28 October 2024

China: not all bad news for luxury brands

Image shows a newly opened Hermès store in Shenzhen, the brand’s largest in southern China.

Analysts from Boston Consulting Group (BCG) have said 2024 is proving to be a problematic year for luxury brands in China, but have insisted that not all the news is negative from the point of view of high-end products. By Leatherbiz.


Milan-based senior partner Filippo Bianchi, who focuses on the luxury sector, has told business newspaper Il Sole 24 Ore that BCG is expecting a double-digit decline for the industry in China this year compared to 2023.


But he made two points that are more encouraging for brands. The first is that higher earners in China are making shopping trips to South Korea, Japan, Singapore and other nearby destinations where luxury brands have a good presence.


Mr Bianchi said a triple-digit increase in Chinese shoppers’ spend on luxury goods in those places is a possibility this year.


The second point is that, while there is an ongoing contraction in spending in China on what BCG calls “aspirational products”, the value of acquisitions by consumers that it refers to as “high-spenders” is up by 15%.


According to Filippo Bianchi, said these high-worth consumers are concentrating on products that they perceive to be long-lasting and to be capable of holding their value over a long product lifetime.

About APLF

We bring leather, material and fashion businesses together: an opportunity to meet and greet face to face. We bring them from all parts of the world so that they can find fresh partners, discover new customers or suppliers and keep ahead of industry developments.

 

We organise a number of trade exhibitions which focus on fashion and lifestyle: sectors that are constantly in flux, so visitors and exhibitors alike need to be constantly aware both of the changes around them and those forecast for coming seasons.

 

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