New Luxury Made in ChinaAdvanced

When Bernard Arnault, the billionaire head of LVMH, flew into Shanghai last year, most observers expected a routine visit. He could have toured Louis Vuitton, Dior, and his other flagship brands, checked their new displays, and then moved on. Instead, he did something that surprised the luxury world: he went shopping for Chinese labels.

At Qiantan Taikoo Li, one of Shanghai’s newest high-end malls, Arnault reportedly stopped at Songmont, a minimalist leather brand, and bought two bags. Later, he visited Laopu Gold, a Chinese jeweler a few doors from Cartier and Van Cleef & Arpels, and quietly praised the pieces as “exquisite” and “interesting.” For a man who built his fortune on Western heritage brands, it was a small but powerful signal. The future of luxury in China may no longer belong only to Paris and Milan.

China’s luxury market, worth around $49 billion, is now going through a painful adjustment. The wider economy has slowed, youth unemployment is high, and consumer confidence is weak. Bain & Co. estimates that luxury sales fell by as much as 20% last year, the sharpest decline in more than a decade. Global giants have felt the impact as investors rethink the “China will always grow” story.

Yet even as foreign brands struggle, a new group of Chinese premium labels is expanding quickly, especially online. Research firm BigOne Lab reports that domestic brands in handbags, fashion, beauty, fragrance, and jewelry have all outpaced well-known foreign rivals in e-commerce sales growth over the last two years. On Tmall, China’s biggest online marketplace, Laopu Gold recorded roughly $630 million in sales over twelve months, while Van Cleef & Arpels earned around $57 million. Mao Geping Cosmetics more than doubled Bobbi Brown’s revenue.

Price is clearly part of the appeal. ICICLE’s cashmere “Aircoat” usually costs between about $1,100 and $2,800, while Chinese shoppers often compare it with a Max Mara coat priced at more than $4,200. Songmont’s bucket bag, often described as a more affordable alternative to Hermès’ Picotin, sells for a fraction of the French original. For middle-class consumers who feel financially squeezed, these differences are hard to ignore.

But this is not just a discount story. Many Chinese brands are positioning themselves as “new luxury,” not cheap copies. They invest heavily in design, storytelling, and a distinctly Chinese identity. Songmont talks about “Eastern aesthetics” and designs its stores to echo the soft curves of calligraphy. To Summer, a fast-growing perfume house, builds its scents around local ingredients like tea and osmanthus and uses porcelain from Jingdezhen, China’s historic ceramics capital. ICICLE draws inspiration from Confucian ideas of harmony and restraint, preferring quiet, simple lines over loud logos.

This cultural focus is winning over a younger generation that no longer automatically worships Western labels. For these shoppers, a brand feels more meaningful when it reflects their own history and daily life. One thirty-year-old finance worker in Shanghai says she once chased Hermès and Tom Ford because she thought they represented success. Now she carries a Songmont bag and uses Mao Geping makeup, saying she only wants items she truly likes, not products that simply display status.

Chinese brands are also smart about digital marketing. Instead of relying only on celebrity ambassadors and glossy billboards, they build communities on social media and streaming platforms. Songmont, for example, runs a podcast about the lives of urban women, focusing on self-worth and different life choices rather than pure luxury. This kind of content feels closer to real life and helps local labels form deeper emotional connections than many global campaigns.

Behind the scenes, “Made in China” is changing. For years, the phrase was linked to cheap, mass-produced goods. Now companies like Songmont, Laopu Gold, and Mao Geping highlight craftsmanship and slower production: full-grain leather and gold-plated hardware, detailed filigree and colored enamel, and makeup techniques demonstrated on Chinese faces so that products match local skin tones and beauty standards.

There are limits, however. In terms of scale, Western houses still dominate. Euromonitor data show that the ten best-selling luxury brands in China are all foreign, and no Chinese player has more than a tiny share of the overall market. Analysts also warn that if the wider economy continues to struggle, demand for both foreign and domestic luxury could weaken further. True luxury needs rising incomes and a confident middle class, and both are under pressure.

Even so, the direction of change is clear. Chinese shoppers are slowly rewriting the definition of luxury. Instead of chasing famous Western logos at any cost, more of them are choosing products that combine high quality, cultural pride, and reasonable prices. For global brands, this shift is a warning. For local labels, it is an opportunity to prove that modern luxury in China can be proudly—and successfully—Chinese.

1. When you hear the word “luxury,” what specific brands or products come to your mind?
2. Are people interested in luxury brands because they think they represent “success?”
3. Do you think Korean brands can be considered luxurious?
4. What feels more important to you: a famous luxury logo or good design and quality without a logo?
5. Have you ever been disappointed after buying an expensive luxury item?
6. Do you think younger Koreans today are more interested in global luxury brands or in unique local brands?