Will luxury sales in China be on its comeback?



A-2

Table of Contents
[]

    Chinese luxury market following Covid-19 pandemicThe desire for luxury goods / ph: pexels@Mister Mister

    Chinese luxury market following Covid-19 pandemicLuxury brands are seeking ways to get to Chinese customers more / ph: pexels@Magda Ehlers

Luxury sales in China is on its comeback The Covid-19 pandemic definitely causes many losses to the global economy. However, the luxury goods market in China sees a light at the end of the tunnel.

The luxury market has always been one of the most thriving ones in China because the rich in China are increasingly paying their great interest in luxury goods.

The Covid-19 pandemic, which began in China, no doubt has caused significant losses in every aspect of our lives.

Markets see their interruption and companies are put at the edge of bankruptcy. However, these seem not to be right for luxury brands operating in China.

The luxury market, which is estimated to be worth $111 billion, is on its comeback.

Rarely the signs of losses due to the pandemic can be seen and the market is now developing at such a fast pace as if there had been not a Covid-19 pandemic.

Will Chinese luxury market be on its rise again?

Chinese luxury market following Covid-19 pandemicThe desire for luxury goods / ph: pexels@Mister Mister

 

The rich in China have been well known for their willingness to pay a big amount on luxury shopping.

Although the pandemic has been seriously not only in China but also in many parts of the world, the luxury goods’ sales experience a significant increase.

This is thanks to the governmental efforts in controlling the pandemic as well as the luxury shopping interest of people in the nation. According to data collected and analyzed by Bain & Co, before the Covid-19 pandemic, about two-thirds of luxury products were bought from foreign designer brands, mainly through individuals buying here in the official store and then sending them to the sellers in China. Recently, due to the closure of the border gate following the pandemic, even you have money available, you might not buy luxury watches and luxury goods in China.

It cannot be denied that demand for products of luxury brands is always high in China, making it a potential market for designer brands to expand their operation.

According to Bain and Co, in 2025, more than half of luxury goods in China will be bought domestically instead of coming from outside the country. According to Amrita Banta, the director of the Agility Research consulting company, Chinese love buying luxury goods domestically which pushes more importing of luxury brands to sell. Promotions and advertising are boosted considerably to grab customers better.

Business restructuring towards luxury products

Chinese luxury market following Covid-19 pandemicLuxury brands are seeking ways to get to Chinese customers more / ph: pexels@Magda Ehlers

 

It seems that China is controlling the Covid-19 pandemic; thus, Chinese customers pay attention to luxury products like what they used to.

According to Boston Consulting, by controlling the Covid-19 pandemic well, the Chinese luxury market will experience 10% higher in sales, instead of a 45% decrease in the global luxury market. The President of Richemont, Johann Rupert, believes that everything is back to its normal operation before the Covid pandemic and luxury stores are witnessing good sales.

The lack of Chinese tourists has seriously affected the revenue of luxury brands such as LVMH and Moncler SaA. Normally, Chinese customers account for a big sales amount.

The CFO of Kering SA, Jean Marc Duplaix, that the number of Chinese customers drops forced them to build new distribution methods.

A-3

These methods, no matter what they are, need to get to the Chinese luxury market more. Since the beginning of the year 2020, more and more luxury designer brands have opened their official stores on e-commerce site Tmall in China. Those names include: Prada, Miu Miu, Balenciaga, Piaget or Montblanc,…

Cooperation with a third party (normally an e-commerce site) is needed to boost their sales in China. Many exclusively luxury brands, such as Louis Vuitton, Givenchy and Chloe, have to hire Livestream groups to generate sales in the nation. Previously, designer brands did not cooperate with the eCommerce sites because of the risk of losing an exclusive image and brand reputation.

However, it seems that things are different now. Before the pandemic, most luxury brands avoided stocking their luxury goods in China because of the serious counterfeiting in the country, leaving for current product shortage which make people hunting for luxury goods now need to find a luxury second hand store –where they can satisfy themselves about desire of luxury products from designer brands. The Covid-19 pandemic has put its negative impacts on the economy, the company and everyone.

However, it is from the pandemic that they find how potential the luxury market is in China as well as how luxury brands do to embrace more Chinese customers.

Will luxury sales in China be on its comeback?

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone

AD4


Valentino Collezione Milano

Romanticism redefined, set anew in its freest form.
 

Romanticism redefined, set anew in its freest form.
 

Read more

Controlling personal finance and budgeting app

Emporio Armani Building Dialogues SS21 Collection

Discover the Emporio Armani Building Dialogues SS21 Collection.

Discover the Emporio Armani Building Dialogues SS21 Collection.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

Max Mara Spring Summer 2021 fashion show

Exquisite expressions of beauty. Take a closer look at the Max Mara Spring Summer 2021 fashion show.

Exquisite expressions of beauty. Take a closer look at the Max Mara Spring Summer 2021 fashion show.

Read more

Fendi SS21 accessories

Defined by the unexpected, intricate textures, the Fendi SS21 accessories demonstrate Fendi’s penchant for creating elegant, luxurious, versatile pieces.

Defined by the unexpected, intricate textures, the Fendi SS21 accessories demonstrate Fendi’s penchant for creating elegant, luxurious, versatile pieces.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

ETRO Women's Spring Summer 2021 Fashion Show

Discover the ETRO Women's Spring Summer 2021 Fashion Show.

Discover the ETRO Women\'s Spring Summer 2021 Fashion Show.

Read more

Alberta Ferretti Spring Summer 2021

“I wanted to design a collection that would communicate the natural femininity that women express when they are extremely self-aware” Alberta Ferretti

“I wanted to design a collection that would communicate the natural femininity that women express when they are extremely self-aware” Alberta Ferretti

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.