Many stylish brands throughout the world have come to China in an effort to really make their brand known by the people. Armani, an Italian fashion brand, is branching out in China, offering something that many people are surprised by. The brand is partnering with a property realtor in China, in order to build homes that are considered stylish residences.
The two companies are working together to develop the Smart Hero-Central Park Plaza residences that will offer not only residential units, but shops on the ground floor, high-end offices, a mall that will be placed underground and other independent office buildings throughout the area. This is going to be located in Beijing’s Central Business District, and should be completed by 2017.
Armani designs the residential apartments and common units, while the property company works with the rest of the design plans. What comes as a surprise to many is that Armani is branching into this direction. However, this is not the first time. The Armani Art Residents is a project located in Chengdu that is set to be completed by 2016 that is showcasing the luxury taste of Armani in the two building project.
Read more about luxury goods in China with China Consumers: The Largest Consumer of Vanity Products
Huang Shuxiong, a partner of Deloitte China, stated:
“Luxury brands expanding to other areas besides fashion have become increasingly common.”
Why is this change taking place? Huang went onto state:
“The luxury goods market recorded its first contraction last year…luxury goods markers made a wise move by diversifying their business to reduce risks and increase revenues.”
In addition to the funds they have seen lost, many of the luxury goods companies are being hit hard by the corruption laws that have been put into place. No longer are government representatives and agencies able to purchase such high end goods for the government to pay the bill. This has greatly affected just how much goods luxury brands are selling. Overall, Armani is playing this smart, as they are expanding what all their brand has to offer to China.