Chinese shoppers are increasingly turning to homegrown luxury brands, a blow to heritage US and European giants which have come to rely on the country’s huge market.
E-commerce sales of the high-end Chinese brand Laopu Gold have surged 1,000% so far this year compared to 2023, and other firms have seen large, if less spectacular, rises.
Meanwhile Gucci, Michael Kors, and other Western brands have seen their takings fall. China’s slowing economy has already hit the luxury market — LVMH’s shares are down 30% from their 2023 peak. The big names are trying to fight back: L’Oréal bought a stake in a Chinese skincare firm, as “C-Beauty” brands take an ever larger market share.