European luxury goods makers increasingly rely on Chinese markets

European producers of luxury goods have been increasingly setting their cap at the Chinese market, and this trend gets more and more reflected in their corporate strategies, analysts have said.

"China has grown to represent up to 40 percent of sales for many luxury companies, so it's no surprise that (developments in China) have an impact" on the outlook and production levels of companies in the sector, Mario Boselli, president of the Italy-China Foundation and a veteran of the Italian textile sector, told Xinhua.

Boselli said the COVID-19 related travel restrictions have been a major blow to the luxury goods market in Europe, forcing companies to increase their presence in China.

"In comparison to the period before the pandemic, the importance of the Chinese market has grown, and it is almost entirely based on domestic sales in China," Boselli said.

According to a report released last year by the consultancy Bain & Company, Chinese customers will account for more than half of all spending on luxury goods by 2025, a trend accelerated by the pandemic and other factors.

Giulia Crivelli, a fashion analyst and fashion editor for Il Sole 24 Ore, Italy's largest financial newspaper, also predicts a growing dependence of luxury goods makers on Chinese markets.

"The connection between what happens in China and how companies react is going to become stronger," Crivelli said.