Hello readers!
I’m currently reading Erwan Rambourg’s '“The Bling Dynasty: Why the Reign of Chinese Luxury Shoppers Has Only Just Begun” and I would like to share with you author’s thoughts:
“Between 2015 and 2025, the number of Chinese luxury consumers should double - from 75 million to 150 million - while spending on luxury items by Chinese nationals should triple. This means the average ‘dollar transaction’ will be up 50% in the period. This will stem from the combined impacts of product price inflation and general trading up of consumers linked to a greater purchasing power accounting for the rest. Luxury brands will benefit from the surge of a ‘middle-class kingdom’.”
In the latest Altagamma’s report I’ve linked below, you will find the data reporting that China’s luxury spending is expected to decrease to a lesser extent than in other markets. Thus, the trend of Chinese consumers representing the majority of luxury shoppers will accelerate in a post-pandemic economy.
In the second issue of Fashion Business Reader Brief, I share with you Altagamma’s report on the state of luxury industry, Wealth-X reports on China’s and Russia’s UHNWIs, and fashion news digest. I also recommend you to read “The Bling Dynasty” book or at least watch Erwan Rambourg’s interview in the Condé Nast Luxury Conference digital archive.
Best,
Assiya Assanbayeva
More news and articles on Fashion & Luxury industry on Linkedin
FEATURED REPORTS
“Forecast on the Worldwide Personal Luxury Goods Industry in 2020” Altagamma Consensus 2020 Update, produced in collaboration with 22 international analysts
“The Wealthy in China” by Wealth-X
“The Wealthy in Russia” by Wealth-X
FASHION NEWS DIGEST
Fashion industry will likely be different post-pandemic
In 2019, ecommerce sales accounted for 14 percent of global sales, meaning 86 percent of sales still came from bricks-and-mortar stores. The fashion industry is expected to lose 25-35 percent of sales due to pandemic-related store closures. The fashion and luxury industry could also suffer a severe recession, in which total sales drop $450-650 billion from 2019 levels. (Luxury Daily)
As retailers reopen, curbside pickup experience will be the key to success
Before, curbside was one of a number of fulfillment options retailers may have as part of an overall omnichannel strategy. Today, it’s become an important way for some retailers to leverage their physical spaces as stores are closed and people feel uncomfortable stepping foot in public. But curbside is no panacea — it’s both expensive to implement has a few operational obstacles. What’s more, it may require increased customer education, as well as a new approach to product marketing and merchandizing. (Modern Retail)
China’s “Revenge Spending” Isn’t Coming to America
Prior to the COVID-19 crisis, the anti-consumerism trend was already on the rise in the US, which doesn’t bode well for episodes of “revenge spending” that defined China in the first days of post-lockdown happening in the US. The Chinese market already appears to be on its way to recovery. Unfortunately, the United States isn’t. (Jing Daily)
Tmall Super Brand Day : what to learn from the 10 case studies
Super Brand Days are Tmall’s way of offering top brands an exclusive marketing opportunity. Brands selected to participate can choose a day within the year to launch new products or special events, while Tmall takes on the role of “integrator”, playing to its advantages and media impact as an e-commerce giant. When the pandemic period accelerated online consumption in early 2020, who were the big Super Brand Day players? (Vogue Business in China)