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’s Taikoo Hui mall saw retail sales jump 171 percent year-on-year and rental occupancy at 97 percent in the first quarter of 2021, with a similar sales increase of 169.6 percent year-on-year recorded by Guangzhou’s Taikoo Hui mall, which boasts rental occupancy of 100 percent, according to a first quarter operating statement released by Swire Properties.
Sino-Ocean Taikoo Li in Chengdu saw first quarter sales rise 122.7 percent on the year and sales at Taikoo Li in Beijing’s Sanlitun district were up 113 percent year-on-year, with that property also reaching 100 percent rental occupancy this quarter.
Though these sales jumps speak to the strength of China’s luxury market in major cities, they also come off the relatively low base of 2020′s first quarter, in which China battled the worst of its Covid-19 outbreak and luxury malls were largely devoid of their regular footfall for a significant period as customers stayed home.
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.