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.
The Chinese tech and retail giant’s logistics arm Cainiao plans to launch direct freight flights between Singapore and Hainan Island to shuttle duty free beauty products, handbags and watches to the mainland, general manager James Zhao told Bloomberg.
Analysts forecast a slow return to global travel and with $53.5 billion in luxury spending happening in China last year alone, according to Bain & Co. estimates, brands and retailers are working harder than ever to bring their global offerings to the market.
Cainiao will run seven return flights per week between the islands and is also looking to launch freight routes between Hainan and other destinations popular with Chinese tourists, such as Japan and South Korea. Zhao added that flights to Europe will also be considered in the future.
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.