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 gross domestic product (GDP) increased 7.9 percent in the second quarter year-on-year, the National Bureau of Statistics said Thursday. That fell short of estimates of 8.1 percent growth for the period.
GDP in the second quarter rose 1.3 percent from the first quarter, which marks a faster rise than the 0.6 percent pace between this year’s first quarter and 2020′s fourth quarter.
In the first quarter, China’s GDP grew 18.3 percent, following a pandemic-induced contraction in Q1 2020.
Retail sales rose 12.1 percent in June from a year ago, more than the expected 11 percent level forecast by Reuters.
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There have been concerns about retail sales growth lagging behind that of China’s overall economy, having missed analysts’ expectations for the first two months of the second quarter.
Further Reading: Why Sourcing From China Just Got More Expensive
Surging demand and supply disruptions are driving up prices for raw materials, labour and shipping in fashion’s largest manufacturing hub.
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.