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Intl brands see strong rebound in China

By WANG ZHUOQIONG | chinadaily.com.cn | Updated: 2026-02-09 23:56
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Shoppers take pictures of the Christmas light decorations at the Ralph Lauren store in London, UK, Dec 5, 2024. [Photo/VCG]

International lifestyle and consumer goods brands witnessed a solid recovery in the Chinese market last year, with Tapestry, Ralph Lauren, Estee Lauder and PepsiCo among those registering strong performances, according to market analysis and industry reports.

Highlighting the organic growth in the fourth quarter of 2025, Jason Yu, general manager of CTR Market Research, a Beijing-based market information and insight provider, said the Chinese economy is continuing to rebound, "with GDP growth remaining within a reasonable range" and laying "a solid foundation for the resurgence of the consumer market".

"At the same time, we are seeing a shift in the consumption structure — from basic functional needs to a focus on quality, personalization and experience. This trend presents new growth opportunities for leading companies," Yu said.

Tapestry Inc, which owns accessories and lifestyle brands such as Coach and Kate Spade New York, reported a 34 percent surge in revenue in the Chinese market in its se-cond fiscal quarter. The company attributed its growth in China to a combination of strong market share gains, particularly in digital channels, as well as broad-based demand across all segments.

During the earnings call, Tapestry executives said the company's growth last year was driven by Generation Z consumers, with digital sales channels playing a significant role in customer purchasing options.

Coach ranked as a top-performing brand during the "Double 11" shopping festival in China, and growth in digital channels is a clear indicator of where consumers choose to shop, they said.

With guidance pointing to more than 25 percent growth in the 2026 fiscal year, Tapestry said the Chinese market will continue to represent a significant long-term opportunity for its brands.

Lifestyle company Ralph Lauren reported a 30 percent jump in its year-on-year sales in China, driven by a mix of new customer acquisition and strong performance during key campaigns, according to its quarterly fiscal report released in February.

The company's success during the "Double 11" shopping festival and its ongoing expansion on the short-video platform Douyin are propelling its growth, with 32 new stores opened globally in the past quarter, including a flagship store at Chengdu IFC Mall in Southwest China's Sichuan province.

Global skin care and cosmetics giant Estee Lauder posted a 13 percent increase in its organic net sales in the Chinese market in the company's second fiscal quarter, marking its second consecutive quarter of double-digit growth in the region, which was driven by innovations, the "Double 11" shopping campaign and other festival marketing efforts.

Estee Lauder's focus on its high-end skin care and cosmetics brands, such as La Mer and Tom Ford, as well as its perfume brand Le Labo, is reported to have contributed to strong sales.

Food and beverage company PepsiCo also recorded a rebound in China, reporting strong momentum in its performance in the fourth quarter of 2025. The company attributed the gains to localized product innovations and improvements in its supply chain.

The latest data from Shanghai University of Finance and Economics further supports this positive outlook for consumer spending in China. The university's 2025 fourth-quarter social economic index reveals a sharp rebound in consumer confidence, particularly among younger consumers ages 20 to 39.

Analysts said they expect the Chinese market to continue playing a pivotal role for the growth of global lifestyle and consumer goods brands.

"Government efforts to stimulate domestic demand, including fiscal measures and targeted consumer incentives, are likely to continue supporting growth in key sectors, including luxury and consumer goods," said Yu, from CTR Market Research.

Over the past two years, multinational corporations have accelerated supply chain optimization, product innovation and social media marketing, while also partnering with local intellectual properties to better align with Chinese consumers' evolving preferences, Yu said.

"The Chinese government's policies to support consumption are providing continued momentum to the market's recovery," he added.

wangzhuoqiong@chinadaily.com.cn

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