Italian luxury houses, Gucci and Valentino, are setting up new management teams to oversee business in the lucrative Chinese market.
Gucci has appointed Laurent Cathala as the president of fashion business in Greater China. Cathala previously worked for Tiffany as the president of Greater China and the North Asia region.
Meanwhile, Valentino has appointed Janice Lam as the chief executive of the Greater China market. Lam brings extensive experience working for Prada and Alfred Dunhill, which is a Richemont-owned brand.
The appointments are aimed at helping the brands capture a larger share of the luxury market in the country. In recent years, demand for luxury products in China has fast accelerated. In fact, China is set to become the largest luxury market in the world by 2025, according to a recent Bain and Company report.
The growth has come despite mounting social and economic challenges posed by the pandemic. Last year, the luxury goods market in China saw strong double-digit growth, with some key players seeing more than 70% growth. This growth has come as Chinese consumers have continued to shop in the country for luxury products, with the government placing strict entry and exit controls on the population, which has limited their ability to travel overseas and engage in shopping sprees.