Luxury Brands Set Up Shop in Mainland China
Despite the economic shock of the coronavirus, analysts say China’s demand for luxury goods hasn’t waned much – and it’s drawing top brands from Hong Kong to the mainland.
Consulting firm Bain estimated Chinese consumers accounted for about 35% of 281 billion euros last year in global luxury spending, most of which has typically occurred overseas or in Hong Kong.
Now that the coronavirus is keeping most Chinese from traveling, several analysts expect them to buy more luxury products at home.
Combined with the impact of last year’s violent protests in Hong Kong and this year’s restrictions on cross-border travel, many luxury brands are closing stores in the city and looking at expanding into mainland China through physical locations and e-commerce.