China's Role in Global Fashion

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From the recent Pharrell for Louis Vuitton show in Hong Kong to Prada’s Shanghai Exhibition that showcases its storied history, leading international luxury brands are shifting their focus towards a China-centric approach as they face increasing competition from rising Chinese designers.

Once seen merely as a key consumption market for global luxury brands, Chinese luxury goods consumption is projected to account for 25% of the global luxury goods market by 2025. However, China is now transitioning into an exporter of creativity - this shift is characterized by an increasing appreciation of the emerging designers with an authentic narrative that leverages personal background and cultural heritage into their designs. Chinese designers, such as Jiang Yu Tong (founder of ShuShu/Tong), Sandy Liang, and Qiu Shu Ting, are examples of successful emerging designers that appeal to both domestic and international consumers with their unique brand identities.

Notably, the sales contribution of top 20 Chinese brands in the apparel market has been surpassing the top 20 international brands, accounting for 60% of the total sales in 2021. Therefore, understanding the Chinese market is pivotal for anyone who is building or investing in brands with a global impact, given the size and dynamic nature of this market. This month's deep dive will discuss the historical context of China as a consumer market, and the infrastructure developments and consumer behavior patterns driving this reverse shift.

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