Why American luxury fashion doesn’t sell in China – an ‘ordinary’ image, weak marketing, and few social media influencers

Chinese see US fashion brands as lacking cachet, and because their marketing is not tailored to the China market they struggle to project the right image

To improve, they need to adapt to the widespread popularity of mobile platforms and live-streaming. Streetwear offers a chance for them to find new fans

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US brands, struggle to compete with their European counterparts when it comes to the Chinese market. Photo: Jeff Hahn

Published: 5:15am, 20 Oct 2020Updated: 5:05pm, 20 Oct 2020

“Any luxury brand that’s not doing well in China is not doing well, full stop.” So says Mario Ortelli, a luxury brand consultant who doesn’t mince his words.

While French, Italian – and to a lesser extent – British brands have been using their sales in Shanghai, Beijing and increasingly Hainan to bankroll what has been an otherwise very difficult year at home, American brands have been mostly left out in the cold by China’s shoppers.

According to Parklu – a Shanghai-based KOL (key opinion leader) management and analytics firm – Prada, Chanel, Dior, Valentino and Burberry were the five most-watched collections in China during the recent fashion month. Notably, not one American brand hit the top 20.

Is this because of US President Donald Trump’s antagonism towards China, or simply because US brands aren’t innovating as quickly and as creatively as those across the Atlantic?

European luxury fashion houses like Balenciaga are doing well in China, unlike many US brands. Photo: Reuters

Gu Xiaofeng, a fashion marketing director who lives between California and Shanghai, thinks it is largely the latter.