China’s luxury industry bouncing back from slump

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The luxury goods sector has witnessed a rebound in China and is playing an active role in boosting global economic recovery despite the challenges posed by the COVID-19 outbreak. AsiaNewsNetwork

The COVID-19 pandemic has hit the luxury and fashion industry hard. According to a study conducted by Boston Consulting Group, global sales in these two sectors could drop by 25 to 30 percent this year compared to 2019.

“Brick-and-mortar stores are still very important, while digitalization is also essential. The Chinese market has always been very dynamic and strong, so we will adjust our strategies according to market demand in the process of expanding our businesses,” Babin said. “Many brands began to expand their online presence since the COVID-19 outbreak. We introduced our official online shopping platform a long time ago and have achieved great results. We hope to provide consumers with valuable, convenient and rich experiences through digitalization,” he said.

In the coming months they plan to offer more innovative programs, such as livestreaming and social e-commerce, to help brands deal with the impact of the pandemic, Jiang said. Other luxury brands are recovering from the COVID-19 pandemic. French luxury group LVMH said its top brands including Louis Vuitton saw sales on the Chinese mainland rise by more than 50 percent year-on-year in early April. On April 11, Hermes reopened its Guangzhou flagship store and reportedly achieved turnover of $2.7 million in a single day.

 

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