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.
China’s retail sales grew at a slower-than-expected 17.7 percent year-on-year in April, according to figures released by the country’s National Bureau of Statistics (NBS).
In March, retail sales rose 34.2 percent on the year and analysts polled by Reuters had expected growth of 24.9 percent for April.
Online sales of consumer goods rose 23.1 percent during the first four months of the year from a year ago, a slower pace than the 25.8 percent year-on-year growth rate of the first three months of the year. The bureau did not release figures for individual months.
In a quarterly monetary policy report released last week, the People’s Bank of China flagged the country’s constrained consumer spending as an indication that the foundation of China’s economic recovery isn’t yet solid, a point the NBS reiterated in its release on Monday.
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.