China’s Luxury Goods Industry Set For Bright Future.

Retailers, investors and industry insiders believe China’s luxury goods industry, despite losses in 2015, is still headed for a brighter future, coasting on the momentum of double-digit growth in recent years. Bain & Co, a respected research institute recently confirmed such optimistic predictions. In 2015, Chinese consumers bought 46 percent of the luxury goods consumed worldwide whilst a staggering 78 percent of luxury goods were bought outside of China. This clearly presents a huge opportunity for western, luxury brands.

Chinese consumers of high fashion and luxury goods are becoming increasingly discerning. By buying and encouraging the best among the existing luxury brands, Chinese consumers are emerging to be powerful trendsetters, affecting the trajectory of the whole industry itself.

There have been significant developments with Shandong RuyiGroup, one of China’s leading textile producers, reportedly joining the bidders for French fashion group SMCP on Jan 20, according to a Bloomberg report.

SMCP is estimated to be worth more than $1 billion. The group owns affordable luxury brands such as Maje and Sandro, which have been enjoying surging popularity among China’s burgeoning middle class in the last few years.

Zhou Ting, director of the Fortune Character Institute said; “The (luxury) market remains one of the most lucrative for now and (shall remain so over) the next decade. This means, if Chinese companies and investors want a share, they should be more actively involved in every link of the supply chain, from designing and manufacturing to marketing and retailing.
Benji specializes in e-commerce, SEO and digital marketing in China and lives in Shanghai, for more information see his website/blog here.

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