Why Chinese New Year is so important for luxury brands

Speakers

Narrator — Reporter/Host

The 2026 Lunar New Year (Year of the Horse) is a critical test for the luxury sector, with analysts "cautiously optimistic" for a rebound after China's share of global luxury sales dropped from 33% pre-pandemic to 23% in 2025.
Wealthy Chinese consumers have become more selective and patriotic, increasingly favoring "domestic labels" over Western brands due to economic headwinds like the housing crash and youth unemployment.
Brands with organic equine heritage (Hermes, Celine) are better positioned to market authentically in the Year of the Horse compared to competitors who simply slap logos on products, which younger consumers now reject.

Ticker	Direction	Speaker	Thesis	Time
LVMH /RMS	LONG	Narrator	2026 is the Year of the Horse. The narrator notes that "it's easier to market the horse" for Western houses that already feature them in logos or motifs, explicitly naming "Gucci, Celine [LVMH], Longchamp and of course, Hermes [RMS]." Chinese consumers are demanding "fresher takes" and cultural authenticity, rejecting lazy marketing (e.g., just a "red handbag with a horse on it"). Brands with inherent equine DNA (Hermes, Celine) can leverage this year's zodiac animal organically, giving them a competitive edge in capturing the projected rebound in holiday spending. Long LVMH (parent of Celine) and RMS (Hermes) as the primary beneficiaries of the Year of the Horse marketing cycle. Continued "economic slowdown" in China and a structural shift where consumers are "more inclined to support domestic labels" could cap upside for Western brands.	2:02