Business
Luxury shoemaker Manolo Blahnik enters China market after 22-year legal tussle
Global Banking & Finance Review®
Company
By Casey Hall
SHANGHAI (Reuters) – Manolo Blahnik, the high-end shoe brand with many celebrity fans and often worn in the TV hit “Sex and the City”, has opened its first store in mainland China after a 22-year battle over the legal right to use its name.
In addition to the new boutique in Shanghai’s Plaza 66 luxury mall, the company expects to open a store a year in China for the next five years, with Beijing and Chengdu the next likely locations.
The shoemaker, named after its Spanish founder, had been limited in its ability to trade under its name in China after a local businessman filed trademarks related to “Manolo Blahnik” in 1999.
China is a “first to file” jurisdiction which doesn’t require companies to prove prior use to claim a trademark, but a ruling two years ago from the Supreme People’s Court of China found in favour of the company.
“We were very, very grateful to reclaim our trademark. Before that point, we were just focused on getting it back. (Since then) we very much turned our head towards Asia,” Chief Executive Kristina Blahnik, who is the founder’s niece, said in an interview.
The brand also opened two new stores in Hong Kong in October.
Its long-awaited mainland China debut comes as high-end brands such as LVMH have seen sales slide in the world’s second-largest luxury market, hurt by tepid economic growth and weak consumer confidence. But Blahnik said she was unconcerned as the company is just getting started in China.
China’s luxury footwear market is valued at about $5 billion this year and is projected to grow 7.6% a year through 2029, according to research firm Statista. Manolo Blahnik will compete with foreign brands such as Jimmy Choo and Christian Louboutin, which have the advantage of having been in China for more than a decade.
(Reporting by Casey Hall; Editing by Edwina Gibbs)
A trademark is a recognizable sign, design, or expression that identifies products or services of a particular source from those of others. It helps protect brand identity and prevents confusion among consumers.
The luxury market refers to the sector of the economy that sells high-end goods and services, typically characterized by premium pricing and exclusivity. It often includes fashion, jewelry, and luxury automobiles.
Consumer perception is the way consumers view and interpret a brand or product based on their experiences, beliefs, and marketing messages. It significantly influences purchasing decisions and brand loyalty.
Market growth refers to the increase in demand for a product or service over time, often measured by sales volume or revenue. It indicates the potential for expansion and profitability in a specific market.
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