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.
"Regional Variations of the Urge to Splurge in China" (Bloomberg Businessweek)
“Broadly speaking, shoppers in China’s less developed central and southwestern regions tend to be more pragmatic and price-conscious, even those with extra cash to spend on luxury goods. Meanwhile, those in northern and eastern China, who often have longer exposure to brands, are more sensitive to what the study calls ‘emotional influences,’ including brand loyalty, product packaging, and advertising campaigns.”
"China's Online Retailers Eye Global Markets" (The Wall Street Journal)
“Chinese Internet retailers serve what has become the world's biggest e-commerce market. Their next target: the U.S., and the rest of the world. Jingdong Corp., a leading Chinese Internet retailer by sales, has logged millions of yuan in sales on its English-language site in the past year, despite almost no advertising, according to the firm. AliExpress, which Alibaba Group launched in 2010 as its overseas platform, is growing rapidly in emerging markets, reaching 700,000 registered users in Russia alone. Chinese firms are attracted to overseas markets partly because of ferocious competition at home.”
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"Furla Weaves China Dream Amid Affordable Luxury Boom" (South China Morning Post)
“Although China's luxury market has been reeling from cooling economic growth and the anti-corruption drive, the country continues to be one of the world's strongest consumers of branded products. Furla reported earnings of €212 million (HK$2.2 billion) last year, with 76 per cent of its turnover from outside Italy. The Bologna-based firm, which has lower brand recognition in China compared with the top luxury Italian retailers, may have benefited from the shift of emphasis away from logos.”
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.