How Lunar New Year could help China's luxury market rebound in 2026

Speakers

Narrator — Financial Reporter

The 2026 Lunar New Year (Year of the Horse) is viewed as a critical test for a rebound in China's luxury market, following a decline in global market share from 33% (pre-pandemic) to 23% (2025).
Chinese consumers have become more conservative due to a housing crash and youth unemployment, often favoring domestic labels over Western ones.
Analysts are "cautiously optimistic" for a recovery, noting that the "Horse" zodiac is significantly easier for Western brands to market than the previous "Snake" year, specifically benefiting heritage brands with equestrian motifs.

Ticker	Direction	Speaker	Thesis	Time
RMS /LVMH	LONG	Narrator	The speaker states that "2026 is the year of the horse" and "it's easier to market the horse than last year's zodiac animal... Western luxury houses already feature them... like Gucci, Celine [LVMH], Longchamp and of course, Hermes [RMS]." Brands with inherent equestrian branding (Hermes, Celine via LVMH) have a distinct competitive advantage in 2026 marketing campaigns. This allows them to authentically connect with Chinese consumers and capture the projected market rebound more effectively than competitors who must manufacture a connection to the zodiac animal. LONG these specific luxury houses as they are best positioned to capitalize on the Lunar New Year spending catalyst. Continued macroeconomic weakness in China (housing crisis, unemployment) and a structural shift in consumer preference toward domestic Chinese brands.	2:04