While broader economic indicators in China paint a cautious picture, the luxury goods market appears to be defying the odds. Consumers are opening their wallets for high-end clothing, boosting the sales of global brands like Ralph Lauren, Coach, and Hermès.

Marking the fourth consecutive month of decline, China’s inflation fell by 0.8 per cent in January. Demand for luxury products is growing in the country despite the low base set by last year’s COVID shutdowns. 

Luxury brand’s Ralph Lauren’s sales surged by 30 per cent in January while those of Coach’s parent company Tapestry grew by 19 per cent. Hermes’ sales from Asia operations increased by 19 per cent during the month. 

This growth in sales was attributed to various factors including a pent-up demand and increasing spending on travel by Chinese tourists.