Luxury and lifestyle giants signal confidence in China’s consumer recovery

Multinational corporations including French beauty giant L’Oréal and Canadian sportswear brand Lululemon have pledged continued investment in China at the world’s largest trade fair in Shanghai, signalling confidence in the world’s second-largest economy amid signs of a consumer recovery.

Speaking on the sidelines of the China International Import Expo (CIIE), L’Oréal chief executive Nicolas Hieronimus said “investing in China is investing in the future”, citing the country’s recovering luxury market and rising consumer confidence.

“The [Chinese] market has been recovering and accelerating quarter after quarter, and it turned positive, particularly in the luxury segment,” he said. “When I come here it is to talk about the future and discuss 2026, and clearly we are ambitious about the market. Consumer confidence is increasing … the Shanghai stock market has gone up, which is good for consumer confidence.”

The Shanghai Composite Index has risen about 21 per cent in the past six months.

L’Oréal dominated China’s luxury beauty segment, commanding nearly 30 per cent of the market, according to Hieronimus. China is the company’s second-largest market globally.

The French cosmetics maker reported its first positive growth in North Asia in two years, with mainland China sales rising by single digits in the third quarter. It is targeting 5 per cent sales growth in China for 2025.