The Future Of Luxury

Has the covid-19 pandemic only accelerated the trends shaping the future of luxury in the world’s largest luxury marketplace, China? Chrissie mcclatchie finds out.

- Chrissie Mcclatchie

April 11 this year was a record day for Hermès in Taikoo Hui Guangzhou. After two months, the French luxury brand’s flagship address finally reopened when lockdown measures in the southern Chinese city lifted. As shopping-starved VIP customers filed in, the brand’s signature handbags (including an elusive diamond-studded Himalaya Birkin) and other leather goods flew off the shelves. By day’s end, the single store is said to have taken US$2.7 million in sales – a figure reported to be a national record.

There’s currently no country in the world that can match China’s thirst for luxury goods. Last year, mainland Chinese consumers were responsible for 35 per cent of all sales in the market, according to Ruder Finn and Consumer Search Group’s ‘China Luxury Forecast 2020’. Luxury consumption in the country grew by 26 per cent (compared to a 6.1 per cent national GDP growth rate). Clothing and watches top the wish list, led by international brand names such as Chanel and Rolex.