Tapestry, Ralph Lauren, Canada Goose have strong quarters driven by Gen Z shoppers

A string of upbeat earnings reports from global luxury and lifestyle apparel companies show that Chinese shoppers are returning to premium spending, boosted by localized and culturally relevant products for the Chinese market from these brands.

From accessible luxury handbags to high-end outerwear and classic US fashion, brands including Tapestry Inc, Ralph Lauren and Canada Goose Holdings all reported recent quarterly sales surges in China, driven by Generation Z shoppers — those born roughly between 1997 and 2012 — localized marketing campaigns and strong Chinese New Year demand.

For foreign apparel companies, China is once again becoming a critical growth engine.

READ MORE: 'Shopping in China' focusing on goods, services, scenarios

Tapestry, parent company of Coach and Kate Spade New York, delivered some of the strongest signs of momentum. The company said China sales jumped 55 percent in the fiscal third quarter ended March 28, helping drive a 30 percent increase across the Asia-Pacific on a constant-currency basis.

The surging business resulted from a strategy of focusing on young consumers. The company added more than 2.4 million new customers globally during the quarter, with Gen Z consumers accounting for more than 35 percent of those acquisitions. Coach handbags proved especially popular, with unit sales rising more than 20 percent alongside low double-digit increases in average selling prices. The brand has established a presence in over 90 cities nationwide, with more than 350 stores spanning tier-one to tier-four markets. It will soon roll out targeted plans for nearly 200 additional cities this year.

The performance shows strong evidence that Chinese consumers remain willing to spend on brands that combine craftsmanship, accessibility and cultural relevance.

CEO Joanne Crevoiserat said Tapestry's focus on younger shoppers and localized engagement was helping fuel growth in China.

To coincide with Chinese New Year celebrations, Coach partnered with Chinese streetwear label Clot on an immersive campaign that blended gaming, cafes, exclusive merchandise and community events. The initiative was designed to deepen connections with younger consumers while reinforcing the brand's local relevance.

Crevoiserat said during the company's earnings call, "Our strategies of getting behind a real focus on Gen Z consumers is driving our business with new customer acquisition."

During her recent visit to China, Crevoiserat said the group has stayed closely attuned to Chinese consumers, with a particular focus on the lifestyles, values and consumption preferences of younger generations.

As Chinese consumers increasingly prioritize quality, emotional connections and self-expression, the company is forging lasting and profound emotional bonds with them through localized product development, omnichannel engagement and deeper cultural resonance, she said.

For example, initiatives such as the "China Cool" project support the growth of young Chinese design talent, infusing the brand with local inspiration and innovative vitality.

The company continues to optimize touchpoints across offline retail, digital platforms and content ecosystems to deliver brand experiences aligned with local preferences and younger consumers.

She said that over the next decade, about 5 million Chinese consumers will come of age each year. The company's brands aspire to be the choice for "the first handbag" in these young consumers' lives.

Ralph Lauren Corp has also benefited from the rebound in Chinese demand.

The company on May 21 reported fourth-quarter revenue growth of 17 percent on a reported basis, while Asia sales climbed 31 percent. China was the standout market, with sales surging more than 50 percent during the quarter.

Executives attributed the growth to strong Chinese New Year spending, expansion across key Chinese cities and a broad push into localized digital marketing.

President and CEO Patrice Louvet pointed to a range of China-focused initiatives during the earnings call, including digital red-envelope campaigns on WeChat and a large drone show in Shenzhen, Guangdong province, tied to Chinese New Year festivities.

"China performance was supported by an exceptionally strong Chinese New Year, along with further expansion across our top six city clusters and on Douyin," Louvet said.

Chief Financial Officer Justin Picicci said the company was also scaling its digital ecosystem across China while increasing engagement on local social-media platforms.

Meanwhile, Canada Goose Holdings Inc's fourth-quarter revenue rose 18 percent, while China sales increased more than 24.2 percent to 172.2 million Canadian dollars ($124.7 million).

The Canadian outerwear maker said results were supported by expanded product offerings and the launch of its first Chinese New Year capsule collection, part of a broader strategy to increase product newness and deepen engagement with Chinese shoppers.

The company also introduced its largest spring collection to date as it seeks to broaden appeal beyond winter apparel and establish itself as a year-round luxury lifestyle brand.

Taken together, the earnings reports suggest premium international brands are succeeding in China by leaning heavily into localized storytelling, digital ecosystems and culturally tailored experiences rather than relying solely on traditional luxury positioning.

ALSO READ: Secondhand luxury goods sellers tap overseas markets

The strategy appears especially effective with younger consumers. Gen Z and millennial shoppers in China are increasingly driving growth in fashion and lifestyle categories, industry analysts said, particularly for brands that can combine global prestige with local cultural fluency.

Cheng Weixiong, a fashion analyst and founder of Shanghai Liangqi Brand Management, said the country's multitiered consumer market continues to offer significant growth opportunities for international top designer and apparel brands.

"This resurgence is underpinned by deep-seated consumer trust in these brands' lifestyle positioning and product quality. Sustained, high-frequency content marketing has been instrumental in driving the brands' operational turnaround," Cheng said.

The resilience in apparel and luxury spending may also reflect a broader shift in Chinese consumption patterns. Consumers are becoming more selective, prioritizing experiences, emotional value and identity-driven purchases over purely functional spending, he added.

Contact the writers at wangzhuoqiong@chinadaily.com.cn