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Quarterly Trends Report

Consumer trends report Q2 2022: China’s luxury industry after Omicron-driven shutdowns

  • Public Equity
  • Consumer
  • Greater China

Luxury brands quickly dialled back expectations for their China business after the country imposed its latest round of COVID-19 shutdowns, but lessons from previous closures could seemingly soften the blow. As we enter into Q3 and shoppers begin to fill the malls again, this Quarterly Trends Report explores how the lockdowns could affect Q2 through the year-end.

Shanghai suffered the brunt of China’s latest outbreak, the country’s worst since the pandemic started in early 2020.2https://www.cnbc.com/2022/06/15/luxury-brands-say-chinas-latest-covid-wave-whacked-consumer-demand.html Residents were ordered to stay at home and businesses were forced to close for over two months from March until June. As the beginning of the spring/summer fashion season, the timing could arguably have not been worse. Shanghai also represents 10-15% of China’s entire luxury business and handled a fifth of Chinese freight last year, a director at LVMH Fashion (Shanghai) Trading Co Ltd told Forum.

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