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.
From January to May, official government data shows the combined operating revenue of 12,451 major enterprises in China’s garment sector reached 525.1 billion yuan ($81.1 billion), up 13.29 percent from the same period last year, according to the Ministry of Industry and Information Technology (MIIT).
These enterprises raked in total profits of 23.5 billion yuan ($3.63 billion) in the period, jumping 27.87 percent year on year, MIIT data shows.
The latest statistics also show that China’s online retail sales of clothing products climbed 28.2 percent year on year in the first five months, while the country’s exports of garment and accessories surged 48.3 percent year on year to $56.6 billion.
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.