Mia Castagnone’s Post

EXCERPTS: Wealthy Chinese, the mainstay of luxury fashion, have been on a shopping spree in Japan to take advantage of the favorable currency exchange and lifted sales there by 57%, while creating a slump at home. For European fashion, strong sales in Japan are not a blessing. Yen-denominated revenue erodes their top line as well as profitability because their cost base is in European currencies. But the weaker yen isn’t the root cause of global luxury’s woes. There’s a much more worrying Japanification factor: Consumers in China are starting to behave like Japanese did in the 1990s. It’s pretty common to hear executives in the luxury industry complain about how China’s economic slowdown. Rather, the Chinese have been buying European luxury for two decades. The bar to entice them to spend has risen. Just like a previous generation in Japan, consumers in China have found their own sense and sensibility. COMMENT: "Japanification" in China's urban centers has been obvious for some time, right down to home remodeling that is increasingly skewed towards high-end products (e.g. refrigerators, stoves, ovens, sinks, and toilets) that you buy once (or one more time) as they are well made, long lasting, versus the usual tear down remodeling that you see everyday due to poorly made products with poor materials.

Luxury’s Latest Foe: 40% Discounts on Chinese Resale Sites. Luxury powerhouses like LVMH and Kering are facing a fast-growing problem in China: a grey market offering brand-new, authenticated goods procured in other countries for major discounts on mainland prices. Read More: https://lnkd.in/gXpuBBEH #LuxuryConnect #LuxuryCruxx

“Up to 2020, a significant amount of the consumption of luxury goods took place outside mainland China as Chinese consumers sought a wider product offering and the benefits of tax-free shopping. However, Covid disrupted the model and flow of business and the industry has been awaiting a post-Covid revival.” Tim Jackson, Head of Academic Operations at the British School of Fashion, shares key insights into the luxury market in Asia, as highlighted at the 20th Annual FT Business of Luxury Summit. Read the full feature here: bit.ly/4ct0VSI #LuxuryBriefing #LuxuryMarket #Asia #FTLuxurySummit #BritishSchoolOfFashion #IndustryInsights

In the face of recent declines in Swiss watch imports to mainland China and Hong Kong, luxury watch brands remain optimistic, pushing forward with retail expansion plans in anticipation of a market rebound. Despite a 24% drop in exports in Q1 2024, these brands are strategically increasing their presence, betting on China's projected growth to become the world’s top luxury market by 2030. An intriguing mix of caution and confidence defines their approach to navigating the shifting tides of luxury consumer behavior in the region. #LuxuryWatches #MarketTrends #BusinessStrategy #luxurychina

❓ Did you know that 40% of Chinese luxury purchases were made overseas in H1 2024? ✈️💼 Despite economic challenges, China’s luxury spending is projected to hit 572 billion RMB this year, with high-end consumers driving the market forward. Here are some key numbers from BCG & TMI: 💰 High-end spenders (10% of the market) now account for 45% of total sales 📈 Fastest-growing categories: Leather goods (+7%) and Jewelry (+6%) 📲 86% of consumers research online before buying Swipe through our carousel for more insights! 🔍✨ 👉 Follow us to stay ahead of the trends and get the latest luxury market updates. #LuxuryMarket #ChinaTrends #LuxurySpending #BCG #TMI #DigitalMarketing #LuxuryGrowth

Last week, I came across Lisa N.’s article about “China’s Luxury Pivot to Value, Experiences,” . The article touched on how high-spending consumers are boosting growth while lighter spenders are cutting back—something that also came up in a Boston Consulting Group (BCG) report. It inspired me to put together a carousel highlighting some of the key data and trends in China’s luxury market. Check it out and let me know what you think! 💡 Swipe through for some interesting insights. 🔍✨ 👉 Follow us Kivisense | AI, XR, AR, 3D MarTech for more on China luxury market trends and digital marketing tips! #LuxuryMarket #ChinaTrends #LuxurySpending #BCG #TMI #DigitalMarketing #LuxuryGrowth

The luxury goods industry has relied heavily on China, but latest updates suggest that this market is starting to slow. - Overall, major luxury brands have seen a 6% decline in revenues from the region. - Chinese consumers are shifting towards value-oriented luxury purchases, prioritizing items that retain value such as watches and jewelry. - Brands like Versace and Balenciaga are offering discounts of up to 40% on flagship platforms in China, reflecting broader market pressures. - Despite this, high-end brands like Hermès and Louis Vuitton continue to maintain their desirability and exclusivity, targeting high-net-worth clients. Interestingly, the wider Asia-Pacific region, particularly Tokyo and Singapore, is demonstrating resilience, supported by a stable economic environment and robust luxury demand. #LuxuryMarket #China #Asia #ConsumerTrends #LuxuryBrands #Versace #Balenciaga

The return of Japan as a reference for luxury in Asia is evident as luxury brands thrive in the country despite challenges faced in other parts of Asia. According to a recent Modern Retail article, LVMH reported 'double digit growth' in Japan for the first quarter, contrasting the sales decrease in other Asian regions. Similarly, Gucci's success in Japan sets it apart from global trends. The lower yen has attracted numerous customers from Mainland China, establishing Japan as a prime tourist shopping destination. #Japan #LuxuryMarket #RetailTrends https://lnkd.in/dHpPYcwv

The world's top luxury brands are feeling the impact of China's economic slowdown and crackdown on displays of wealth. LVMH, the largest luxury goods group, reported a 14% drop in sales in Asia, including China. Other brands like Burberry, Swatch, and Richemont also faced significant sales declines. The economic downturn and government actions against flaunting luxury online have contributed to the decrease in consumer spending on high-end goods. This trend is challenging for the luxury sector, which relies heavily on Chinese shoppers. #ThesocialTalks #LuxuryGoods #ChinaEconomy #RetailSales #LVMH #Burberry #Swatch #Richemont #EconomicSlowdown #BusinessNews

If there's one thing we know for certain, retail prices for luxury items will only increase year on year (possibly even multiple times a year as evidenced in recent cycles!). So what does this mean for consumers in the resale market? Check out this latest coverage by The Singapore Business Times where our COO Tresor Anne Tan contributed some insights on the luxury resale landscape. #luxuryfashion #luxuryresale #sustainableconsumption https://lnkd.in/gmWUxMtk