Edouard.Aubin@morganstanley.comElena.Mariani@morganstanley.comKimberly.Greenberger@morganstanley.comLauren.Cassel@morganstanley.comIn-LineMORGANSTANLEY&CO.INTERNATIONALPLC+EdouardAubinEQUITYANALYST+44207425-3160ElenaMarianiEQUITYANALYST+39027633-5434MORGANSTANLEY&CO.LLCKimberlyCGreenbergerEQUITYANALYST+1212761-6284LaurenCasselEQUITYANALYST+1212761-4143BrandsEuropeIndustryView0.05.010.015.020.025.030.035.0201120122013201420152016201720182019ChanelLouisVuittonGucciDiorBurberryArmaniSaintLaurentHermèsPradaGivenchySearchtrendofsoftluxurybrandsonBaidu-thefirsttranche,2011-2019inthousands0246810121416201120122013201420152016201720182019CartierTiffanyBulgariVanCleef&ArpelsChaumetHarryWinstonChopardSearchtrendofjewellerybrandsonBaidu,2011-2019inthousands024681012201120122013201420152016201720182019LonginesOmegaTissotRolexVacheronConstantinMontblancPiagetJaegerPaneraiIWCBreguetAudemarsPiguetPatekPhilippeSearchtrendofwatchbrandsonBaidu,2011-2019inthousandsSource:BaiduIndex,MorganStanleyResearchBrandsBrands||EuropeEuropeWhat'shotinChinaonsocialmedia?Chinesenationalsareexpectedtoaccountfor>30%and>70%ofglobalsportinggoodsbrandsandEuropeanluxurygoodsbrands'salesgrowthoverthenext5-10years,respectively.SocialmediaismoreimportantinChinathaninanyothercountry.Weexplorehowbrandsarecurrentlytrendingthere.WeconductedoursocialmediaanalysisusingtheBaiduandWeiboindexes.Baiduispositivelycorrelatedtosearchtraffic(similartoGoogle).Weiboispositivelycorrelatedtopostingandreposting(similartoTwitter).Notethatthisreport'sfindingsprovideanindicationofeachbrand'sindividual''heat''butweacknowledgeitslimitations:WeChatdataisnotincluded(asthedatacannotbeaccessedforanalysis)andbrandheatcanbetemporarilydistortedbybrands'spendingonsocialmedia(e.g.spendingoncollaborationwithkeyopinionleaders)-ratherthanreflectinggenuinedesirability/interest.Threekeytakeways:1)largeluxurybrandscontinuetooutperform–counterintuitively,whileconsumersareincreasinglybettereducatedaboutbrands,thisisnotleadingtomarketfragmenta...
