Is European accessible luxury failing in APAC?

As consumers increasingly prioritize discretionary spending toward investment categories such as outerwear and leather goods, accessible luxury brands are experiencing a period of renewed growth. According to data shared exclusively with Jing Daily by Lectra’s Retviews platform, mid-tier fashion brands are outperforming both mass-market and luxury segments on profitability in the Fall/Winter 2025/26 season. The Lyst Index for Q4 2025, published in February, saw Ralph Lauren climb five places, while high-street premium brand Massimo Dutti entered the ranking for the first time. “The entrance of Massimo Dutti (number 16) as a new Index entrant points to the growing demand for brands perceived as accessible, dependable, and design-conscious without leaning heavily on seasonal trend cycles,” Lyst said in a statement. Yet 2026 is shaping up to be a story of divergence: while accessible luxury is gaining ground in Europe and the Americas, Asia-Pacific is proving far more complex to navigate. SMCP’s APAC headwinds Take SMCP Group, the Paris-based owner of Sandro, Maje, Claudie Pierlot, and Fursac. The company returned to profitability in 2025, posting a net profit of 16.6 million euros ($19 million), with growth in EMEA outside France and the Americas. But Asia-Pacific revenue fell 11.9% on a reported basis — a decline driven by the group’s decision to close 65 stores in China during 2024. This contraction was not incidental. SMCP has spent the past year deliberately restructuring its China retail network — a sharp reversal from the rapid expansion that defined the previous decade, when China was widely regarded as the primary growth driver for accessible luxury. That conviction is now under serious pressure. Rise of Taobao designers Despite the sales decline, the group’s brands retain a significant digital presence in China: Maje has accumulated 30.7 million impressions on Xiaohongshu (also known as RedNote), while Sandro has 159.6 million, with the hashtag “sandronewarrivals” alone generating 4.9 million views. The group’s brands trade heavily on French girl style, a fantasy that resonates strongly with Chinese Gen Z and millennial consumers — but that same aesthetic is increasingly being replicated by domestic labels at a fraction of the price. Hangzhou-based Taobao hosts a growing number of independent designers producing high-quality pieces at prices well below those of European mid-market labels. Price-sensitive consumers are increasingly gravitating toward domestic brands on Taobao that offer comparable quality and current styling at lower price points. This shift is often framed within the broader “Guochao” — or national trend — movement, which has eroded the appeal of Western mid-market labels among younger Chinese shoppers. For brands positioned between mass-market and high luxury, the squeeze is particularly acute: they lack the aspirational pull to command premium pricing, yet cannot compete on price with domestic alternatives. Navigating China SMCP’s China expansion had been underwritten by Shandong Ruyi, the Chinese conglomerate that acquired a controlling stake in 2016. The relationship facilitated rapid market penetration and an ambitious store rollout programme. Following Ruyi’s bond default and loss of control in 2021, however, SMCP has operated under a more disciplined, globally coordinated strategy. In contrast, a new generation of European brands is gaining traction in Asia by taking a markedly different approach. French leather goods label Polène has emerged as a case in point. Rather than pursuing rapid physical expansion, Polène has leaned into digital-first storytelling, artisanal craftsmanship, and tightly controlled distribution. The leather goods brand’s flagship stores in key cities are designed as immersive spaces, often integrating local cultural elements and sustainability narratives. This curated approach not only reinforces brand identity but also aligns with the expectations of younger Asian consumers, who increasingly seek meaning, community, and values in their purchases. Polène’s pricing also works in its favor. Positioned within the accessible luxury bracket, its products are perceived as design-led and craft-driven — attributes that help sustain their value in a market where price sensitivity is rising. More established players such as SMCP face pressure from both directions: premium brands extending downward and domestic fast-fashion labels moving up. Online ecosystems Digital engagement is another point of divergence. Brands gaining ground in APAC are investing in localized content ecosystems — from social commerce to community-building on platforms such as Xiaohongshu. Success hinges less on scale than on relevance: understanding micro-trends, collaborating with local creators, and adapting narratives to regional sensibilities. Legacy accessible-luxury groups, by contrast, have been slower to adapt — relying on global brand equity and standardized marketing strategies that struggle to resonate with local audiences. Is ‘accessible luxury’ being redefined in Asia? In APAC, accessibility is no longer just about price — it is about emotional connection, brand clarity, and experiential value. As Dharpan Randhawa, founder of global partnerships agency Talisman, told Jing Daily: “The brands that win [in China] embed themselves into performance, innovation, or fan experience. They contribute something tangible.” For European players built on volume, adapting to these new expectations may prove their most significant test. As SMCP continues its restructuring, domestic Taobao labels proliferate, and brands such as Polène and Songmont deepen their foothold, the region is fast becoming a proving ground for what accessible luxury can mean in its next chapter.

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Is European accessible luxury failing in APAC?