Chinese local players looking to tap on their shoppers’ luxury spending spree

Despite the national economy’s slowdown, truth is that both local and foreign analysts still believe in the luxury market appeal for Chinese shoppers. In this vein, research by Bain & Co. points to a sailing on the momentum of double-digit growth in recent years.

The Fortune Character Institute's research findings appear to confirm the optimistic outlook, reports ‘China Daily’. In 2015, Chinese consumers bought 46 percent of the luxury goods consumed worldwide. But 78 percent of it was bought outside China.

As a results of this market’s maturation, Chinese consumers of high fashion and luxury goods are becoming increasingly discerning too, warns ‘China Daily’. They don´t just want the traditional brands, but they are rapidly turning into trendsetters, hunting down the best among the existing luxury brands.

Zhou Ting, director of the Fortune Character Institute explains in a research earlier this week that "The (luxury) market remains one of the most lucrative for now and (shall remain so over) the next decade. This means, if Chinese companies and investors want a share, they should be more actively involved in every link of the supply chain, from designing and manufacturing to marketing and retailing."

Chinese top apparel and luxury players go abroad to satisfy Chinese tourists’ demand

Good proof of how local players want to take the lead in the region is the increasing interest that Shandong RuyiGroup, one of China's leading textile producers, has reportedly shown in joining the race to buyout French fashion group SMCP.

According to Bloomberg, the Chinese contestant would have joined other suitors in late January. SMCP, owner of Sandro and Maje brands, is estimated to be worth more than 1 billion dollars.

Shandong RuyiGroup is ranked among the top four of China's 500 leading textile enterprises. Its consolidated annual revenue hit a record 30 billion yuan (4.7 billion dollars) in 2013.

Such acquisition would be "just a drop in the bucket as the Chinese are fast climbing on to the upper chain of the luxury industry", said Ting.

In the same vein, VipshopHoldings has invested several millions of pounds in November for a minority stake in British fashion-maker BrandAlley, to introduce more British brands in China.

Little earlier, Vishop’s direct competitor within the Chinese online fashion space, Secoo.com, strengthened its position in Europe with the opening of a physical store at Piazza Del Duomo in Milan, as part of the “company's ten-year globalisation plan".

Zhou advances that, to his mind, no matter what, where and how the Chinese shoppers buy, that will likely determine where Chinese, and probably global, investors' .money would be invested in.