China’s domestic travel retail business continues to surge. Luxury brands are investing in this fast-growing segment. Some brands are making it a part of their China strategy.
The key drivers to domestic travel retail growth are China’s investment in building new airports and that more Chinese can afford to travel. China is likely to add 100 new airports in the next decade in emerging cities like Chongqing and Wuhan, according to the Global Business Travel Association.
German fashion brand Aigner looks to capitalize on this momentum and has declared that China’s domestic travel retail will be central to its China strategy.
“Tentatively, especially for the next year, we expect to be growing, especially for our China strategy in terms of domestic travel retail,” said Aigner head of international sales Mark Oliver Schellbach.
Aigner will open more stores in domestic and international airports in China. The brand is banking on strong sales to come from the high level of awareness of its brand in China.
“Aigner has been well represented in China for over the past decade so there’s a huge demand for our merchandise there,” Aigner President and CEO Sibylle Schön told The Moodie Report, adding that Aigner opened eight stores in second-tier cities in China last year.
The brand has designed products exclusively for its travel retail business. “Our travel retail collection is becoming a significant part of our collection and is selling well in those points of sale,” Schellbach said.
image credit: christopher chan