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.
Chanel topped a survey of high-net worth consumers in China as their favourite luxury brand, according to luxury research firm, Agility Research and Strategy.
The Agility China Luxury Brand Affinity Rankings for 2021 tracked 55 brands across 12 performance and perception metrics, measuring not only how the 1,000 high-net worth Chinese consumers surveyed view the brands, but also the likelihood they will purchase products from these brands.
Chanel’s Agility Luxury Brand Affinity (ALBA) score of 99 spoke to its consistency across these metrics, as not only a highly desired brand among Chinese consumers, but also one high-net worth consumers are actively buying.
Dior came in second with an ALBA Score of 87, closely followed by Hermès with a score of 83. The latter’s brand stature and strength actually topped its competitors, but Hermès products were less likely to be actively gifted and purchased.
Fourth position was shared by Lancôme, Estée Lauder, and Gucci, all with an ALBA score of 77.
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.