Wrigley Launches New Non-Gum Brand in Russia

Posted by Barry Silverstein

Wrigley is the world's leading chewing gum maker. Its Orbit brand is number five on Euromonitor's list of top-selling candies and gums in 25 countries. But in Russia, Orbit is number one,  according to BusinessWeek. So Wrigley, purchased by Mars in 2008, is making a play for a bigger share of the Russian market.

For Russians, Wrigley is introducing new Orbit flavors, but it is also taking somewhat of a brand risk. BusinessWeek reports that the company has just begun marketing "individually wrapped snacks that look like baked flat breads or crackers and come in a variety of flavors." Erwin Hinteregger, Wrigley's director of emerging business territories, said the "croutons" were developed by the company's Russian unit to fit the country's unique snack demands, and it's unlikely that the product will be marketed elsewhere.

Croutons from Wrigley? What's next, chocolates? Wrigley acquired chocolate-maker A. Korkunov in 2007, and now sells them in Russia.

Does this mark the beginning of a strategy to develop country-specific brands that move away from Wrigley's gum brands? Very possibly. Hinteregger confirms that Wrigley's China unit, with an eye on its Russian counterpart, is now working on new products for that market.

Hermes launches new brand in China – Shang Xia

French fashion label Hermes on Thursday opened its first boutique for its new brand Shang Xia – a bold strategy that highlights China’s growing importance to luxury goods companies.
“We are very moved — this is like the birth of a child,” Hermes chief executive Patrick Thomas said ahead of the inauguration of the shop in a high-end shopping mall in Shanghai, China’s most cosmopolitan city.
The store, a picture of minimalist chic, offers clothing, home furnishings, shoes and tableware — a collection inspired by tea, and made from traditional Asian materials such as bamboo, cashmere and porcelain.
In front of the store, artisans put their skills on display for the widely anticipated opening, making tea cups enveloped in an intricate web of woven bamboo.
Shang Xia, whose name means “Up Down” in Mandarin, aims to boost what Thomas told AFP last month was “very strong growth” in mainland China, Hong Kong, Macau and Taiwan — collectively now the company’s “principal market.”
“The idea is to bring the Hermes philosophy to China, to create a Chinese Hermes,” Thomas told AFP

Levi’s Launching New Brand for China

Set to launch this summer, iconic denim experts Levi’s have created a new brand aimed at the Chinese market. The initial plan is to expand the number of stores in China from 20 to a whopping 1,000 by 2015. It is rumoured that pricing will fall slightly under that which one would expect from Levi’s, with jeans retailing at around $50. For more info check this article from WWD:

Classic Americana purveyor Levi Strauss & Co. is heralding the arrival of the young mainstream Chinese consumer by launching a new brand this summer in China — its first unveiled on foreign soil.

Befitting the new label’s vast home turf, the San Francisco-based denim company has ambitious plans to grow the line’s store base in China to 1,000 by 2015 from 20 this year. Levi Strauss wouldn’t disclose the name of the brand, which is likely to be priced slightly below traditional Levi’s and is being called Standard internally, but revealed it would be in English and make its Levi’s pedigree apparent.

“Although we are focused on China, our hope is that this brand will become one of our big brands,” said Tod Gimbel, senior director of corporate affairs at Levi Strauss’ Asia-Pacific division.

The denim giant joins Hermès International in the push to develop a brand for China. The luxury firm has taken a majority stake in Shanghai-based Shang Xia, which is creating, manufacturing and will sell a collection of clothing, accessories, furniture and other lifestyle products using Chinese raw materials and artisanal know-how. The first Shang Xia store is to open this year in Shanghai.

Levi Strauss’ goal is to develop the new brand’s store base with an even balance of franchised units and company-owned units. The stores are expected to average about 1,000 square feet, which is similar in size to existing Levi’s stores in China. Shop-in-shops within department stores will showcase the brand, as well.

Like Levi’s other stores in China, the new brand’s shops will offer a “top-to-bottom experience,” Gimbel said, with an array of merchandise for men and women. The denim will feature Levi’s signature five-pocket design, but will have a “distinct style and flair,” he said. “There will still be that Levi Strauss & Co. authentic denim craftsmanship, but it will have its unique identity.”

Levi Strauss has been among the most successful American apparel brands in China, though it had a rocky beginning in the country. In 1993, the company halted manufacturing in China because of human rights concerns. Production resumed five years later and Levi’s stores launched about 10 years ago. Now, Levi’s has 620 branded retail locations in mainland China and boasts a considerable presence in the nation’s major bustling retail districts.