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Discretionary spending is just that, though: discretionary. Think Derek’s point is in the “thou giveth, thou taketh away” vein, you know? Lure the brands in with the prospect of big money, Get the brands overly reliant on the Chinese market (as is already the case with many high fashion brands), all just to strip them of that revenue stream overnight. Not a new phenomenon by any means, can look to H&M this week, and Dolce a few years ago. This is a formidable Chinese weapon because it is a weapon that has more than just deterrent value, and moreover its battlefield is TaoBao and JD rather than civilian metropolises. Good point here Derek. Otherwise I totally agree w you, Paul. For fashion specifically China just needs more time to develop those brands before Chinese consumers voluntarily choose Shanghai over Parisian brands.

Mar 27, 2021
at
3:34 PM