We are all to familiar with news of luxury retailers slowing down their rate of expansion in China. Now there is data to show the expansion may be less than expected.
According to a recent Knight Frank China Retail Market report, over 60 percent of the 45 international retailers it tracked missed their target number of store openings in 2013. The reasons varied from “the difficulty of finding good quality sites; the slowing down of expansion plans in the face of tightening government policies on anti-corruption (or ‘gifting’); or a change in strategy for internal reasons.”
What is evident in terms of expansion is that luxury is decelerating while fast fashion is accelerating in China.
About 65 percent of luxury retailers missed their expansion targets. The only luxury retailers who exceeded or met their targets, among those tracked, are Ralph Lauren, Louis Vuitton, Ferragamo, Graff, Piaget, Tiffany and Co, and Chanel. Meanwhile, all fast-fashion retailers, except Uniqlo, exceeded their targets.
Source: bart, Knight Frank / Woods Bagot