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.
"Building Vogue China" (The Business of Fashion)
"At launch, Vogue China stepped into a media landscape already crowded with fashion magazines. But since then, it has taken a leadership role in educating and informing consumers and expanding demand for luxury goods through close collaborations with international brands clamouring for the attention of an ascendant Chinese luxury consumer."
"China's Addiction to Luxury Goods" (The Economist)
"The post-2008 years have not been the easiest for luxury brands, but China's apparently unquenchable thirst for all things bling has made up for the slowing down of European consumption. By some estimates, half of the world's luxury spending will come from Chinese wallets by next year."
"Brands Need To Keep Up With Changes In China's Luxury Consumption Patterns" (South China Morning Post)
"With profound recent socio-economic changes and the rise of a new elite, the face of luxury consumption is changing. About half of luxury consumers are affluent households that recently acquired their wealth and spend between 12 per cent and 20 per cent of their income – or between 20,000 yuan (HK$25,200) and 60,000 yuan a year – on luxury goods, a recent McKinsey report showed."
"Neiman Ex-Partner Sees Promise in Chinese Discount Luxury" (The Wall Street Journal)
"Neiman Marcus may be giving up on its China-focused partnership with Glamour Sales Holding Ltd., but the Hong Kong company sees a future in its offerings where the Dallas-based luxury retailer apparently didn't. Glamour Sales, which holds so-called flash sales that give consumers a short window buy discounted products, will focus on expanding in Chinese cities and zeroing in on mobile phones as a way to pursue growth…"
"Yuan Yafei, Sanpower Chairman – 'Only Strange People Can Succeed'" (The Financial Times)
"Mr Yuan is chairman of Sanpower, a little-known Nanjing conglomerate that has snapped up 89 per cent of the UK chain in the biggest Chinese foreign retail deal in history. Sitting in front of an enormous Chinese screen painting, the chain-smoking entrepreneur says he first heard of House of Fraser five months ago when a banker told him that it was on the block."
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.