{"id":12429,"date":"2023-05-30T14:00:18","date_gmt":"2023-05-30T14:00:18","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=12429"},"modified":"2025-04-23T09:31:31","modified_gmt":"2025-04-23T09:31:31","slug":"what-luxury-brands-need-to-know-before-expanding-into-china","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/what-luxury-brands-need-to-know-before-expanding-into-china\/","title":{"rendered":"What luxury brands need to know before expanding into China"},"content":{"rendered":"

China is the world\u2019s second largest luxury market thanks to a rising middle class and many high net worth individuals (HNWIs) with huge disposable incomes. It also has a growing number of millennials and Gen Z consumers with a considerable interest in premium and luxury brands. Hawksford\u2019s Fabio Stella<\/strong> and Dario Marotta<\/strong> explore the opportunities for luxury brands<\/span><\/h2>\n

China\u2019s luxury market has bounced back following the reopening of the country\u2019s borders, creating a wealth of new business opportunities. According to a recent Morgan Stanley report, Chinese consumers will make up 60% of total global spending growth on luxury items by 2030. In fact, mainland Chinese buyers will boost demand for luxury items by 20% in 2023 alone.<\/span><\/p>\n

So, how can fashion and luxury retail brands capitalise on this to successfully expand in China?<\/span><\/p>\n

\"launchpad<\/a><\/p>\n

Why China and why now?<\/b><\/h4>\n

Chinese shoppers are increasingly making their home country their primary retail destination, with a growing proportion of the \u00a383 billion spent annually on luxury goods by Chinese consumers remaining within the country.\u00a0<\/span><\/p>\n

Historically, the Chinese mainland\u2019s higher prices and tax rates compared to places such as Europe or Hong Kong saw consumers look elsewhere for luxury goods. Generally, people would purchase when travelling abroad or ask their friends or \u201cdaigou<\/a>\u201d shoppers to buy luxury goods for them at a cheaper price.<\/span><\/p>\n

However, the travel restrictions imposed during the Covid-19 pandemic encouraged consumers to satisfy their luxury needs domestically.\u00a0<\/span><\/p>\n