Luxury and fashion—China—Q&A guide

The following IP practice note provides comprehensive and up to date legal information covering:

  • Luxury and fashion—China—Q&A guide
  • 1. What is the current state of the luxury fashion market in your jurisdiction?
  • 2. What legal framework governs the development, manufacture and supply chain for fashion goods? What are the usual contractual arrangements for these relationships?
  • 3. What legal framework governs distribution and agency agreements for fashion goods?
  • 4. What are the most commonly used distribution and agency structures for fashion goods, and what contractual terms and provisions usually apply?
  • 5. Do any special import and export rules and restrictions apply to fashion goods?
  • 6. What are the requirements and disclosure obligations in relation to corporate social responsibility and sustainability for fashion and luxury brands in your jurisdiction? What due diligence in this regard is advised or required?
  • 7. What occupational health and safety laws should fashion companies be aware of across their supply chains?
  • 8. What legal framework governs the launch of an online fashion marketplace or store?
  • 9. How does e-commerce implicate retailers’ sourcing and distribution arrangements (or other contractual arrangements) in your jurisdiction?
  • More...

Luxury and fashion—China—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to luxury and fashion in China published as part of the Lexology Getting the Deal Through series by Law Business Research (published: March 2021).

Authors: Jingtian & Gongcheng—Angell Xi (Minjie)

1. What is the current state of the luxury fashion market in your jurisdiction?

According to 'The State of Fashion 2019', jointly presented by The Business of Fashion and McKinsey & Company, Greater China will for the first time overtake the United States as the world's largest fashion market. According to McKinsey & Company's 'China Luxury Report 2019', Chinese consumers at home and abroad spent 770 billion yuan on luxury items in 2018 - equivalent to a third of the global spend. China delivered more than 50 per cent of the global growth in luxury spending between 2012 to 2018 and is expected to deliver 65 per cent of the world's additional spending heading into 2025, according to research based on UnionPay transaction data for the 2019 McKinsey China Luxury Report. Meanwhile, according to Bain & Company's research, as the driving force for global luxury spending in 2019, China made a 26 per cent year-on-year increase in luxury spending in the domestic market, with €30 billion spent on luxury items, by 2025. Chinese consumers are expected to account for 46 per cent of the global market,

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