Luxury brands capitalize on 'debut economy' to tap China market

SHANGHAI -- As China actively promotes its "debut economy" to spur consumption, more international luxury brands are seizing the opportunity to open new stores, host exclusive events and launch new products in the world's second-largest consumer market.

Along Shanghai's iconic Huangpu River, century-old Italian luxury brand Loro Piana is hosting its first-ever exhibition anywhere in the world, including Italy, titled "If You Know, You Know. Loro Piana's Quest for Excellence."

Spanning more than 1,000 square meters across three exhibition halls, this immersive exhibition is also the first exhibition featuring traditional crafts and fashion brands for the Museum of Art Pudong.

"As an international city, Shanghai has always been at the forefront of the global fashion and luxury industry," said Zheng Jianhua, managing director of Loro Piana China, when commenting on the exhibition's location.

Shanghai is not only an important gateway for brands to enter the Chinese market, but also a significant stage for luxury brands to innovate and launch new products globally, Zheng said.

Zheng additionally highlighted the importance of the Chinese market and hailed its policies for further opening up and improving the business environment.

"The Chinese market is crucial for Loro Piana," she said. "China's policies to stabilize foreign investment in recent years have further boosted our confidence in this market."

Zheng was optimistic about the brand's future in China and noted that the brand is glad to see and support the "debut-economy" strategy. The "debut economy" is an innovation in business models and also an important manifestation of global brands' deepening integration with the Chinese market, she said.

Loro Piana is not alone in capitalizing on the "debut economy." In Chengdu, capital city of Sichuan province in Southwest China, luxury jeweler Tiffany & Co. has opened its newly refurbished triplex flagship store, the first in the country, exemplifying its commitment to the Chinese market. This store includes the only Tiffany's watch salon in China.

Earlier this year, Italian luxury outerwear group Moncler opened two new boutiques in Shanghai and Hangzhou, both in East China, respectively, to strengthen its presence in this major global luxury market.

French luxury fashion house Celine is another example worth mentioning here, having recently launched a pop-up event showcasing its Summer 2025 collection at a store in Shanghai. The five-week event, which began in mid-April, is expected to attract over 15,000 visitors.

"The Chinese market means a lot to us, especially Shanghai," said Wang Weimo of Celine, while also revealing that this pop-up event can offer tax refund services to international consumers.

Many top fashion brands have seen promising results from the "debut economy," with social media buzz and high foot traffic translating into robust sales.

In recent years, the "debut economy" has emerged as a key driver of consumption in China. This concept encompasses product launches, flagship store openings, new service roll-outs, and the creation of innovative business models and technologies.

China's policymakers made the "debut economy" a 2025 priority at the Central Economic Work Conference in December last year. This strategic focus aims to upgrade consumption quality and accelerate industrial transformation, with regional governments in China already implementing supportive measures.

Earlier this month, Shanghai held a special event to promote the "debut economy" and consumption of high-end consumer brands.

The "debut economy" is an important measure to expand domestic demand and boost consumption, said Liu Min, deputy director of the Shanghai Municipal Commission of Commerce.

Shanghai's latest policies to spur the "debut economy" include support for exhibitions, customs clearance facilitation, and financial incentives, thus further optimizing the environment for global new product launches.

"We hope that more brands will establish a long-term presence in Shanghai, starting with a new product launch or debut show, followed by opening first stores and ultimately setting up headquarters here to expand globally," Liu added.