Asia Fashion Weekly News Bulletin – ISSUE 15 Week of 19 May 2025
(1) LVMH Said to Signal Continued Weakness on China Woes
LVMH has warned investors of soft demand after missing first-quarter revenue estimates, citing low consumer confidence in China and the impact of US tariffs.
(2) EU plans €2 fee on small parcels in hit to Shein and Temu
The EU has proposed a two-euro fee on small parcels from China, aiming to manage customs workloads and ensure compliance with product standards.
(3) Korea Fashion Association, Musinsa sign MOU to enhance K-fashion global reach
The Korea Fashion Association has signed a memorandum of understanding (MOU) with online fashion store Musinsa to collaboratively support the globalisation of K-fashion brand.
(4) Chinese fast-fashion retailer opens flagship Urban Revivo store in Hong Kong
Fashion Momentum Group has opened a flagship Urban Revivo store in Hong Kong’s Harbour City as part of its expansion strategy.
(1) LVMH Said to Signal Continued Weakness on China Woes
(Photo Credit: Na Bian/ Bloomberg)
LVMH has alerted investors that demand for luxury goods remains weak after the company missed revenue estimates for the first quarter of the year. To manage expectations, LVMH is signalling cautious trends for the second quarter, particularly due to low consumer confidence in China. Some insiders suggest that the current quarter may not show any improvement compared to the previous one.
The luxury market is struggling, largely because consumers in China are reducing their spending on expensive items, which has impacted major brands like LVMH, Chanel, and Hermes. The situation has been worsened by tariffs imposed by US President Donald Trump, creating further uncertainty for the industry.
In the first quarter, LVMH reported an 11% decline in revenue from the region that includes China, which accounts for 30% of its total sales. Preliminary estimates suggest that sales in Asia Pacific, excluding Japan, may decrease by 6.4% in the second quarter, while the key fashion and leather goods unit could see a 3.7% drop in revenue.
News Source: https://www.bloomberg.com/news/articles/2025-05-21/lvmh-said-to-warn-of-continued-luxury-weakness-amid-china-woes
(2) EU plans €2 fee on small parcels in hit to Shein and Temu
(Photo Credit: Reuters)
The European Union has proposed a two-euro fee on small parcels sent directly to consumers, particularly targeting packages from China. This fee applies to items worth less than 150 euros, which would no longer be customs-free. EU Trade Commissioner Maros Sefcovic stated that this measure aims to manage the significant workload for customs staff, as 4.6 billion such parcels entered the EU last year, with over 90% originating from China.
The new fee is intended to cover the costs of processing these parcels and to contribute to the EU budget. While packages sent directly to consumers will face a two-euro charge, those sent to warehouses will be taxed at a lower rate of 0.50 euros. This move follows similar tariff adjustments in the United States, where a flat fee on small packages remains in place.
European retailers have raised concerns about unfair competition from overseas companies like Shein and Temu, which do not always comply with EU product standards. Both companies have expressed willingness to work with regulators. Temu has reported 92 million users in the EU, while Shein has over 130 million users.
News Source: https://www.bbc.com/news/articles/cq699ymm81vo
(3) Korea Fashion Association, Musinsa sign MOU to enhance K-fashion global reach
(Photo Credit: ChosunBiz)
The Korea Fashion Association has signed an MOU with online fashion store Musinsa to support the development of K-fashion brands through mutual cooperation. The agreement aims to leverage the strengths of both parties in areas such as brand development, intellectual property protection, and international market entry, with the goal of globalising K-fashion.
The association plans to work closely with Musinsa to share networks and resources as part of a broader initiative supported by the Ministry of Trade, Industry and Energy, focusing on the successful global expansion of K-fashion brands. Sung Rae Eun, chairperson of the Korea Fashion Association, emphasised the importance of this collaboration for the future growth of K-fashion in light of the rising popularity of K-culture.
Musinsa’s representative, Park Jun Mo, expressed optimism about the partnership, highlighting that it will help accelerate the efforts of K-brands in entering international markets. He indicated that they intend to expand their cooperation to include discovering emerging brands and supporting their development, fostering a thriving domestic fashion industry.
News Source: https://biz.chosun.com/en/en-retail/2025/05/22/NQTMLM357RHQRHBIKCGWP6ASCI/
(4) Chinese fast-fashion retailer opens flagship Urban Revivo store in Hong Kong
(Photo Credit: SCMP)
Fashion Momentum Group (FMG), a Chinese fast-fashion retailer, has opened a flagship Urban Revivo store in Hong Kong’s Harbour City, marking a significant step in its expansion strategy. The 8,750 sq ft store adds to FMG’s growing network of over 400 branches across mainland China and other countries. Vivian Chen, CEO of FMG’s international business, emphasised Hong Kong’s strong economic potential and its dynamic fashion landscape as key factors for entering this market.
Despite the ongoing retail slump in Hong Kong, where sales have declined for 13 consecutive months, FMG is optimistic about its prospects. The company is known for its fast-fashion model, delivering new designs to stores within one to two weeks. FMG aims to tap into Hong Kong’s consumer spending power as part of its strategy to strengthen its brand presence in Asia.
FMG’s entry into Hong Kong follows a trend of mainland Chinese retailers establishing a presence in the city. The company sees this expansion as a crucial move to enhance its position in the competitive fashion market, aiming to compete with established global brands in the region.
