Where do we go from here?

That is one of the key questions the luxury, fashion and beauty worlds are pondering now that China has reopened following the pandemic-induced lockdowns that impacted the country – and affected the rest of the world as well.

Little about the industry, and the way it does business in China, is the same as it was prior to 2020. Now companies must determine how to move forward. Hence the theme of this October’s Global Fashion & Beauty Summit, “A Reshaped World.”

The one-day Summit will touch on topics of key importance to the invited audience, including the impact on the industry of China’s reopening; the outlook for beauty and wellness, both in China and globally; what emerging markets might help drive growth in the years ahead; the potential of a global recession and how it will affect the sector; the next phase for sustainable business practices as climate change worsens; the outlook for streetwear, and Chinese designers to watch.

Leading luxury, fashion and beauty companies registered double-digit sales increases even as China remained in lockdown, creating huge anticipation for what would happen once Chinese consumers were able to shop for those products once again and, perhaps, travel like they did pre-COVID-19.

The thinking was that Chinese consumers would behave just like those in the West – after months of being denied the chance to buy fashion, beauty and luxury products in stores, they would go on a spending spree to make up for lost time and treat themselves. The hope was that they also would, like American tourists, flood Europe and the U.S. in even greater numbers than before the pandemic.

So far, neither has happened.

Yes, China remains a vital market for luxury, fashion and beauty brands. Yes, Chinese consumers continue to buy. Yes, there are still lines of shoppers outside some key luxury stores and malls remain packed. And, yes, Chinese consumers are traveling again.

But the much-hoped for boom has yet to arrive as shoppers remain cautious. Some of the larger Western beauty groups actually saw softer sales in the first quarter and are only now beginning to register a recovery. And the Chinese are traveling again – but primarily within China or to nearby countries. Few are venturing to Europe or the U.S.

It is, as L’Oreal CEO Nicolas Hieronimus recently told analysts, a “fluid” situation. It’s likely to remain that way for some months against a backdrop of slower economic growth, not just in China but globally, impacting the country’s manufacturing supply chain; a softer real estate market; potential deflation, and high unemployment among young people.

So there could be no better time to hold the Global Fashion & Beauty Summit in Chengdu than now, given the eagerness for the industry to chart its way forward in the months and years ahead.

I look forward to seeing you at the Summit.

James Fallon
Editorial Director, WWD