Made in Italy or Made in China?

If you are a fashionista who spends time on TikTok, you have likely come across viral videos revealing that some of the world's most iconic luxury fashion brands have their products manufactured in China (read more). These behind-the-scenes glimpses have sparked global discussions among fashion enthusiasts, inspiring us to take a deeper dive into the worldwide luxury fashion industry, its scale, dynamics, and future prospects.

 

What is Luxury Fashion?

The concept of "luxury" originates from the Latin term luxus, denoting an existence characterized by excess, opulence, or indulgence that transcends necessity, embodying a way of life that showcases abundance and cultivated taste (Kapferer, 2016). In today's excessively saturated market, numerous companies, particularly within the fashion sector, are employing the term "luxury" in a broad context in an attempt to elevate their brand image and reputation. Although many fashion products may be accompanied by an expensive price tag, an expensive price does not necessarily denote a luxury product. In the realm of fashion, luxury is commonly characterized not just by its monetary value but also by its deep-rooted heritage, diligent craftsmanship, exclusive accessibility, and enduring design language (Kapferer, 2016). Luxury fashion embodies a thoughtful branding approach, deliberate choices, and a deep narrative essence. Think about the esteemed fashion houses like Chanel, Hermès, or Dior; these brands embody a rich narrative, a profound heritage, and an unparalleled standard of product quality that is difficult to replicate. On the other hand, fashion brands that replicate high-end aesthetics or follow their pricing strategies without the depth of product quality, brand authenticity, historical value, or craftsmanship may be categorized as premium or aspirational; however, they do not qualify as luxury entities.

 

The Global Market of Luxury Fashion

Despite continuous debates regarding production procedures, the global luxury fashion market is holding up well, with a projected revenue of US$150.37 billion in 2025 and a compound annual growth rate (CAGR) of 3.09% annually through 2029 (Statista, 2025). Accordingly, it can be determined that luxury fashion brands with compelling stories, high-quality products, and an emotional connection to their customers' experiences are here to stay and will continue to be popular in the foreseeable future.

 

China: The Biggest Producer OR the Biggest Consumer?

China now plays a central role in the luxury fashion ecosystem. As a key manufacturing base, it delivers high-quality production through advanced technology and skilled labor. At the same time, Chinese consumers account for nearly 40% of global luxury spending, a share expected to grow even more by 2025 (Statista, 2025). This dual role cements China's status as both a key manufacturing powerhouse and a critical driver of global luxury fashion trends. Accordingly, while trending conversations on social networking sites may temporarily influence market sentiment, China's strategic role in luxury fashion, as both a major producer and a consumer powerhouse, is expected to remain crucial.

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Fashion Marketing at Raffles Jakarta

At Raffles Jakarta, we prepare future industry leaders for the dynamic world of fashion marketing through a unique blend of creativity, business acumen, and global awareness. Our Fashion Marketing program is meticulously crafted to provide students with practical insights into brand development and marketing strategy, equipping them to excel in a rapidly changing industry. Powered by an international team of experienced lecturers, our students gain access to contemporary perspectives on essential global markets. Through the collective expertise of our academic network across the world, we ensure that students stay informed about industry trends, emerging challenges, and new opportunities, helping them build a truly global perspective on fashion marketing.

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If you are a fashion enthusiast, join us at Raffles Jakarta and turn your passion into your profession.