Twenty-two years ago, the fashion market in China was conservative and not very established. But now, the market looks very different. In general, Chinese customers like and want the same styles that fashion consumers everywhere else are into. This is the right approach for western brands looking to break into China. People in China want western product as it is. But it has to be marketed in a way that it fits the Chinese model. Failing to follow this advise is part of the reason many brands have found themselves in hot water in China over the last year or so.
While some of the initial buzz about Chinese consumers in the luxury fashion market was related to their spending outside the country, this paradigm is changing. Half of all luxury spending in China is expected to be domestic by next year. That means, brands that don’t have a physical presence in China will be missing out on a large chunk of Chinese fashion consumption. In response, a large number of luxury brands like Mulberry and Valentino have entered the market in the past year. The luxury goods market in China is expected to grow by about 20 per cent this year.