At a time when slowing economic growth in China and a government mandated anti-graft campaign have slowed sales at many luxury retailers, Lane Crawford’s Pedder Group, which focuses on footwear, bags and accessories, says its customers are paying closer attention to the “point of difference.”
Customers do hold back a bit on spending during uncertain economic times, but they also tend to look for more unique offerings for when they do buy.
“Having gone through two financial crises, often your first thought is to notch the buy down but it’s often the point of difference, very special things, that resonate with the customer. People think ‘if I’m going to spend then I want it to be special,'” said Peter Harris, president of the Pedder Group. The Pedder Group is part of The Lane Crawford Joyce Group.
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In a bid to offer some unique offerings to its customers, Lane Crawford and Pedder have just launched a curated collection of handcrafted products including shoes, handbags, accessories to furniture from around the world. Called “Krafted I,” the collection features high-quality items from niche brands. The lineup includes products from Alberto Fasciani, an Italian designer known for making quality footwear made of crocodile, calf, cordovan or buffalo; items from The Gem Palace from Jaipur, India, a high-end Indian jewelry house; furniture designed by architect Yabu Pushelberg; and rugs from Omar Khan Home, a design firm based in Kuala Lumpur, Malaysia.
Prices range from sandals for 4,000 Hong Kong dollars, or $516, a cashmere blanket for 50,000 Hong Kong dollars, or $6451, to a specially commissioned silk carpet for 250,000 Hong Kong dollars, or $32,255.
“For some of these items we went off the usual path,” said Kim Kollar, director of Lane Crawford footwear and accessories. She went not just to Europe or New York to source the items but to India as well.
“Hong Kong is a very branded retail landscape. This is probably the first time we’ve presented something a little more obscure than they are perhaps used to. But we absolutely feel that our customer understands quality and wants something that everyone does not have,” said Harris.
Harris noted that Lane Crawford and Pedder Group have also seen success with its limited edition programs – exclusive styles, materials and colors – that have struck a chord with Chinese customers.
The special collection of handcrafted items rolled out last week in Lane Crawford’s IFC store. It will be in the Beijing and Shanghai stores in early September and go on for four weeks. The items are being launched through Blitz, a concept within Lane Crawford footwear and accessories that incubates new retail ideas for designers and customers. A second collection is planned for the spring-summer season.
Notably, the handcrafted items will not be rolling out in Lane Crawford’s newest store in Chengdu, China, which is a relatively new market and less mature than Shanghai or Beijing, where customers are probably “a little bit jaded,” noted Harris.
Accompanying the collection, Lane Crawford will also be holding some informational workshops in China to give customers more background about the products. In addition, Kollar will go on a roadshow to present the products to customers. The workshops and close customer interaction will provide helpful feedback from customers.
“Our staff have a very intimate relationship with their customer base and during challenging moments in the market one of the strengths is the ability that your front line people have to communicate with the customer,” said Harris.
Meanwhile, Harris downplayed the impact of the ongoing luxury spending slowdown in China.
“Our business sits in a fairly unique place. A lot of the issues in China in terms of luxury slowdown is to do with watches, pens, men’s categories, things associated with gift giving in China. Our product is very much personal use and it’s seasonal,” he explained, although he declined to give sales figures. “Where there may be pullbacks in other areas, the core of our business – footwear – is still very relevant.”