Despite China’s economic slowdown and a fragile property market, luxury home brands are doubling down on their investments in the world’s second-largest economy. Companies like Versace Home, Dolce & Gabbana Casa, and Frette are expanding their retail presence in key cities like Shanghai, Beijing, and Chengdu, betting on the resilience of China’s high-end consumers.
A Strategic Pivot
Luxury Living Group, the licensee for Versace Home, is in charge of planning to open new mono-brand stores and multi-brand locations in both tier-one and tier-two cities. The group’s CEO, Andrea Gentilini, highlights the importance of enriching the customer experience through flagship locations and leveraging digital platforms like WeChat and Red to engage a younger, affluent demographic.
Salone del Mobile.Milano, the prestigious Italian furniture fair, is also intensifying its focus on China. Recent exhibitions in Shanghai aim to bolster the presence of Italian design and strengthen relationships with Chinese consumers. While Italian furniture exports to China have declined slightly, the fair remains committed to the market, recognising its potential for growth.
The Allure of the Chinese Market
Luxury brands are drawn to China’s burgeoning luxury market, driven by a growing affluent class and a desire for high-quality, branded products. Companies like Frette, Cassina, and Roche Bobois are expanding their retail networks and forging partnerships with local players to capitalise on this opportunity.
Despite economic headwinds, industry experts remain optimistic about China’s long-term potential. As the country continues to urbanise and its middle class expands, the demand for luxury home goods is expected to grow.
However, brands must navigate a complex landscape, adapting to evolving consumer preferences and government policies. By understanding the nuances of the Chinese market and investing in strong customer relationships, luxury home brands can weather the storm and emerge stronger.
