourist-spending-is-declining-but-its-not-all-bad-news/

The Economist - Britain’s consumer boom shows signs of petering out – February 4, 2017 http://www.economist.com/news/britain/21715999-spending-spree-has-kept-economy-going-brexit-may-be-nearing-its-end-britains

Luxury Daily - Etihad builds bespoke loyalty program around fashion industry’s demands – February 8, 2017 – by Staff reportshttps://www.luxurydaily.com/etihad-builds-bespoke-loyalty-program-around-fashion-industrys-demands/

McClatchy - Ferragamo undeterred by US import tax proposal – February 3, 2017 – by Colleen Barryhttp://www.mcclatchydc.com/news/politics-government/national-politics/article130545144.html

Fashion NetWork  - Google and H&M’s personalized “Data Dress” is taking shape - February 6, 2017 - by Susan Spies http://us.fashionnetwork.com/news/Google-and-H-M-s-personalized-Data-Dress-is-taking-shape,789666.html#.WJsu6W_hDDc

CNN Tech - Google is using data to help design the perfect dress - February 7, 2017 - by Ivana Kottasovahttp://money.cnn.com/2017/02/07/technology/google-hm-coded-dress/

THANK YOU!