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 second-largest e-commerce player continues to benefit as shoppers move online in the world’s biggest market for fashion and luxury. Its sales for the quarter ended September 30 reached 174.21 billion yuan ($26.5 billion), beating analysts' expectations of 170.5 billion yuan. The company’s stock has more than doubled in 2020.
Following lockdowns at the start of the year, the acceleration and repatriation of local spending, coupled with growth in lower-tier cities, has driven a shift to online spending. JD.com’s paid membership programme, JD Plus, is also gaining ground: the service, which encompasses exclusive promotions, savings on shipping and exclusive customer service, now reaches more than 20 million users.
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.