Editor’s Note
This article highlights a significant shift in China’s luxury market, where domestic brands are gaining ground against international giants, particularly through e-commerce channels. It reflects evolving consumer preferences and the growing competitiveness of local players.
The growth momentum of local brands is rapidly expanding in China’s luxury market. A trend has been observed where sales of some Chinese brands, centered on e-commerce platforms, are surpassing those of global luxury brands.
According to recently compiled consumption data, over the past two years in China’s luxury market, five Chinese local brands recorded higher growth rates than seven global brands across major categories such as handbags, apparel, fragrances, cosmetics, and jewelry. Laopu Gold’s e-commerce sales from Q1 to Q3 this year surged by over 1,000% compared to two years ago, and Songmont’s online handbag sales also increased by approximately 90%.
In contrast, global luxury houses showed clear weakness. Gucci’s online bag sales in China decreased by over 50%, and Michael Kors also saw a decline of about 40%. In categories like cosmetics, fragrances, and apparel, Chinese brands such as Mao Geping, To Summer, and ICICLE continued their overall expansion.
A distinct change is also evident in the sales flow on e-commerce platforms. Based on Tmall’s sales over the recent 12 months, Laopu Gold recorded $630 million, significantly surpassing Van Cleef & Arpels’ $57 million. Mao Geping reached $125 million in sales, about double that of Bobbi Brown.
According to major industry reports, China’s luxury market is estimated to have contracted by up to 20% last year. While the poor performance of global luxury groups continues, local brands are rapidly expanding their market share based on price competitiveness and consumer accessibility.