Italian luxury furniture is going strong in China

For some months now, practically every insider in the world of fashion and luxury has been looking a bit anxiously at China, expecting some shift in the economy or spending patterns of its many high-income consumers. In fact, considering that Chinese customers have slowed their fashion spending and that the entire country has ceased to be the consumption engine it once was, Italian luxury furniture brands are focusing heavily on a market where splurging on clothes and accessories may no longer be common, but homes are being furnished with very high budgets. It helps, of course, that many fashion brands already have branches extending into the design field: Versace Home, for instance, under the leadership of Luxury Living Group, whose portfolio also includes Dolce & Gabbana Casa, Bentley Home, and Bugatti Home, boasts ten locations in major cities like Shanghai, Hangzhou, Zhengzhou, and Xi’an. It not only plans to consolidate its presence in top-tier cities like Beijing, Chengdu, and Shenzhen but also to expand into secondary locations that grant access to a vast clientele. Speaking to WWD, Andrea Gentilini, CEO of Luxury Living, explained that the Chinese luxury furniture market is closely tied to the performance of the luxury real estate sector in each city, and that, although 2024 has been a challenging year, strategic openings are essential to stimulate a recovery anticipated for 2025. But this was somewhat expected—more surprising was the “tour” of China undertaken by the Salone del Mobile di Milano this month, following its New York exhibition in September. 

With its explosive growth, the Salone del Mobile has partly succeeded in bridging the gap between Italian luxury furniture manufacturers and the Chinese market. The numbers from last April’s edition, as reported by WWD, speak of over 370,000 visitors at Fiera Milano, a significant portion of whom came from China. Of course, interest is one thing, and sales are another: despite the high number of Chinese visitors, Italian furniture exports to the country recorded a 17% decline in 2023, amounting to 479 million euros. This, however, aligns with the broader trend of Italian exports to China, which fell by 7.6% as of August 2023. Precisely for this reason, the Salone del Mobile has metaphorically “gone to China,” aiming to spark a fire that could soon burn brightly. One of the main initiatives, the exhibition *The Orbit’s Orbit*, showcased more than 65 design pieces from 36 leading Italian brands. Held in an iconic building designed by Heatherwick Studio, the exhibition aimed to represent an “imaginary home,” integrating cultural performances such as human architecture choreographed by local dancers. Meanwhile, last June saw the opening of the new flagship store of Molteni&C in Shanghai: a 3,500-square-meter cathedral-like store housed in a brutalist building, making it the world’s largest for the company, which collaborates with Domus Tiandi, China’s leading importer of luxury furnishings. Molteni&Co. is not alone: Cassina, part of the Haworth Lifestyle Design group, plans to open stores in Zhuhai, Dalian, Taizhou, and Changsha, while Zanotta, also under Haworth, is expected to open one soon in Hangzhou. 

History teaches us, of course, that simply setting up shop in China and selling furniture worth thousands of euros is no easy feat—especially in a time like this. As we’ve seen, imports have registered a decline as the economic slowdown has dampened overall spending across the luxury sector, and the instability of the real estate market is closely tied to expenditure on such furnishings. Yet, there is confidence in the sector thanks to the recent fiscal measures implemented by the government, including monetary policy easing and support for the real estate sector, which led Nomura analysts to predict a GDP growth of 4.4% for the fourth quarter of 2024, with further growth of 4% in 2025. This is why several brands are not only opening stores but also leveraging platforms like WeChat and Red, which have become essential for connecting with a younger and wealthier demographic. Among the short-term challenges, both in design and fashion, is the rise of a new nationalism, creating strong competition with luxury furniture brands emerging within China itself. Meanwhile, there are concerns about the impact of new U.S. policies that could be implemented with the change of presidency in January.