china / Retail

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.

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.

From sportswear giants Anta and Peak to cosmetic brands Maogeping and Chando, Chinese companies placed their marketing bets on team uniforms, athlete endorsements and themed products.

The sportswear giant is betting on Jordan brand’s latest ‘World of Flight’ retail concept in Beijing to kickstart sales in the region, amid increasing competition from home grown players Anta and Li-Ning.

While travel to Europe remains muted, Chinese shoppers are flocking to Singapore, Thailand and other Southeast Asian destinations where fashion retailers are hoping Lunar New Year marketing investments will pay off.

Despite the country’s protracted property crisis, deflationary pressures and other economic headwinds, its domestic luxury market is expected to grow 4 to 6 percent in 2024, outpacing both Europe and the US.