China continues to be the leading market for luxury brands, driving demand as the market recovers from the pandemic and the latest wave of lockdowns. By the end of 2022, China accounted for more than 40% of all luxury brand openings despite tight retail restrictions, according to Savill research.
However, such figures are not record-breaking for the Chinese market and rather demonstrate temporary difficulties due to a decrease in buying activity. China accounted for 55% of all luxury openings in 2021.
“This was not unexpected given the acceleration in the pace of store openings a year earlier and weakening tenant confidence amid rolling closures seen in parts of China throughout 2022,” the report said.
The total number of stores in the global market increased by 11% in 2022. Due to a temporary slowdown in retail activity in China, more openings were made in other Asian markets and some European countries.
Thus, Europe accounted for 23% of new discoveries, and the annual increase was 77%. The recovery was supported by international tourists returning from the pandemic and lower rental rates in some key trade corridors. In Asia, excluding China, luxury brand store openings are up 12% year-on-year.
