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 combined operating revenue of major Chinese garment enterprises expanded 13.4 percent year-on-year to 407.8 billion yuan ($63.86 billion) over the January to April period, according to the country’s Ministry of Industry and Information Technology.
Meanwhile, total profits of 12,444 major garment firms surveyed jumped 37.9 percent from a year ago to 18 billion yuan ($2.81 billion) and the companies saw their combined output rise 23.87 percent from a year ago to over 7.05 billion pieces.
The ministry’s latest statistics show China’s online retail sales of clothing products rose 33.8 percent year-on-year in the first four months, while the country’s garment exports soared 51.7 percent year-on-year to $44.4 billion, in spite of precipitous price rises impacting fashion companies sourcing from China over the same period.
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.