Luxury brands must innovate as there’s no “new China”
15/05/2017
At the start of its 2017 Business of Luxury Summit in Lisbon (May 14-16), the newspaper quoted an Exane BNP Paribas analyst, Luca Solca, as saying brands can no longer rely on the Chinese market for growth. Mr Solca said that Chinese consumers are becoming choosier about the products they buy and that the luxury market in China is slowing as a result.
According to the FT report, the global luxury market has a value of more than €250 billion a year; it quoted consultancy Bain as saying Chinese consumers are now responsible for 30% of this total spend. With China slowing down, Mr Solca pointed out that there is no “new China” for brands to pursue and, therefore, one of the most important challenges these companies will face in the years ahead is what he called “the newness imperative”.
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