The luxury market in China is becoming younger, more diffuse. Customers are trying out far more brands than before rather than fixating on a handful and are more interested in things like sustainability and even secondhand luxury.
LVMH has its eyes firmly set on deepening its accessible jewelry portfolio and capturing a greater share of the Chinese middle class as well as US-based Chinese students and US-bound Chinese tourists. Although 2019 marked a decline in Chinese travelers headed for the US and a slower pace of Chinese student enrolments, there are signs that both could recover in 2020. Similarly, the mid-market jewelry segment in China remains ripe for continued growth. This opens up LVMH to tap more of the Chinese middle class, which also favors the group’s higher-end offerings. LVMH can’t expect younger Chinese customers to be as enthusiastic about heritage Louis Vuitton collections as their parents. To stay on top, the brand has to make smart additions to its portfolio.
Italian apparel brand Moncler’s high-priced puffer jackets are a regular sight in Beijing or Shanghai. With nearly 50 stores in Greater China, Moncler already has a strong stance in the country and is a popular purchase for Chinese tourists from Los Angeles to Milan.