\n \n \n “. concat(self. i18n. t(‘search. voice. recognition_retry’), “\n
SHANGHAI – As China’s major cities face a new round of coronavirus outbreaks, long-term luxury consumption remains uncertain.
According to Barclays’ most recent analysis, a recurring blockade implies a “slightly negative flat expansion in China. “But the investment bank “continues to favor luxury names with a counterfeit portfolio, LVMH and Richemont. “
More from World Water Day
Hermes Man Spring 2023
Year of the Tiger Chinese New Year Campaigns
Hermès PAP Spring 2022
Barclays expects luxury sales in Asia Pacific to grow around 5% in the current part of 2022.
“In our opinion, it doesn’t seem too easy, as long as there isn’t a reversal of a serious lockdown in key cities,” Barclays said of its forecast.
At the moment, in 2022, the bank expects sales of major luxury brands in the Asian market to increase by an average of 6%. The report expects Hermès sales to increase by 9%, Kering by 8%, LVMH Moët Hennessy. Louis Vuitton up 4% and Richemont Group up 3%.
The highly transmissible BA. 5 COVID-19 subvariant has forced Chinese cities into full or partial closures in recent weeks.
After noting victory over COVID-19 in late June, Shanghai reported more than 200 local cases last week, most commonly linked to an outbreak in a karaoke parlor. The most contagious BA. 5 variant discovered in one case last Friday, and the city reported 55 new cases on Tuesday.
Many brands have delayed scheduled events in the city. Prada postponed a summer film screening in Rongzhai this week at the last minute. progress in Shanghai later this month.
Other cities have also begun to impose tougher lockdown measures. Xi’an, a northwestern city of thirteen million people, went into a seven-day shutdown earlier this month. Macau began a week-long shutdown of non-essential business on Monday. The capital of hainan’s duty-free island, Haikou, also entered a seven-day blockade last Saturday.
Despite the network shutdowns, primary luxury remains open, but Barclays believes consumers will remain cautious, even nervous, in the coming months.
“The initial reopening in Shanghai has noted very positive symptoms of a return to luxury sales, but the sustainability of those sales is based on positive customer sentiment, which is complicated with common closures,” the report says.
Related:
Retail contract in China, luxury demand returns
Lunar New Year Spending Has Fallen as COVID-19 Considerations Loom in China
Bain warns that the expansion of luxury in China will slow in 2022
Subscribe to the WWD newsletter. For the latest news, we on Twitter, Facebook and Instagram.
Click here for the full article.