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.
In January and February, the total retail sales of consumer goods in China rose 33.8 percent year-on-year, according to data released today by the country’s National Bureau of Statistics (NBS).
The dramatic rise is largely due to the fact that retail spending was hindered during the same period in 2020, when the coronavirus outbreak first took hold in China, leading to widespread lockdowns, limitations on movement and the closure of public spaces, including malls and restaurants, in many parts of the country.
Having said this, the total sales for the two month period of almost 7 trillion yuan ($1.1 trillion) also represents growth of 6.4 percent over the same period in 2019.
Urban retail sales growth of 34.9 percent in the first two months of this year, compared with the same period last year, outpaced rural growth, which stood at 26.7 percent on the year.
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In a release from the NBS, the agency said that “upgraded consumer goods” experienced particularly fast growth. Online retail sales also continued their upward trajectory, growing 32.5 percent year-on-year for January and February.
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.