The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
"Female Fashion Addicts Change China's Billion Market" (Bloomberg)
"While women have long dominated luxury shopping globally, they're just now catching up with men in China, who historically had greater purchasing power and accounted for most business- related gift giving. Companies from Chanel to LVMH Moet Hennessey Louis Vuitton SA are stepping up to meet demand from the country's new breed of female "fashion addicts," dedicating more floor space to women's wear amid a crackdown on expensive gifts such as watches."
"Catering to the Chinese Shopper's Grand Tour" (The New York Times)
"Storied European brands like Burberry, Hermès and Dior can be bought in high-end shops and shopping malls of major Chinese cities, of course. But for reasons including higher taxes in China and lower prices in Europe, Chinese consumers, who buy more luxury products than shoppers of any other nationality, prefer to do their buying abroad. Of the more than $80 billion in Chinese purchases of personal luxury goods last year, two-thirds were made outside China."
ADVERTISEMENT
"Shanghai Shoppers Leave New Yorkers in the Dust for Luxury Buys" (Jing Daily)
"New York may be a global center for luxury shopping, but it can’t compete with Shanghai, according to a new study by Milan-based digital marketing firm ContactLab. In the last 12 months, the firm’s survey of 975 shoppers in Shanghai and 922 in New York found that Shanghai residents spent an average of $1,000 on their last purchase—an amount twice that of New York’s $500. In addition, 91 percent are planning to do so again in the next six months compared to 77 percent in New York, with plans to spend 66 percent more than New Yorkers for the same purchase."
"Chen Man, the Chinese Princess of Fashion Photography" (i-D)
“‘Europeans watch Farewell My Concubine and come to China with all these romantic expectations,’ she says, ‘but when they arrive they’re met with skateboarders, break dancers, fashion photographers and a hip hop scene. I want to package this together and not only show it to China but show it to the world.’”
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.