cross-posted from: https://lemmy.sdf.org/post/44853303
As Chinese shoppers dip toes back in the luxury pool, brands are targeting economically resilient high-earners with distinctive, personalised experiences as their focus shifts more to market share than growth.
Firms like LVMH and Hermes increasingly offer intimate dinners and large-scale shows, as well as stores with private shopping areas and exclusive elevator access for the VIPs they bet will help end a post-pandemic sales slump.
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Luxury brands have accompanied earnings reports with comments offering glimmers of hope for Chinese retail, spurring a rally that has added nearly $80 billion to European luxury stock valuations. Still, few expect the sales surge of the pandemic years, and with U.S. policies rewriting global trade, China’s economic trajectory is far from certain.
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To encourage spending, perks such as intimate dinners with creative directors and celebrity ambassadors have become common.
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STOCK MARKET RALLY IS GIVING WEALTHY CONFIDENCE TO SPEND
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“Especially for the target customers of luxury, you can expect that those people probably have a retail equity account, so they are seeing the benefits of the stock market rising and feeling more confident to spend more,”[said Bruno Lannes, senior partner at Bain in Shanghai].
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Luxury brands that invested during the downturn are likely to win market share as spending stabilises, even if revenue does not significantly grow, said Jacques Roizen, managing director of China consulting at Digital Luxury Group.
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