Core Insights - The article highlights the optimism of fashion and luxury brand executives regarding the future of the Chinese market, emphasizing its potential for growth despite current challenges [1][2][3] Group 1: Market Growth and Opportunities - Tapestry's Chief Growth Officer, Sandeep Seth, anticipates that 75% of the company's growth will come from international markets, with China being the largest contributor [1] - LVMH's CEO, Jean-Christophe Babin, expresses confidence that China will become the world's largest luxury market, citing a long-term upward trend in consumer spending [2] - Both executives acknowledge the importance of understanding consumer behavior and adapting to their values to capture growth opportunities in China [2][5] Group 2: Consumer Engagement and Brand Strategy - Seth emphasizes the necessity for brands to engage with consumers in their natural environments rather than through focus groups, highlighting the importance of genuine interactions [3][4] - The rise of Chinese brands in the high-end market is noted, with a significant overlap in consumer demographics between local brands and established luxury brands [5] - Babin points out that competition is not just among luxury brands but also with diverse spending options available to consumers, necessitating a multifaceted approach to brand offerings [5]

Core Insights - The China International Import Expo is viewed as a comprehensive opportunity for brands to understand policy directions, observe competitors, and showcase their strengths [1] - Executives from the fashion and luxury goods industry express confidence in the future of the Chinese market despite new challenges [1][4] - Tapestry anticipates that 75% of its future growth will come from international markets, with China being the largest contributor [1] - LVMH's watch division CEO believes that China's rapid development in new technologies will lead to increased disposable income for consumers [2] Company Performance - LVMH has ended a multi-quarter revenue decline, showing slight growth, while Hermès and Prada reported revenue increases of 9.6% and 8% respectively [4] - Kering's revenue decreased by 5%, but the decline has narrowed significantly [4] - Several brands noted a recovery in the Chinese market, particularly during the National Day holiday sales [4] Market Trends - The high-end consumer market is seeing an influx of Chinese brands, attracting attention from industry giants [7] - Tapestry's executives emphasize the importance of adapting brands to resonate with the values of the current generation [7] - The overlap in consumer demographics between local Chinese brands and international luxury brands is significant, with a 77.3% overlap noted for certain brands [7] Consumer Engagement - Tapestry's executives frequently engage with consumers in various Chinese cities to better understand their preferences [5] - The use of social media platforms like Douyin and Xiaohongshu is highlighted as a means to connect with younger consumers [5] - The competition from emerging Chinese brands is seen as a catalyst for overall market growth and innovation [7]