China Decoded

Both brands saw sales decline during the Uighur forced labour controversy but Adidas is more vulnerable to competition from local sportswear giants Li Ning and Anta.

Challenges in the executive pipeline mean most companies don’t have a Chinese board member to help them navigate the complexities of the market even though China accounts for a third of global luxury revenues.

Grey market resellers that frustrate global brands in China by exploiting cross-border price gaps have been unleashed by the end of pandemic-era travel restrictions.

Luxury brands could see an uplift in destinations like Dubai, Singapore and Australia’s Gold Coast as China’s second outbound tourism wave gets underway.

The imminent breakup of Alibaba Group underscores the importance of having a diverse channel mix in China’s online fashion market but many brands are still over-reliant on two big platforms.

International buyers and talent scouts must cast their nets wider than the usual fashion week incubators, prizes and schools to find the country’s next crop of emerging brands.

Chinese celebrities made a comeback at the European shows this season, but the brands hosting them see the country’s A-listers as more high-risk, high-reward than ever amid fresh scandals and tightening government regulation.

Owners of international brands like Lanvin and Carven faced challenges in their home market under ‘zero-Covid’ rules but China’s economic recovery is now on the horizon.

Critics say they are dystopian, but ‘flawless’ virtual influencers may be worth considering in a market where celebrity brand ambassadors have become an increasingly risky investment.

Mainland shoppers have flocked to local tourism hubs like Macau and Hainan over Chinese New Year and are expected to visit Asian destinations like Thailand and Singapore before returning in droves to European fashion capitals later this year.

Beijing’s Covid-19 policy shift will give the sector a boost in 2023 but a surge in infections and sluggish economic growth could dampen the recovery after an uplift from Chinese New Year.

Despite disappointing Singles Day sales results, harsh Zero Covid restrictions and supply chain woes, international beauty conglomerates continue to see China as a growth engine.