Why Fendi is Winning in China: A Comprehensive Analysis

Fendi, the Italian luxury house founded in 1925 and now part of LVMH, has built a strong position in China’s luxury market, which is set to make up 35 to 40% of global luxury goods by 2030. As of 2025, Fendi’s results come from a mix of cultural fit, digital work, and targeted marketing that lands well with China’s affluent Gen Z and millennial shoppers.

2025 reality check: LVMH and the China rebound

The wider picture in 2025 was not all easy. LVMH’s Fashion and Leather Goods division, which holds Louis Vuitton, Dior and Fendi, posted a small organic decline over the full year, with a 5% drop across 2025. But the trend improved through the year: the division’s Q3 2025 sales were down just 2%, a clear step up from the 9% fall in the first half. China helped: Louis Vuitton’s China sales rose about 5% in August 2025, and LVMH reported a fresh uptick in China in the last quarter of 2025. The takeaway for brands like Fendi is simple. The easy growth years are over, but China is stabilising, and the brands that keep investing in local content and loyalty are the ones recovering first.

Wonderful co-branding with a tea shop franchise

The brand re-entered the Vogue Business Index top 10 in H2 2024, driven by strong social media work on Weibo and Douyin (the Chinese TikTok), where it does well through bold campaigns and collaborations. Key factors include incremental innovation, gradual updates to timeless designs, sustainability work, and using China’s social commerce boom. Despite economic headwinds, Fendi’s leather goods and fashion revenue has hit record highs, with China a big contributor to LVMH’s 33% growth in the sector post-2021. Below is a full breakdown of brand analysis, e-commerce results, and KOL strategies.

Brand Analysis

Fendi’s heritage in fur and leather craftsmanship makes it an “incremental innovator”, focused on elegant, timeless pieces rather than radical change, which appeals to Chinese consumers who want heritage luxury alongside rising national pride (Guochao). The brand keeps a smaller assortment (around 2,200 items for menswear and womenswear) compared with rivals like Gucci (over 7,300), putting quality over quantity. This approach has lifted market share, with Fendi hitting record revenue and profit in 2021 and holding momentum into 2025.

• Cultural Adaptation and Collaborations: Fendi tailors collections to Chinese tastes, such as the 2025 Lunar New Year “Fendi Eyes” capsule, inspired by the Year of the Snake and featuring the brand’s playful monster eye motif on iconic bags like the Baguette and Peekaboo. Campaigns star Chinese celebrities, blending Roman heritage with Asian style. Past hits include the 2024 Fendi x Pokemon x Fragment collaboration, with Dragonite designs for the Year of the Dragon, which refreshed products and tapped Gen Z nostalgia. The 2023 Fendi x HeyTea partnership (a popular Chinese tea brand) sold out merch nationwide, merging luxury with everyday culture.
• Sustainability and Innovation: To meet Gen Z’s eco-concerns (expected to drive 40% of luxury purchases by 2025), Fendi focuses on ethical fur sourcing via FURMARK standards, upcycling vintage pieces, and sustainable materials like recycled sugar cane foam for displays. It is part of LVMH’s Life program to cut its ecological footprint. On the digital side, Fendi uses VR and AR for interactive shopping and runs omnichannel retail, with smooth online-to-offline moves.
• Market Positioning and Challenges: Fendi targets high-income shoppers with premium pricing (for example, fur outerwear well above competitors). It counters fakes and substitutes by leaning on exclusivity and collaborations. Threats like economic slowdowns are softened by a strong digital presence. In 2025, Fendi’s hospitality moves (such as pop-ups) and cultural events (the Shanghai “Roma” show, now an ongoing series) build emotional links with shoppers.

Overall, Fendi’s strategy fits China’s luxury growth, where consumers want authenticity, fresh ideas, and cultural relevance, helping the brand post 180% growth in Earned Media Value (EMV) from fashion weeks in 2025.

E-commerce Results

China’s luxury e-commerce market is growing fast, expected to reach 1 trillion yuan by 2025, with social commerce (via WeChat, Douyin, and Xiaohongshu/RED) driving 45% of purchases influenced by creators. Fendi uses this, putting digital ahead of traditional retail, with solid sales growth as a result. For a deeper look at one of these channels, see our Xiaohongshu marketing guide.

• Sales Growth and Metrics: As part of LVMH, Fendi’s fashion and leather goods saw 33% organic growth post-2021, passing 2019 levels, with China a key driver. In 2025, collaborations like Fendi Eyes lifted online sales, with items like Baguette bags selling out on Tmall and JD.com. Recent data shows Fendi doing well at Fashion Week SS25 on Weibo and RED, with high Media Impact Value (MIV).
• Platform Performance: Fendi does well in social e-commerce, with Douyin live streams and WeChat mini-programs enabling instant buys. Despite few official social accounts in China, KOL-driven campaigns return high ROI. One post generated $997K MIV in 2021. In 2025, EMV from creators reached $6M+ during fashion weeks. Luxury e-commerce in China grew 46% recently, with Fendi gaining from AI personalization and gamification.
• Challenges and Efficiency: Cost savings via tools like ServiceChannel (96% cut in facilities time) indirectly support e-commerce scale. Tariffs and competition from local brands pose risks, but Fendi’s focus on exclusivity keeps margins healthy.

Fendi’s e-commerce results tie into a broader trend: 30% better brand trust through KOLs, with the KOL e-commerce market hitting $2.5B in 2024 and projected to reach $5.6B by 2033.

KOLs and Influencers Used by Fendi in China

Fendi relies heavily on KOLs (Key Opinion Leaders) and KOCs (Key Opinion Consumers) for authenticity and reach, shifting budgets (up to 50% for some brands) to mid-tier influencers in 2025. The brand invites KOLs to launches and uses Weibo, Douyin, and RED for campaigns, building buzz without a heavy official presence.

FAQ: Fendi in China

Why is Fendi successful in China?

Fendi blends Italian heritage with Chinese cultural moments (Lunar New Year capsules, local celebrities), keeps a small high-quality assortment, and goes heavy on social commerce through Douyin, WeChat and Xiaohongshu instead of large official ad accounts.

How did LVMH and Fendi perform in China in 2025?

LVMH’s Fashion and Leather Goods division fell about 5% organically over full-year 2025, but improved to a 2% decline in Q3 from a 9% drop in H1. China helped the recovery, with Louis Vuitton China sales up around 5% in August 2025 and a further uptick in Q4.

Which platforms does Fendi use in China?

Fendi sells and markets through Tmall and JD.com for transactions, and uses Douyin, WeChat mini-programs and Xiaohongshu (RED) for discovery, live streams and KOL campaigns.

What can smaller brands learn from Fendi in China?

You do not need a huge ad budget. A focused product range, real cultural collaborations, and steady KOL and KOC content on the right platform can build trust and sales even on a tighter budget.

Is the Chinese luxury market recovering in 2026?

Signs point to stabilising demand after the 2024 slowdown. LVMH reported improving China sales in late 2025, and brands that kept investing in local digital marketing are recovering faster than those that pulled back.

Jon Wang is a pragmatic, China-focused consultant with hands-on experience in Chinese e-commerce, distribution and digital marketing, always focused on practical solutions for smaller brands and tighter budgets.