Wei Gu
Wei Gu

President Xi Jinping‘s austerity drive comes at the right moment for China’s domestic fashion brands, notes WSJ wealth editor Wei Gu in the Wall Street Journal. China’s first lady Peng Liyuan puts a Guangdong brand, Exception, in the spotlight.

Wei Gu:

Chinese folk-song queen Peng Liyuan’s choice of a Guangzhou fashion brand called Exception on her maiden overseas trip last month with her husband, President Xi Jinping, has sparked a flurry of excitement among Chinese consumers. Internet searches for the little-known brand soared from 290 searches on March 21 to 31,626 searches on March 23, according to Chinese search engine Baidu BIDU -0.94% .

The timing of Ms. Peng’s fashion statement couldn’t be better. Her husband’s call for austerity has damped the mood of conspicuous consumption in China and taken the shine off the luxury brands that have thrived there.

“Overall, foreign brands still dominate—but going local is a trend, as showing off your wealth is a little risky now for high-profile people,” said Sam Flemming, chief executive of CIC, a firm that analyzes trends through Chinese social media for businesses.

More in the Wall Street Journal

Wei Gu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Austerity was one of the subjects of this week’s China Weekly Hangout. Is Xi Jinping’s austerity drive for real, or just window dressing? Steve Barru and Fons Tuinstra discuss.

Enhanced by Zemanta
Please follow and like us: