Luxury improves while textile orders weaken: Four fashion signals

Luxury demand improved this week, but the upstream picture weakened. Kering returned to comparable group growth in the second quarter while Gucci still faced a difficult mainland China market. 1 Hermès grew in Greater China and kept expanding selected stores in Beijing, Hong Kong, and Taipei. 2

The supply side is tightening faster. A U.S. fashion-industry survey found that nearly half of respondents plan to use fewer suppliers through 2027, even as planned reductions in China sourcing slow. 3 Textile order intake then fell sharply in the July ITMF survey, with weak demand replacing tariffs as the leading concern. 4

For China, the practical split is clear: brands need stronger store productivity and products that hold full-price demand; suppliers need traceability, flexibility, and deeper buyer relationships.