Fortnum & Mason products, especially teas, have sold well in China. /CFP.CN
Fortnum & Mason products, especially teas, have sold well in China. /CFP.CN
Upmarket department store Fortnum & Mason with its luxurious goods is opening up an online shop in China to cater for booming demand from customers.
Fortnum & Mason is steeped in tradition with over three centuries of experience selling quintessential British products for people who can afford to pay for the high quality.
It boasts the British royal family among its clients who enjoy the teas, biscuits and hampers that are internationally renowned.
From China the range of teas is particularly popular, says Fortnum & Mason CEO Tom Athrun.
And due to the demand, the company is expanding its plans in China by opening its first official online store through marketplace Tmall Global.
This is on the back of the successful opening of a first Asian shop in Hong Kong.
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"What's interesting is that we've spotted that there's a big Chinese contingent who come to us every year and really enjoy our teas," said Athrun.
"Our fruit teas in particular, our sparkling teas, our marmalade, our honeys, our biscuits.
"It's really important that you partner with a local trading partner not only because they can help you sort of navigate the market differences, but really because actually they've got a really good understanding as to what's likely to resonate with customers and what isn't."
Despite economic challenges in today's world with many countries affected by inflation and other consequences from COVID, the luxury goods market continues to be on the up.
The Chinese market is expected to slow this year, hurt by COVID lockdowns, but is still expected to increase and is on course to become the world's largest luxury market by 2025.
But at the same time, while the sector has so far proved resilient to recent economic downturns, experts say there could always be changes in demand.
On the outlook for luxury goods in China, David Haigh, of Brand Finance, said: "There is a question mark over whether it will suffer over the next year or so as we hit inflationary pressure and various economic difficulties, including slowdowns. And it's quite possible that that will affect the middle class in China."