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.
Global demand for Chinese-made apparel surged in the first four months of the year, reaching $44.41 billion, according to data from the country’s General Administration of Customs, representing a year-on-year rise of 51.7 percent.
From January to April, China’s exports of textile yarns, fabrics and related products totalled over $43.96 billion, up by 18 percent year-on-year.
As major western consumer economies emerge from the pandemic ready to spend on fashion and related categories, China’s supply chain is playing a key role in bringing those products to market. But this surge in demand, coupled with raw material price rises and logistical bottlenecks, is making it difficult for players across that chain to keep prices in check.
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.