What: The reopening of China does not mean that business is back as usual.

Why it is important: Customers have changed and enjoyed new experiences at home. International department stores waiting for them to come back need also to review their own ways to accommodate them.

China has reopened its borders on the 8th of January 2023 and The Luxury Conversation reviews what has changed (or not) since the beginning of the pandemic now that an expected 18m tourists flow out of China on Q1 and 40m on Q2.

First, the quality of retail in the country has significantly upgraded and international brands and retailers are now also competing with the local options, which are as attractive now (and favoured by the national pride too).

Second, the demographic have changed, with younger and increasingly female customers travelling in and out, with families. As a consequence, some appetites have changed: customers now are longing for wellness and experiences in the nature, including luxury camping for instance. Sustainability is now also a topic, even though the meaning of the term and customers’ expectations are different from the ones in the West.

The Luxury Conversation recommends the 5 following points to be checked by brands willing to be “China-ready”:

-    Social media is key but quality primes over quantity, with one platform to be nurtured instead of trying to use them all,

-    Seamless integration is not even a must, it is a stapple for Chinese customers, especially when it comes to payments,

-     Storytelling primes over the novelty of the products,

-    Phygital is the norm,

-    Being culturally inclusive is the top element to watch, as this can be a dealbreaker.

What the Chinese borders reopening means for international retailers