Chinese luxury brands crack premiumisation code as Songmont leads growth surge

For years, China served as the world's manufacturing backbone, yet international luxury names held sway over domestic consumers. Now, a growing cohort of Chinese fashion brands is breaking that mould by executing a premiumisation strategy that combines higher price points with sustained customer retention.

Unlike earlier attempts that either overpriced without brand equity or were seen as cheap alternatives to European houses, these brands are leveraging sales events like 618 to debut new collections rather than offering deep discounts. The shift signals a maturing market where 'Made in China' is gaining cachet.

One standout is Songmont, a handbag label that has become one of the country's fastest-growing premium names. The brand reported Tmall gross merchandise value (GMV) growth of 340% in May alone. Notably, this expansion has not been fuelled by markdowns; instead, Songmont's average selling price rose from around RMB 1,600 (US$220) to RMB 2,200 (US$305) over the past year.

Customer loyalty appears solid, with an annual repeat purchase rate of 42%. The brand's performance suggests that when prices increase, genuine value—not hype—keeps buyers engaged. This contrasts with the broader retail environment where discounting often drives volume.

The trend underscores a broader evolution in China's luxury sector, where domestic players are no longer content with low-margin manufacturing and are building brand equity that resonates with local consumers.