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.
Chinese consumption took a hit last month as Covid-19 curbs began to bite, with retail sales declining for the first time in two years.
In a data dump Monday, China’s National Bureau of Statistics (NBS) said the country’s gross domestic product (GDP) expanded by 4.8 percent, beating analysts polled by Reuters, who had expected a gain of 4.4 percent.
Data for March showed retail sales contracting the most on an annual basis since April 2020, falling 3.5 percent year-on-year, worse than expectations for a 1.6 percent decrease and coming off an increase of 6.7 percent for the months of January and February combined (data for January and February are often bundled together in China because the period coincides with the Lunar New Year holidays).
“We will step up the implementation of macro policies, make every effort to stabilise the economic fundamentals, and strive to achieve the targets and tasks for the year,” NBS spokesperson Fu Linghui told a press conference.
Learn more:
China’s Booming Luxury Market Won’t Be Smooth Sailing in 2022
As repatriation of luxury spend continues in 2022, domestic sales in China are expected to surpass 2019 levels by 90 to 110 percent, but that doesn’t mean brands can rest on their laurels amid economic headwinds and government crackdowns.
International buyers and talent scouts must cast their nets wider than the usual fashion week incubators, prizes and schools to find the country’s next crop of emerging brands.
Chinese celebrities made a comeback at the European shows this season, but the brands hosting them see the country’s A-listers as more high-risk, high-reward than ever amid fresh scandals and tightening government regulation.
Owners of international brands like Lanvin and Carven faced challenges in their home market under ‘zero-Covid’ rules but China’s economic recovery is now on the horizon.
Critics say they are dystopian, but ‘flawless’ virtual influencers may be worth considering in a market where celebrity brand ambassadors have become an increasingly risky investment.