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.
Shanghai and its surrounding areas have been spared the worst of Typhoon Chanthu, which was due to make landfall Tuesday, but remained off the coast, 225 kilometres to the city’s east.
The typhoon brought high winds and rain to the country’s economic capital and its surrounding regions, but did not directly hit the Chinese mainland with full force as had been predicted.
On Monday, in response to the extreme weather, Shanghai’s government suspended schools, trains and planes and many employees were encouraged to work from home. By Tuesday evening, many transport links were re-opened and students were told they could return to school the following day.
Learn more:
ADVERTISEMENT
How Concerned Should Fashion Be About Chinese Stagflation?
China’s producer price inflation has been impacting the cost of sourcing. Now, fashion brands are also bracing for broader economic pressures that may lead consumers to tighten their belts.
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.