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.
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.