Voice of America has a new video on how the luxury industry is reacting to China’s slowdown, and experts interviewed state that while brands are optimistic about the long-term future of the market, they are still taking steps to adapt.
According to Digital Luxury Group researcher Pablo Mauron, brands are “still quite confident” despite China’s slowing GDP growth and government corruption crackdown. According to him, “They keep investing massively in China, opening new stores. In Shanghai, we have new malls, new luxury malls opening every month almost.”
However, this certainly doesn't mean they’re not adapting to changes in the market. According to Ken Grant, the head of FDKG Insight, luxury brands would be wise to head into the “affordable” sector in order to court China’s rapidly growing middle class.
"Luxury brands are all trying very hard to find new customers, which means they need to innovate in what they do, they need to introduce new products,” he says. “Perhaps products that they did not traditionally have, they are expanding their lines and maybe introducing some lower price point products to attract new consumers.”
Watch the rest of the video above.