Luxury brands shine bright in China

A growing number of international fashion and footwear brands are posting robust sales growth in China as affluent consumers continue to spend on brands with distinctive positioning and disciplined retail strategies.

Ralph Lauren Corp, Tapestry Inc and Birkenstock Holding all reported double-digit growth in the Chinese market in their latest quarterly results, suggesting demand remains resilient for brands that combine premium positioning with localized marketing and product offerings.

The results contrast with a broader luxury sector that has struggled with softer consumer spending in China over the past two years.

Ralph Lauren delivered one of its strongest performances globally in the first quarter ended June 27, with revenue in China surging more than 40 percent from a year earlier. Asia revenue increased 24 percent, driven by growth across all major markets, while North America also posted double-digit gains.

Ralph Lauren executives said during an earnings call that they do not expect quarterly growth above 40 percent to continue, but forecast low double-digit growth in China for the full fiscal year, underscoring the market's increasing strategic importance.

The Chinese market accounted for about 10 percent of Ralph Lauren's global revenue in the latest quarter, compared with roughly 2 percent before COVID-19.

The New York-based company attributed the performance to strong demand for womenswear and handbags, brand marketing and a disciplined retail strategy focused on six key cities. Management also confirmed Ralph Lauren will participate in the China International Import Expo for the first time later this year, signaling further investment in the market.

The company has also invested heavily in brand building. Recent campaigns have included a Beijing polo tournament, Wimbledon-themed marketing as the tournament's official outfitter and Ralph's Coffee shops inside select stores, offering consumers a lower-cost entry point into the brand.

Women's apparel, outerwear and handbags all grew by more than 20 percent globally during the quarter, outperforming the broader business.

Tapestry Inc, the New York-based owner of Coach, Kate Spade and Stuart Weitzman, also reported another strong quarter in China. The company said Asia-Pacific revenue rose 19 percent in both the fiscal fourth quarter and full year ended June 27. Sales in China increased 28 percent during the quarter and 35 percent for the full year.

Coach remained the group's primary growth engine, posting double-digit revenue growth in every quarter of fiscal 2026. Demand for leather goods remained particularly strong, helping lift average handbag selling prices by the mid-double digits.

The company added more than 2.5 million new customers globally during the quarter and about 11 million during the fiscal year, with Generation Z accounting for about 35 percent of new customers.

German footwear maker Birkenstock also continued to outperform in China despite weakness across parts of the global footwear sector.

For the fiscal third quarter ended June 30, revenue increased 13 percent to 720 million euros ($835 million), while Asia-Pacific sales rose 18 percent, or 23 percent on a constant-currency basis.

Revenue in China surged 50 percent from a year earlier, making it Birkenstock's largest market in the Asia-Pacific.

The results suggest that international brands with differentiated positioning continue to find growth opportunities in China, even as discretionary spending remains uneven.

"Demand for quality fashion has not disappeared," said Cheng Weixiong, a fashion industry analyst.

Cheng said Ralph Lauren's classic aesthetic, broad price architecture and disciplined discount strategy resonate with the country's middle-income consumers seeking versatile, premium apparel without the volatility seen in the broader apparel market.

wangzhuoqiong@chinadaily.com.cn