Fashion Week: To Win Over China, Come to New York

Designer Zheng Luo has 200-plus locations of her retail outlet, OmniaLuo--and they're all in China, where she is trying to become a household name to. But her company is listed acquired a Nasdaq listing in January (it currently trades over-the-counter) and this week, she's in New York for her first Bryant Park runway show.

Participating in fashion week "will help increase our brand awareness in China, which is our main focus," says C.F.O. Michelle Liu.

Luo is showing a playful, almost girly, spring collection late this afternoon. There's a gauzy pink dress inspired by cherry blossoms and a tunic that jingles golden bells. Luo says these designs combine Chinese and Western influences to appeal to international buyers. The tunic, for example, has broad shoulders to fit Western body types, but the bells are etched with traditional Chinese patterns. "Not too much Chinese," she says. "Not too traditional. It's modern, younger."

Since late 2007, OmniaLuo has made a particular push to increase its share of the "golden collar" market, which it identifies as a growing class of Chinese businesswomen who earn more than $25,000 a year. Traditionally, these customers have favored international brands, such as Louis Vuitton and Fendi.

"The moneyed at the moment will always opt for well-known luxury foreign brands that have more status," says Tony Bednall, director of Raffles Design Institute in Beijing. "The Chinese brands are not really breaking internationally or gaining strong recognition."

But OmniaLuo is trying to change that. Zheng Luo says she hopes to open a store in New York City in 2009 and is talking with partners about expanding into the Middle East and Russia. But the company is also trying to keep sight of its mainstream customers--the bulk of China's $25 billion women's apparel market.

OmniaLuo's growth so far is promising: revenues increased fivefold from 2006 to 2007. And figures for the first half of 2008 jumped another 2.5 times compared to the same period in 2007. But overall sales totaled only $7.9 million last year, versus, say, nearly $100 million for Donna Karan International. OmniaLuo's stock price hasn't closed above $2 since its January listing and has languished at $1.30 in recent weeks.

Luo denies that an economic downturn is setting in. "China has a lot of potential to grow," she says. "The future is great."

Bednall is more cautious in his outlook. "There are a lot of talented designers in China," he says. "But there will be one designer who breaks out and gets true, global recognition."

"Who knows," he adds. "Maybe it will be OmniaLuo."

by Mary Bridges

Image: courtesy OmniaLuo

More on Fashion Week from Portfolio.com:
Gods of the Garment Center
Varvatos' Rock and Retail
Fashion Week Exclusive: W Goes G.L.A.M.B
Vera Wang Pre-Shop
S'Not Apple
Mac and Say Cheese at Doucette Duvall
Patrick Rises on a Green Tide
Fashion Week Exclusive: Bergdorf's May Get "Posh"
Slow Payments Pinching Small Designers
All Fur Naught
The Offstage Pass
Banking on Buys
Where's Fashion Going? GPS Knows.
Does Colette Bridge the Gap?
How to Freak People Out at Fashion Week
Bleak Chic