Latest news with #Maisons
Zawya
7 days ago
- Business
- Zawya
GCC Luxury Brands must adapt: New report uncovers game-changing insights into Chinese consumer behaviour
CXG, a globally respected leader in customer experience transformation and a trusted partner of over 220 luxury brands in ever-evolving markets, has delivered a pivotal new report titled 'Understanding Chinese Luxury Customers' Sentiment in 2025 and Preparing for the Future.' Examining shifting behaviors across key demographics, this in-depth study reveals key insights into the current and projected priorities of China's affluent shoppers and how this affects international luxury brands in the region. This report delivers critical insights for Maisons, fashion houses, and premium retailers seeking to maintain their leadership and relevance among luxury's most influential consumers. In a market valued at approximately CNY 800 billion (USD 110 billion) in 2025, the report offers fresh, data-led insights into evolving Chinese consumer sentiment, providing critical intelligence for European and GCC luxury brands navigating a rapidly shifting landscape. Economic Confidence Is Faltering and Reshaping Spending Habits CXG's report shows that only 55% of Chinese luxury consumers are currently confident in an economic recovery. This is a marked decline from 83% in 2023 and has led to changing patterns of wealth management. 64% of respondents say they intend to save more over the next two years, with 83% feeling the need to secure their health, 68% reserving funds for future indulgence, 49% building a nest egg for retirement, and 46% planning for their children's education. This cautious approach has led to heightened price sensitivity. 54% of Chinese consumers now actively seek the best prices on luxury items, and 48% have already purchased 'dupes' (lower-priced alternatives), with a further 47% open to doing so in the future. The trend is particularly strong in apparel and accessories, where 67% and 64% of shoppers respectively are open to alternatives. Additionally, the weak yen is attracting luxury buyers to Japan, now the preferred destination for 40% of Chinese consumers, up from just 8% in 2023. This does not mean, however, that the appetite for high-quality products and services has diminished. 81% of survey respondents say they intend to resume luxury purchases such as watches and jewelry as soon as the economy improves. Gen Z, meanwhile, is leading a present-day increase in spending on well-being, luxury travel, and experiential entertainment. The Rise of Experiential Luxury In line with global trends led by Gen Z, China is seeing a shift in preferences away from objects and toward experiences. This increases the value of travel, leisure, wellness, events, and entertainment, all of which the report indicates are likely to see an upturn over the coming months and years, regardless of the economic environment. 53% of CXG survey respondents plan to increase their spending on well-being, 49% on luxury travel, and 34% on entertainment. Cultural Nuance: The Edge for Local Brands Though Western brands are still considered more prestigious by most, China's homegrown luxury products are now becoming increasingly valued due to the very nature of being locally created and owned. While the primary motivation for Gen Z's embrace of Chinese products is affordability, 75% of Millennials and 86% of Gen X respondents have cited cultural relevance as the most important factor in choosing local products over international equivalents. With 72% of all buyers now believing China's domestic brands better reflect their own heritage, competitors outside the region must invest in more localised and meaningful storytelling to maintain or grow their connection with Chinese consumers. The Store Strikes Back: In-Person Retail Still Dominates CXG's report also found that today's younger generations prefer making high-value purchases in multi-sensory in-person environments rather than through more remote online channels. This is particularly the case for purchases over CNY 15,000 (USD 2,000), with tactile shopping and personalised service valued highly at this level of spending. However, a significant finding of the report is that these desires are not always adequately met. Retail satisfaction varies significantly, with some categories scoring as low as 23–36% on customer advocacy. This presents an opportunity for European and GCC brands, especially those with flagship stores in Milan, Paris, or key GCC cities such as Dubai and Riyadh, to lead on retail experience through exceptional service, heritage storytelling, and personalised in-store experiences. CXG's report is both a reality check and a roadmap. From immersive retail and cultural storytelling to hyper-personalisation and human-led service, it outlines clear steps for luxury brands to maintain relevance in a complex and fast-changing market. About CXG: CXG is a leading data-driven consulting and solutions provider specializing in innovative strategies to elevate customer experiences and optimize the performance of premium and luxury brands. With years of expertise from partnerships with over 220 iconic luxury brands, we guide our clients through every step of their Customer Experience and Employee Experience journeys, delivering insights and driving impactful change. We understand that customer needs are constantly evolving, and our tailored solutions are designed to meet these dynamic demands, making us the ultimate one-stop-shop for all CX transformation needs. Founded in 2006, CXG has grown into a global powerhouse, with 12 offices (including one IT hub in Tunis) catering to 85 countries and a team of more than 260 professionals. Through its expanding network of customer experience experts—comprising evaluators, learning consultants, and strategic advisors—CXG empowers luxury brands to elevate their experiences worldwide with a localized approach.
Fashion Network
27-05-2025
- Business
- Fashion Network
Zalando and CNMI name luxury 'changemakers', call out value of authenticity, quality
First those honorees. Francesca Bellettini, deputy CEO of Kering, was named in the 'Brand Vision' category and she emphasised 'proactive versus reactive approaches'. She shared her perspective on 'the distinction between a compelling brand vision and a good strategy and how to ensure a vision drives culture, innovation, and longevity across Maisons'. Meanwhile Prada Group chief marketing officer and head of corporate social responsibility Lorenzo Bertelli was recognised in the Innovation category. He talked about the group's 'diverse approach to innovation', including initiatives from the Sea Beyond programme dedicated to ocean literacy and R&D in the aerospace sector. Tod's Group president Diego Della Valle was hailed in the category Craftsmanship and emphasised 'the enduring significance of 'Made in Italy' for Tod's, highlighting its continuous evolution within a modernising industry'. He provided examples of how Tod's 'balances its rich heritage with contemporary advancements, integrating new technologies and materials while preserving its artisanal foundations'. Others honoured included Giuliano Calza, creative director of GCDS with the founders and creative directors of Sunnei, Simone Rizzo and Loris Messina in the New Gen category. They talked about the relationship between fashion and new generations 'thanks to the creation of cultural moments that go behind the runways'. They discussed 'the motivation behind their projects, the capacity of balancing creativity and commerciality and the importance of the designer's personality on the brand's identity'. As for the insights presented at the event, Bain 's top luxury expert Claudia d'Arpizio emphasised that brands 'need to reaffirm the foundations of luxury and intentionally shape the industry's future'. While the demand for luxury 'remains strong, its next frontier is yet to be uncovered,' she said. 'To seize this opportunity, brands must return to the fundamentals — anchoring their promise in quality, exceptional craftsmanship, and the power to inspire dreams, all while removing barriers to access. The true challenge for the future of this industry lies in reigniting the emotional pull of luxury for consumers, while deliberately transcending traditional business boundaries'. And she called out five key focus areas that include reshaping market boundaries through the blurring of spending between goods, services, and experiences; redefinition of competition by both incumbents and tech-fuelled insurgents; shifting customer behaviours; the evolution of the distribution landscape; and the need to safeguard the luxury supply ecosystem 'amidst uncertainty, volume reduction, and a growing focus on sustainability'. Highsnobiety founder and CEO David Fischer also presented the media brand's new white paper, Luxury Redefined: Stop selling the dream, start fitting into reality. The findings include 'the shift from aspiration to relevance, where cultural fit now outweighs the traditional dream-selling approach, and the renewed importance of product quality and craftsmanship over superficial marketing. Fischer emphasised the increasing value placed on legacy and archival storytelling, contrasting with the diminishing appeal of fleeting novelty'. He explained that the report shows 'a fundamental shift: 71% of core luxury consumers say the definition of luxury has changed in the last five years. Today's consumers seek cultural authenticity and tangible quality; they value brands that embed themselves in the real world with compelling legacy storytelling and immersive experiences, rather than betting on fleeting novelty. Luxury is moving decidedly from aspiration to relevance, from selling a dream to embracing reality'. Finally, Zalando's VP designer Lena-Sophie Roeper and director of product management Brian Kim, 'addressed the challenges facing the luxury sector, such as a perceived disconnect with customers and the evolving, non-linear paths to purchase'. They highlighted Zalando's 'commitment to innovation, not through technology as a standalone solution, but as an enabler of a holistic, seamless, and curated customer experience. Zalando showcased the solutions to bridge offline and online experiences and deliver personalised, immersive storytelling'. Roeper also said that 'the once captivating luxury space now feels fatigued, leaving customers yearning for deeper connection and meaning'.
Fashion Network
27-05-2025
- Business
- Fashion Network
Zalando and CNMI name luxury 'changemakers', call out value of authenticity, quality
First those honorees. Francesca Bellettini, deputy CEO of Kering, was named in the 'Brand Vision' category and she emphasised 'proactive versus reactive approaches'. She shared her perspective on 'the distinction between a compelling brand vision and a good strategy and how to ensure a vision drives culture, innovation, and longevity across Maisons'. Meanwhile Prada Group chief marketing officer and head of corporate social responsibility Lorenzo Bertelli was recognised in the Innovation category. He talked about the group's 'diverse approach to innovation', including initiatives from the Sea Beyond programme dedicated to ocean literacy and R&D in the aerospace sector. Tod's Group president Diego Della Valle was hailed in the category Craftsmanship and emphasised 'the enduring significance of 'Made in Italy' for Tod's, highlighting its continuous evolution within a modernising industry'. He provided examples of how Tod's 'balances its rich heritage with contemporary advancements, integrating new technologies and materials while preserving its artisanal foundations'. Others honoured included Giuliano Calza, creative director of GCDS with the founders and creative directors of Sunnei, Simone Rizzo and Loris Messina in the New Gen category. They talked about the relationship between fashion and new generations 'thanks to the creation of cultural moments that go behind the runways'. They discussed 'the motivation behind their projects, the capacity of balancing creativity and commerciality and the importance of the designer's personality on the brand's identity'. As for the insights presented at the event, Bain 's top luxury expert Claudia d'Arpizio emphasised that brands 'need to reaffirm the foundations of luxury and intentionally shape the industry's future'. While the demand for luxury 'remains strong, its next frontier is yet to be uncovered,' she said. 'To seize this opportunity, brands must return to the fundamentals — anchoring their promise in quality, exceptional craftsmanship, and the power to inspire dreams, all while removing barriers to access. The true challenge for the future of this industry lies in reigniting the emotional pull of luxury for consumers, while deliberately transcending traditional business boundaries'. And she called out five key focus areas that include reshaping market boundaries through the blurring of spending between goods, services, and experiences; redefinition of competition by both incumbents and tech-fuelled insurgents; shifting customer behaviours; the evolution of the distribution landscape; and the need to safeguard the luxury supply ecosystem 'amidst uncertainty, volume reduction, and a growing focus on sustainability'. Highsnobiety founder and CEO David Fischer also presented the media brand's new white paper, Luxury Redefined: Stop selling the dream, start fitting into reality. The findings include 'the shift from aspiration to relevance, where cultural fit now outweighs the traditional dream-selling approach, and the renewed importance of product quality and craftsmanship over superficial marketing. Fischer emphasised the increasing value placed on legacy and archival storytelling, contrasting with the diminishing appeal of fleeting novelty'. He explained that the report shows 'a fundamental shift: 71% of core luxury consumers say the definition of luxury has changed in the last five years. Today's consumers seek cultural authenticity and tangible quality; they value brands that embed themselves in the real world with compelling legacy storytelling and immersive experiences, rather than betting on fleeting novelty. Luxury is moving decidedly from aspiration to relevance, from selling a dream to embracing reality'. Finally, Zalando's VP designer Lena-Sophie Roeper and director of product management Brian Kim, 'addressed the challenges facing the luxury sector, such as a perceived disconnect with customers and the evolving, non-linear paths to purchase'. They highlighted Zalando's 'commitment to innovation, not through technology as a standalone solution, but as an enabler of a holistic, seamless, and curated customer experience. Zalando showcased the solutions to bridge offline and online experiences and deliver personalised, immersive storytelling'. Roeper also said that 'the once captivating luxury space now feels fatigued, leaving customers yearning for deeper connection and meaning'.
Fashion Network
27-05-2025
- Business
- Fashion Network
Zalando and CNMI name luxury 'changemakers', call out value of authenticity, quality
First those honorees. Francesca Bellettini, deputy CEO of Kering, was named in the 'Brand Vision' category and she emphasised 'proactive versus reactive approaches'. She shared her perspective on 'the distinction between a compelling brand vision and a good strategy and how to ensure a vision drives culture, innovation, and longevity across Maisons'. Meanwhile Prada Group chief marketing officer and head of corporate social responsibility Lorenzo Bertelli was recognised in the Innovation category. He talked about the group's 'diverse approach to innovation', including initiatives from the Sea Beyond programme dedicated to ocean literacy and R&D in the aerospace sector. Tod's Group president Diego Della Valle was hailed in the category Craftsmanship and emphasised 'the enduring significance of 'Made in Italy' for Tod's, highlighting its continuous evolution within a modernising industry'. He provided examples of how Tod's 'balances its rich heritage with contemporary advancements, integrating new technologies and materials while preserving its artisanal foundations'. Others honoured included Giuliano Calza, creative director of GCDS with the founders and creative directors of Sunnei, Simone Rizzo and Loris Messina in the New Gen category. They talked about the relationship between fashion and new generations 'thanks to the creation of cultural moments that go behind the runways'. They discussed 'the motivation behind their projects, the capacity of balancing creativity and commerciality and the importance of the designer's personality on the brand's identity'. As for the insights presented at the event, Bain 's top luxury expert Claudia d'Arpizio emphasised that brands 'need to reaffirm the foundations of luxury and intentionally shape the industry's future'. While the demand for luxury 'remains strong, its next frontier is yet to be uncovered,' she said. 'To seize this opportunity, brands must return to the fundamentals — anchoring their promise in quality, exceptional craftsmanship, and the power to inspire dreams, all while removing barriers to access. The true challenge for the future of this industry lies in reigniting the emotional pull of luxury for consumers, while deliberately transcending traditional business boundaries'. And she called out five key focus areas that include reshaping market boundaries through the blurring of spending between goods, services, and experiences; redefinition of competition by both incumbents and tech-fuelled insurgents; shifting customer behaviours; the evolution of the distribution landscape; and the need to safeguard the luxury supply ecosystem 'amidst uncertainty, volume reduction, and a growing focus on sustainability'. Highsnobiety founder and CEO David Fischer also presented the media brand's new white paper, Luxury Redefined: Stop selling the dream, start fitting into reality. The findings include 'the shift from aspiration to relevance, where cultural fit now outweighs the traditional dream-selling approach, and the renewed importance of product quality and craftsmanship over superficial marketing. Fischer emphasised the increasing value placed on legacy and archival storytelling, contrasting with the diminishing appeal of fleeting novelty'. He explained that the report shows 'a fundamental shift: 71% of core luxury consumers say the definition of luxury has changed in the last five years. Today's consumers seek cultural authenticity and tangible quality; they value brands that embed themselves in the real world with compelling legacy storytelling and immersive experiences, rather than betting on fleeting novelty. Luxury is moving decidedly from aspiration to relevance, from selling a dream to embracing reality'. Finally, Zalando's VP designer Lena-Sophie Roeper and director of product management Brian Kim, 'addressed the challenges facing the luxury sector, such as a perceived disconnect with customers and the evolving, non-linear paths to purchase'. They highlighted Zalando's 'commitment to innovation, not through technology as a standalone solution, but as an enabler of a holistic, seamless, and curated customer experience. Zalando showcased the solutions to bridge offline and online experiences and deliver personalised, immersive storytelling'. Roeper also said that 'the once captivating luxury space now feels fatigued, leaving customers yearning for deeper connection and meaning'.
Fibre2Fashion
19-05-2025
- Business
- Fibre2Fashion
Switzerland's Richemont's 2025 sales hit $23.97 bn amid retail growth
Switzerland-based luxury goods holding company Richemont has reported group sales of €21.4 billion (~$23.97 billion) in 2025 ended March 31, reflecting up 4 per cent year-over-year (YoY) on both actual and constant exchange rates. Operating profit decreased by 7 per cent to €4.5 billion and operating margin reduced 240 basis points (bps) to 20.9 per cent. Meanwhile, the gross margin declined by 120 bps to 66.9 per cent. Richemont has reported sales of €21.4 billion (~$23.97 billion) in 2025, up 4 per cent YoY, with strong retail and direct-to-client growth offsetting Asia Pacific weakness. Operating profit fell 7 per cent to €4.47 billion, while net profit rose to €2.75 billion (~$3.08 billion). Key milestones included the YNAP sale, Vhernier acquisition, and brand expansions. The profit from continuing operations was marginally lower at €3.76 billion, down 1 per cent YoY, while losses from discontinued operations improved to €1.01 billion primarily due to a non-cash write-down of Yoox Net-A-Porter (YNAP)—an improvement from the €1.3 billion loss reported in the first half of 2025. Overall, the group recorded a profit of €2.75 billion (~$3.08 billion) for the year, up from €2.36 billion the previous year. Diluted earnings per 'A' share / 10 'B' shares stood at €4.671, an increase from €4.077 in 2024, Richemont said in a press release. Retail sales, representing 70 per cent of total group, grew by 6 per cent YoY at actual exchange rates across all regions except Asia Pacific. Meanwhile, online retail sales, which exclude sales made by YNAP, grew by 12 per cent. In total, direct-to-client sales accounted for 76 per cent of total group sales. Wholesale sales, representing 24 per cent of the total, were 3 per cent lower than the prior year with the decline in Asia Pacific being partly mitigated by growth in other regions. For the full year, most regions achieved double-digit growth at both actual and constant exchange rates, more than offsetting the decline in Asia Pacific, particularly in China. Europe grew by 10 per cent, the Americas by 16 per cent, Japan by 25 per cent, and the Middle East & Africa by 15 per cent. Segment-wise, Alaia recorded another year of strong growth, and Peter Millar maintained its solid momentum. Overall, ready-to-wear sales rose by double-digits across the Maisons, with notably an encouraging performance from Chloe. The operating result was a €102 million loss for the year, resulting in a margin of -3.7 per cent. Within this, fashion and accessories Maisons posted a -2 per cent operating margin when excluding targeted inventory provisioning. Following a resilient first half in 2025, Richemont's sales momentum strengthened in the second half of the year, with a 10 per cent increase in Q3 and an 8 per cent rise in Q4 at actual exchange rates. Upon closing the transaction, Richemont sold YNAP to Mytheresa, which held a cash position of €555 million and no financial debt. In return, Richemont received shares representing 33 per cent of the fully diluted share capital of the newly combined entity, LuxExperience from May 1, 2025. As part of the agreement, Richemont also extended a €100 million revolving credit facility to support YNAP's corporate requirements. 'We continued to invest in future growth by further strengthening our distribution network, enhancing our manufacturing capacity, and contributing to the nurturing and preservation of unique artisan skills,' said Johann Rupert, chairman of Richemont. 'We also delivered on several strategic fronts, successfully completing the acquisition of Vhernier, and enabling Gianvito Rossi to further expand its brand globally, after having joined the Group last year. We are also pleased to have found a good home for YNAP, whose strengths Mytheresa will harness to create a new global leader in digital luxury.' 'With a renewed leadership team and governance structure, the completion of seamless management transitions across several Maisons, and our teams of talented professionals committed to creativity and innovation, we are well-positioned to guide Richemont through its next phase of development,' added Rupert. 'As I have said before, ongoing global uncertainties will continue to require strong agility and discipline.' Fibre2Fashion News Desk (SG)
