Why Chinese Shoppers Are Choosing Local Luxury Over LVMH and Gucci

[VegetasHairline]

Told you he was still around lurking and dapping posts. You tried to tell me I'm crazy.
@King_Kamala61

 

[King_Kamala61]

Told you he was still around lurking and dapping posts. You tried to tell me I'm crazy.
@King_Kamala61

my bad breh...my bad

 

[☑︎#VoteDemocrat]

 

[010101]

swag sold separately*

 

[Womb Raider]

The chinese are smart and clearly have found a way despite western influences

Look at this fakkit

 

[Vandelay]

I know China is known for bootlegs, but there's no reason a luxury Chinese brand can't emerge. The culture kind of lends itself to luxury from the history down to the writing. Make a bag with a fly ass Chinese symbol on it, with some obscure historical connection and that brand can get off Canal Street.

 

[papa pimp]

I know China is known for bootlegs, but there's no reason a luxury Chinese brand can't emerge. The culture kind of lends itself to luxury from the history down to the writing. Make a bag with a fly ass Chinese symbol on it, with some obscure historical connection and that brand can get off Canal Street.

There are plenty of Chinese luxury brands but breaking into the Western market is a different matter.

 

[L. Deezy]

Interesting.. I swear the last time I was in Paris, Asians had stores like LV on shutdown. Meaning, stores would be closed down for a bit so Asian groups could personal shop.

 

[Vandelay]

There are plenty of Chinese luxury brands but breaking into the Western market is a different matter.

Yeah, I'm aware. That's why I called out the perception problem. Luxury now is nothing more than meeting a baseline build quality and marketing. It's why I generally don't give a fukk what the brands are now outside of how it looks and whether or not it falls apart days/weeks after I get it from the store.

 

[papa pimp]

Yeah, I'm aware. That's why I called out the perception problem. Luxury now is nothing more than meeting a baseline build quality and marketing.

The Western fashion houses have 100 years of built in mythos that is really hard to overcome. Throw in the fact the people who push cool (Black people) are aligned and its just a tough tough battle.

 

[Vandelay]

The Western fashion houses have 100 years of built in mythos that is really hard to overcome. Throw in the fact the people who push cool (Black people) are aligned and its just a tough tough battle.

Yeah, they box out competitors. China needs to focus on East Asia, and eventually the ubiquity is too hard to deny.

 

[King_Kamala61]

The chinese are smart and clearly have found a way despite western influences

bytch ass ain't negging no more. All dat talk bout belt 2 asses...well I put dikk2Asses

 

[☑︎#VoteDemocrat]

Kering must kick Gucci habit, chief Luca de Meo tells staff

Boss sets out in memo need for luxury group to reduce ‘over-dependency’ on Italian brand

www.ft.com

Kering must kick Gucci habit, chief Luca de Meo tells staff
Summarize
Boss sets out in memo need for luxury group to reduce ‘over-dependency’ on Italian brand

A model wearing oversized sunglasses, large earrings, and a plush light fur coat walks the Gucci Cruise 2026 runway. Shelves with handbags are in the background.
Gucci has been the main engine of growth for French-based Kering © Alessandro Levati/Getty Images for Gucci
Kering needs to reduce “over-dependency” on its top brand Gucci and downsize its entire retail network, the luxury group’s new chief executive Luca de Meo has said in a memo.

De Meo used the internal memo circulated in early October to outline a multiyear plan to revive Kering’s fortunes. The memo states that a turnaround at Gucci, Kering’s dominant brand by sales and profit, remains key, but broader-based change across the group is also required.

Shares in Kering fell 3.2 per cent in trading in Paris on Wednesday to a market value of €37bn, following a strong rally since de Meo’s appointment was announced last spring. Like-for-like group sales have fallen 12 per cent in the first nine months of 2025 to €11bn.

The turnaround plan, which de Meo has dubbed “ReconKering” and was formulated in September, gives the group 18 months to resize Kering’s operations and return all brands to growth. “Top financial performance” should be restored while brands should be repositioned within 36 months, reads the memo, a copy of which was seen by the Financial Times.

Luca de Meo adjusts a microphone at a podium during Kering’s annual meeting.
Luca de Meo became Kering CEO in September © Benjamin Girette/Bloomberg
Kering’s profitability has taken a significant hit because operating expenses and investment continued to expand “significantly” even as sales cratered, resulting in “decreased return on capital, higher net debt, and value loss on Kering share price”, de Meo wrote.

Kering is heavily reliant on Gucci, which accounts for about half of group sales and two-thirds of profits. But the Italian brand has fallen out of fashion and has taken a heavy hit after over-concentrating on the Chinese market, which is now depressed. Turnaround efforts stalled as the brand cycled through creative designers and chief executives in recent years.

De Meo said Kering should reduce this over-dependency by reigniting Gucci while also developing its other brands: Saint Laurent, Bottega Veneta and Balenciaga.

“These preliminary hypotheses, which may have evolved since, have been broadly communicated to employees [ . . .] to establish a shared understanding and outline the foundations of Kering’s future strategic plan,” the group said in a statement on Wednesday. It added that a new strategic plan would be announced in spring 2026.

All Kering’s brands are undergoing a strategic review led by consultancies Bain and BCG since de Meo’s arrival, according to several people with knowledge of the situation. Lossmaking McQueen is expected to be among the first to shed jobs as de Meo and his team work out the long-term plan for the fashion house, those people added.

A large Balenciaga advertisement covers the front of a closed store at a rainy shopping mall, with people walking by holding umbrellas.
Luca de Meo said the group’s other brands such as Balenciaga should be developed © Qilai Shen/Bloomberg
The memo includes what de Meo dubs “First 100 day no-brainer” actions to reduce debt and financing costs at the group. Investors have grown increasingly concerned over high-priced acquisitions and real estate deals.

A “multi-brand task force” should be set up to reduce excess inventory, while products and pricing need to be rethought brand by brand, the memo adds. Marketing spend needs to be reviewed and made more efficient, including renegotiating terms with suppliers.

The note also said that Kering’s retail network needed to be downsized and leases renegotiated.

Line chart of Share prices rebased in € terms showing Kering shares have rallied since Luca de Meo was confirmed as CEO earlier this year
“The full retail network needs to be analysed to identify underperforming locations and rationalisation opportunities […] On the other hand, qualitative wholesale exposure can be selectively enhanced,” de Meo wrote.

Kering should also restructure its budget process and be more conservative around costs and investments, the CEO said.

 

[sayyestothis]

The chinese are smart and clearly have found a way despite western influences

Lol