China in recent years has emerged as a major market for high-end apparel. Many luxury brands lost a sizable market during the prolonged Covid-19 scare in China. Apparel experts now see a glimmer of resurge in the Chinese market as the pandemic subsides.
Luxury giant LVMH for instance has reported that wealthy Chinese consumers have started visiting retail stores in large numbers. In fact, Bernard Arnault, Chairman, and CEO of LVMH Moet Hennessy Louis Vuitton expressed his optimism about the Chinese apparel market at a news conference in Paris, on January 26, 2023.
He said LVMH has reason to be optimistic about China. In Macao, where the Chinese are4 now allowed to travel, the stores are full of buyers which is a very positive sign. He expects 2023 to be an excellent year for the company. LVMH reported its second straight year of record sales and profits, with 2022 revenue up 23 percent to 79.2 billion euros, or about $86.2 billion. Profits grew 17 percent to 14 billion euros, or about $15.2 billion.
The return of the Chinese luxury consumer is good news for the global luxury industry in 2023, as they see the U.S. and European economies going slow. Shares of most big luxury names have jumped this month on hopes of Chinese luxury spending bouncing back. In fact, the Chinese market accounted for a third of total luxury sales before the pandemic.
An official of LVMH however cautioned that though the sales have increased the pre-pandemic level of January 2019 has not yet been reached. Other luxury brands like Burberry and Swatch earlier this month have also expressed similar sentiments about the Chinese market.
