【China】New Consumption Observation: Are High-End Consumer Brands Starting to ‘Compete’ Through Stores?

According to data released by the National Bureau of Statistics, China’s total retail sales of consumer goods grew by 4.0% from January to February 2025, with retail sales of gold, silver, and jewelry products increasing by 5.4% year-on-year. The recovery trend in the consumer market is evident, and the high-end consumer goods market is also releasing more positive signals.
Driven by both consumption upgrading and refined market operations, brands are now focusing more on building high-quality store structures compared to the previous extensive store opening approach. They are highlighting brand value and competitiveness through multiple upgrades such as spatial aesthetics, immersive experiences, and digital services.
High-end consumer goods groups like LVMH, Richemont, and Kering are continuously exploring new retail models and adopting a “meticulous cultivation” store strategy. On one hand, they are conducting in-depth renovations of existing stores to improve service quality; on the other hand, they are reallocating store resources, tilting channel resources towards lower-tier cities.
Taking Tiffany as an example, in 2024, the brand renovated and newly opened a total of 7 stores in the domestic market. In January of this year, its flagship store in Chengdu’s Taikoo Li reopened after a year-long renovation. It is reported that the brand will continue to steadily advance its store upgrade and expansion plans this year. Additionally, it is expected that in early September this year, Lanvin’s renovated store in Shanghai’s Plaza 66 will officially debut.
At the end of 2024, the Balenciaga flagship store that opened in Shanghai’s Taikoo Hui Xintiandi caught attention with its architectural design featuring recycled leather, glass, cement, and concrete. This store was also the brand’s largest store in China at the time.
In February this year, “Casa Loewe Shanghai” opened its doors, which is also the largest Loewe boutique in Asia. The entire store not only features aesthetically valuable spatial design but also houses collections of art, craftsmanship, and sculptures from around the world, making the entire store a cultural space.

While store images are being renewed, optimizing the channel structure has become an important dimension of brand strategic adjustments. According to Fashion Business Express, the Italian luxury brand Bottega Veneta, under the Kering Group, initiated a channel upgrade plan for the Chinese market in March 2024, and successively closed four stores in March this year: Chengdu Taikoo Li, Beijing Daxing Airport, Taiyuan Wangfujing, and Chengdu Tianfu Airport.
It is worth noting that, according to multiple industry sources, most of the closed stores were operated by agents, while the direct-operated system continues to be strengthened. Flagship stores in core commercial districts such as Shanghai’s Plaza 66 and Beijing’s SKP not only maintain normal operations but are also planning experiential upgrades. Direct-operated stores may become the key focus for brands’ layout in the Chinese market in the future.

The global luxury market showed a significant divergence pattern over the past year, with China’s policy orientation resonating with the trend of consumption upgrading. The 2024 Central Economic Work Conference mentioned actively developing the “first launch economy,” ice and snow economy, and silver economy. Major international high-end brands have also demonstrated keen market strategic acumen, attracting more consumers and seeking to release more consumption potential through a series of store strategy transformations, such as introducing more brand first stores and upgrading flagship store experiences, to promote the qualitative improvement and expansion of consumption.
On March 21, 2024, Loewe’s first-ever brand exhibition, “Crafted World,” debuted at the Shanghai Exhibition Center. On July 22, a Louis Vuitton chocolate boutique appeared at Qiantan Taikoo Li; on October 31, the LV Nanchang Wushang MALL boutique was unveiled; the GUCCI Nanchang Wushang MALL store debuted on November 6; in December of the same year, China’s first LV home space landed at Beijing’s China World Mall.
The policy-driven boom in the first launch economy has opened up a new incremental market for high-end consumer goods brands, accelerating their dual-drive model of “first store + store upgrade.” This helps reshape the way consumers interact with brands, and its pulling effect is also reflected in the financial report data of companies.
Richemont Group’s financial report shows that the decline in sales in the Asia-Pacific region has narrowed to 5%, with flagship stores in core cities like Beijing and Shanghai contributing over 60% of regional revenue.

For Hermès, according to its 2024 fiscal year performance report, annual revenue grew 13% year-on-year to 15.2 billion euros. Full-year recurring operating profit for 2024 was 6.2 billion euros, with an operating margin of 40.5%; net profit was 4.6 billion euros, an increase of 7% compared to the previous year.
LVMH Group’s revenue reached 84.7 billion euros in 2024, with fourth-quarter revenue at 23.9 billion euros, a 1% year-on-year increase. The selective retailing department and the watches & jewelry department grew by 7% and 3%, respectively. LVMH Chairman and CEO Bernard Arnault stated that to ensure the group’s long-term stable development, LVMH is actively adopting strategies to promote the sustained growth of the luxury industry and market.
According to the financial data for the third quarter of fiscal year 2025 (ended December 31, 2024) released by Richemont Group, group revenue grew 10% to 6.2 billion euros at both constant and actual exchange rates, exceeding the expected 9%.
Ralph Lauren’s third-quarter performance report showed that in the three months ended December 28, the company’s revenue grew 11% to $2.1 billion. Third-quarter net profit grew 7.5% to $297 million. Ermenegildo Zegna Group’s fourth-quarter revenue grew 3%, with the Zegna brand’s growth rate reaching 8.4%.
According to the “State of Fashion 2025” report jointly released by McKinsey and The Business of Fashion, the luxury consumption market is gradually moving towards rationality.

As consumer psychology changes and demands diversify, maintaining keen market insight and closing the distance with consumers are the key factors for high-end consumer goods companies to successfully break through under the current market environment of “survival of the fittest.”