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 country’s GDP beat expectations by rising 6.5 percent in fourth quarter of 2020, official data revealed Monday.
While major economies like the US and UK have yet to emerge from the throes of Covid-19, China’s economy — despite seeing a sharp decline during Q1 2020 — expanded 2.3 percent during the year, making it one of the only global markets to grow through the pandemic, according to the Financial Times.
Industrial production is the main driver of the rebound. China’s retail sector, though in much better form than those of other countries, is taking longer to recover. December retail sales failed to beat expectations, but analysts forecast a turn for the better this year, something both domestic and global brands will be anticipating.
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.