After almost three years of strict Covid regulations, millions of Chinese are ready to spend again.
What better way, then, than to see in a year of prosperity under the auspicious rabbit zodiac sign than with a £29,000 gold and diamond-encrusted rabbit watch by Dior, or an £850 floppy-eared hat from Burberry.
As millions bid farewell to the ferocious tiger and prepare to for a year of peace and wealth under the new zodiac sign on January 22, brands are seeking to make a fortune. The luxury streetwear brand Ambush has sold out of its £380 pink bunny balaclavas. Others are offering furry trainers and handbags.
Fashion houses have often drawn on the lunar calendar for inspiration, but observers say they may be doubling down on the trend this year to capitalise on the easing of Covid restrictions.
Mimma Viglezio, a fashion consultant, said: “The Chinese are getting out and shopping for the first time in two years, so marketing is saying: ‘Let’s give them something that they will love.’ It’s a no brainer.”
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Fashion houses suffered when China’s wealthy shoppers, who used to flock to Paris or Tokyo to pick up the latest designer must-haves, were restricted to the mainland.
Chinese consumers’ share of the global market fell during the pandemic, from 25 per cent in 2019 to 21 per cent in 2021. Share prices of global luxury brands jumped last week after Beijing announced that it would relax travel restrictions from Sunday, allowing Chinese tourists to once again do their shopping abroad.
However, China’s domestic luxury market boomed under Covid-19 restrictions, doubling between 2019 and 2021 to 471 billion yuan (£57 billion) as brands bolstered their presence within the country. Brands such as Louis Vuitton and Coach opened new flagship stores and hosted large fashion shows to reach consumers unable to go abroad.
In 2021 Taikoo Li Qiantan, a 120,000 square metre shopping centre, opened its doors in Shanghai to host western brands including Balenciaga, Bulgari, Cartier, Gucci, Hermès and Tiffany & Co.
Staff have increasingly been cultivating relationships with Chinese customers used to shopping overseas.
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Research conducted by Hong Kong-based consultancy Oliver Wyman suggested that 70 per cent of these wealthy consumers used sales assistants to facilitate purchases, while 40 per cent communicated with sales staff at least once per week.
One Shanghai shopper said she had visited boutiques around the world for years, but now feels she gets the best service in China. “When I would go to Paris, I couldn’t ask the Paris sales people to keep a bag for me, but now here we can,” she said.
Analysts are predicting that international shopping is unlikely to reach pre-pandemic levels, when Chinese customers bought 70 per cent of their luxury goods overseas.
“It won’t go back to 70 per cent,” said Jonathan Yan, from Roland Berger, a consultancy in Shanghai. “I’m sure there will still be a portion of luxury spending happening in other countries, because it’s natural people like to shop when we travel, but it will be more like 50-50.”
It is not only fashion brands that are increasingly trying to court the Chinese market. Every Chinese new year Apple releases limited-edition airpods, with an engraving of that year’s animal on the case. This year, Davidoff has also released bunny-emblazoned cigars.
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However, according to Dal Chodha, a fashion consultant and lecturer, there is a “lack of nuance and sophistication in such endeavours”. “The products… have no soul. They are interchangeable and wan,” he said.
Viglezio concurred: “I don’t think it’s great fashion, I don’t think it’s very appealing. I think companies should do it in a way that’s very much linked to their own style, not just add a rabbit to a sweatshirt.”
