Asian consumers are the world's biggest spenders on high-end fashion, representing around half of total buyers.
Most of them are under 35, Internet-savvy and increasingly on the hunt for small, cool, original brands that will make them stand out and look different from their parents, fashion executives and retailers say.
High quality is no longer the preserve of Western luxury brands, fashion experts say, and Asian brands are attracting attention as they experiment with new textiles and materials, facilitated by their local manufacturing base.
This growing threat from the east is likely to add misery to big luxury brands such as Prada (1913.HK), Kering's Bottega Veneta (PRTP.PA) and Tod's (TOD.MI), already suffering from plunging sales, partly due to excessive price increases, over-exposure in certain markets such as China and mega-brand fatigue.
Chinese fashion brands, such as Ms Min and Comme moi, are the fastest-growing contemporary design labels sold at department store Lane Crawford, which has outlets throughout China and Hong Kong, its Chairman Andrew Keith told Reuters. Lane Crawford also sells Korean menswear brands such as Woo Young Mi and expects to start selling Korean womenswear soon.
"You sense there is a pride about seeing China develop its own creative community and seeing China emerge as a creative force," Keith said in an interview on the fringes of the Conde Nast luxury conference in Seoul.
Lane Crawford has seen its pool of Chinese labels grow over the past four years to more than 30, from just four. Twenty percent of Chinese-designed clothes bought online are shipped outside of China "mainly to Chinese nationals living abroad who want access to these brands," Keith said.
He estimates that his average customer in mainland China is 25 while in Hong Kong the average age is 35-40.
Also high on Asians' shopping list are Japanese brands, such as Sacai and Tsumori Chisato, many of them older and better established than South Korean or Chinese labels. Lady Gaga regularly wears Japan's Roggykei, created in 2006 by two graduates from Osaka College of Design.
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Korean cosmetics have long been popular with Chinese customers and Rambourg notes that popular South Korean television series such as "My Love from the Star" and "Descendents of the Sun", and Korean pop music acts such as Big Bang and Girls' Generation, have helped boost South Korea's image as a trend-setter throughout Asia.
While Asian consumers have embraced American culture, Korean pop culture is closer to Chinese culture, says Rambourg.
"Koreans' self-esteem and self-confidence has been boosted by the power of 'K culture' and this is also why Korean and other Asian brands have started to become more popular," said Sung-Joo Kim, one of Korea's most high-profile female entrepreneurs. She owns and runs German luxury leather goods brand MCM, known for its $700 studded logo-embossed canvas backpacks.
Kim, who previously developed Gucci's Korean business, also pointed out that Asian brands cater better to Asian women's more petite shape than Western brands.
"Can we make 'made in Asia, designed in Asia' become cool, I think yes we can because the stigma that Asian brands had is disappearing and we have all the right ingredients and the manufacturing base," said Joowon Park, director at Seoul-based Simone Fashion Company. It manufactures for Western brands including Coach, Michael Kors and Kate Spade. Asian brands are also attracting interest from Western buyers.
Awaiting a flight back to Paris at Seoul airport, Maximilien, 39, who works in fashion advertising, bought a $400 studded bag for his wife from Korean brand Youk Shim Won, with a girl in funky sunglasses painted on one side.
"This is so original, don't you think?" he said.
(Editing by Susan Fenton)
http://www.reuters.com/article/us-fashion-asia-idUSKCN0XN1QZ
