First lady style spruces up local labels

Source:Agencies Published: 2013-3-26 22:38:01

After Peng Liyuan, the wife of Chinese President Xi Jinping, appeared in Russia Friday wearing tasteful Chinese-branded attire and accessories, there has been a surge of interest in China's homegrown clothing companies.

Indeed, Monday saw shares of mainland-listed clothing makers tack on an average of 0.5 percent even though most A-shares ended up with losses that day.

What we're seeing is probably not just short-term speculation. History has shown that being worn by royalty or a first lady can bring more value to a clothing or jewelry brand than a celebrity endorsement.

According to research by David Yermack, a financial professor at New York University, 29 clothing companies have seen their share prices increase steadily ever since their products were donned by US first lady Michelle Obama.

China's up-market clothing labels should capitalize on the publicity the country's first lady has brought them. They should take this opportunity to improve their designs and their quality in order to establish stronger footings both at home and abroad.

The author is Feng Tao, a media personality.



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