Apr 15, 2023 - Economy & Business
China's reopening economy is booming — and luxury brands are cashing in
China is booming — and French luxury houses like LVMH and Hermès are reaping the benefit.
Why it matters: China has helped deliver a "blowout quarter" for luxury companies, per Bloomberg. It's also firing on all cylinders domestically, with manufacturing growing at the fastest pace in more than a decade.
What they're saying: "The reopening has come off more positively and with less hitches than anyone had hoped," Morning Consult economic analyst Jesse Wheeler tells Axios. "Consumers are out there spending."
- With Chinese adults saving almost one in three earned dollars in 2022, "there’s a lot of excess savings in consumers’ bank accounts," says Wheeler.
The bottom line: That feeds into everything from domestic box-office grosses to international haute horlogerie sales.