China is definitely the biggest player in luxury and fashion. Its relevance grew exponentially in the past 15 years.
An article on Jing Daily says that:
Bain and Company, collaborating with Fondazione Altagamma, the Italian luxury goods manufacturers’ industry foundation, published their latest report, “Bain & Company Luxury Study 2020 Spring Update,” which sheds light on how China will only increase in importance for luxury players, as Chinese consumers will account for nearly 50 percent of the global luxury market — valued at €320-330 billion — by 2025. Thanks to China’s speedy recovery from the COVID-19 lockdown, its vast generation of young and internet savvy consumers, brands that can understand the China market are likely to survive this crisis and thrive in the long-term.
Nevertheless, the luxury market will face a difficult year ahead. The report expects that for the full-year 2020, the market could contract between 20-35%, depending on the speed of the recovery. And for the luxury market to reach pre-COVID-19 levels, don’t expect that to happen until sometime 2020 and 2023.
In the midst of the crisis, mainland China, its vast online channels, and the accessories category have been the only bright spots for the global luxury market. Both Europe and the US are still deeply impacted by the ongoing pandemic and having the slowest recovery.
Jiaqi Luo is a fashion and luxury expert and writer.
In our conversation we will talk about what’s next for luxury, the Chinese customer attitude, the booming social media, how relevant is the cultural acknowledgement for a brand willing to conquer the Chinese market.
We will also focus on the expectations of Chinese customers versus the luxury and fashion brands.
On May 7th at 4pm join us via Zoom or Facebook live on the page of The Student Hotel.
Bring your own cup!