China

The once-promising Chinese travel retail market is showing little signs of recovery, causing global beauty giants to reevaluate their strategies and reduce promotions.

With soaring profits and rapidly expanding store networks, ‘heritage-gold’ jewellery brands like Laopu Gold and Lao Feng Xiang are red-hot in China’s otherwise tepid luxury market.

Local factories report falling orders, claiming the ultra-fast-fashion giant is diversifying production to Vietnam.

Once fashion’s most reliable growth engine, the Chinese market is shifting as consumer spending cools and shoppers with more choice than ever gravitate toward savvy domestic brands. Opportunities for international players are still plentiful, but the old formula for succeeding in China is no longer relevant. Brands need a new game plan to stand out.

The platform has long been one of China’s most important marketing tools, but until now has struggled to become a sales engine for brands.

A new generation of Chinese fashion designers are extending their international footprints beyond western markets, tapping sourcing hubs in India and Turkey and retailers from Dubai to Mexico.

The key question is whether the drop is due to a weakening economy or a shift in consumer perception towards luxury items as mere commodities.

Amid China’s market struggles, a broader trend of shifting consumption towards services and unique experiences is emerging, despite ongoing challenges like modest income growth and declining home prices.