How are unique, bespoke brands adapting in China’s luxury slump?

Amid the current luxury downturn, independent and made-to-order luxury brands in China are suffering from the same stressors in the broader luxury market. However, is hope is on the horizon as recent studies (like Bluebell’s 2024 Asian Lifestyle Consumer report) show that affluent clients are looking for value, uniqueness, bespoke offerings and even emotional value? “The market has definitely changed and has a massive slowdown. Everyone is seeing that, mostly those hurting are medium and small businesses,” says Shanghai-based Jordanian jeweler Lama Hourani. “On the other hand, client behavior is shifting, towards emotional spending versus just casual spending.” Fatigue of mass-market luxury goods seen everywhere is prompting a desire for exclusivity and personalization among some more independent-thinking affluent shoppers. And as more clients look for something special, timeless, but different – custom touches are a way to go. “As an independent fashion house, we are generally exposed to the same market dynamics as larger players around us,” says, Paris-Shanghai fashion designer Fang Yang, who designs for and founded By Fang couture and RTW lines, offering timeless design with avant garde, Asian-touch points. “Nonetheless,” Fang adds, “a limited scale enables agility and perhaps more ‘intimate’ relationships with our clients proving to be essential in such times.” So, despite the small-scale marketing budgets and customer bases, the brand’s direct relationships with its clientele allow quick adaptation to changing ways. This agility can be an advantage in a volatile market. “Now, the client is customizing more,” Hourani adds. “And, you know, instead of spending small on small pieces, they’re making more important pieces or more unique pieces. The only thing is that it’s unpredictable.” In the tapestry of global jewelry design, Hourani (on her second stint living in China) stands out as a master storyteller. Her most popular collections, such as the Siderock or the latest Onda.tude ones (inspired by powerful rhythms of wavelengths that fuel human connections), are meticulous compositions of the world as she sees it – rich in history, folklore, and a profound sense of emotion. Since launching her eponymous line in 2010, Hourani crafts each piece as a fragment of a larger story. For couples’ engagement pieces, her Chinese clients are increasingly turning to customization and “more memorable, unique pieces.” In times of difficulty, margins admittedly run smaller, and clients are less confident in splurging often, and smaller businesses are strained; but they may also benefit in the long run as consumers seek indie designer brands as an alternative to the big players. Client relationships and servicing are all important. This is evident at both Hourani and Fang’s businesses. The latter’s China-based activities as well as international trunk shows in London, Paris and the Middle East, make the most of an intimate approach that’s a panacea to mass luxury. “Our private, ‘boutique’ experiences (including her Shanghai villa) also seem to be an advantage these days compared to too commercial or large-scale retail propositions,” she says. While Fang concurs that China’s current economic woes are less favorable to selling evening couture collections, “Our ready-to-wear collections have proven to be a good alternative to clients being more budget conscious,” she says. For Hourani, broadly speaking, there are two types of clients: “Those who value traditional luxury for investment, and those who seek originality and spurn conventional labels. Over the past 13 years in China, I’ve seen clients evolve dramatically, jumping light years in information, awareness, and appreciation for design.” “My clients have always sought unique pieces, unswayed by the social pressures to conform to well-known brands,” says Hourani, who is known for melding an eclectic mix of influences, from intricate motifs of Byzantine architecture to contemporary art and natural stone formations. “They are art enthusiasts with a passion for cultural experiences, who see luxury through a personalized lens. In a big country like China, this niche market is significant. These clients value individuality and have a strong preference for vibrant, colorful gemstones,” she adds. As the luxury market in China fluctuates, independent and made-to-order brands are positioned to attract consumers seeking more personal and meaningful luxury items. This shift emphasizes a growing segment of buyers who prioritize uniqueness and craftsmanship over famed brand names only. But China-based brands are also looking increasingly overseas and across borders. Hourani’s strategy, for example, includes a focus on exhibitions and clients overseas & trunk shows to expand her market. Fang has also rebalanced her brands’ focus to accelerate the development of their bases in Paris and Riyadh, Saudi Arabia. “We take the current context as an opportunity to better understand and to leverage our development potential outside of China,” she says. Indie brands take note, this roadmap is likely to be more and more common.

Bespoke luxury: China’s antidote to brand fatigue

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Bespoke luxury: China’s antidote to brand fatigue