Chinese Luxury Brands Gain Ground Against European Fashion Houses

China is making inroads into the European luxury market

Chinese manufacturers of handbags, footwear and jewellery are poaching customers from European luxury brands. Over the past four years, sales of five Chinese handbag brands on the Tmall platform have grown by 51 per cent annually, whilst the entire handbags and luggage category on the platform has been in decline.

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As reported by Business of Fashion, citing data from Bernstein, between June 2025 and June 2026, five Chinese brands – Songmont, Qiuzhen, Grotto and others – sold goods worth 4.2 billion yuan (563 million euros) on Tmall. They accounted for 18 per cent of sales in the category. By way of comparison: between 2021 and 2025, sales of bags and luggage on the platform as a whole fell by an average of 1 per cent annually.

One of the main competitors to European fashion houses is the Chinese brand Songmont. In 2025, its sales exceeded 1 billion yuan (134 million euros). The company produces leather bags with a minimalist design, without large logos, incorporating elements of Chinese aesthetics. Prices start at around 200 euros – significantly cheaper than products from leading European brands. In September 2026, Songmont showcased the brand at Paris Fashion Week, viewing the French capital as a platform for international promotion.

It is not just the prices that attract buyers. The younger generation in China increasingly favours local brands with their own designs and does not regard Louis Vuitton or Dior logos as essential status symbols. In the jewellery sector, Laopu Gold, which uses traditional Chinese gold-working techniques, is gaining popularity, whilst in the footwear sector, the Pane brand is on the rise.

At the same time, European manufacturers are under pressure due to falling demand. According to Bain & Company, in 2025 the luxury goods market in mainland China contracted by 3–5 per cent, following a 17–19 per cent decline the previous year. Sales of pre-owned luxury goods, by contrast, rose by 15–20 per cent.

A similar shift has already taken place in the automotive sector. In 2025, Chinese manufacturers overtook European brands for the first time in sales of premium-segment cars in the Chinese domestic market: 2.45 million versus 2.03 million vehicles.

Chinese companies are also beginning to enter the international fashion market. According to Le Monde, Songmont is expanding its overseas network of shops and, to increase production, is preparing to open a factory in Italy — a country where the largest European fashion houses traditionally manufacture their products.

This story was translated with the assistance of artificial intelligence.

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