A series of changes, caused by the slowdown of some markets and currency fluctuations, have altered the geography of global luxury, but the monobrand’s openings will not stop. To make a difference, rather than quantity, is the attention to like for like. With the belief that store closing is not always negative and the hope that the recovery should come after the US elections.
Despite the economic slowdown, China is still one of the most attractive market to invest in; however, any company who wants to expand needs to follow a strategy according to its brand. “A brand which is not yet known in Asia has the opportunity to get a commercial space that would have been impossible to reach in the past” Andrea Bonardi said, as Managing Partner at Texere Advisors. The economic Chinese slowdown had a significant impact on retail sector, which witnessed a decrease from 20-30% to 10%.
Andrea Bonardi, who is currently working on Chinese projects for prestigious brands like Fabiana Filippi, Frette and Moroso, explains: “different market conditions forced consumers to reduce their expenses in luxury products in favour of high-quality cheaper items”. Although Chinese landlords, The economic crisis has reduced the appetite of Chinese landlords pushing them to think twice before committing to any investment in new brands event though they understand the importance of renewing their offer in malls.
“The need to consolidate the existing retail network is opening opportunities for new brands to enter the market directly since malls are looking for new brand to attract more demanding customers”, Bonardi says.