Chinese consumers are increasingly seeking luxury through prestige skincare, rather than designer bags, as the country’s property downturn and weaker confidence impact spending habits.
Luxury Spending Evolves
Analysts note that recent earnings show a shift in China’s aspirational middle-class spending towards categories like prestige beauty, including luxury skincare, make-up, and perfume.
While beauty specialists like Estee Lauder and L’Oreal report stronger sales of top-end lines in China, luxury groups like Hermes and Louis Vuitton owner LVMH see demand as largely flat to slightly firmer.
Research from consultancy Oliver Wyman found that ‘intention to spend’ among affluent Chinese consumers was significantly higher for prestige beauty than for leather goods, with 37% compared to 4% saying they intended to spend more in the next year.
L’Oreal CEO Nicolas Hieronimus stated that luxury and dermatological skincare brands are growing at around 7% in China, with some top-end marques doing even better.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
