ys. Fflur Roberts, head of luxury goods at Euromonitor International, pointed to Fendi and Pokemon’s recent collaboration on a 2024 Lunar New Year campaign as a good example.  According to Roberts, collaborations between fashion brands and entertainment franchises have proven to be successful in capturing the attention of consumers who appreciate the fusion of fashion and pop culture. “This is true for particularly younger Gen Z consumers in China who may be both luxury fashion enthusiasts and Pokémon fans. By leveraging the popularity and nostalgia associated with the Pokémon brands like Fendi can tap into the emotional psyche of the Chinese consumer,” she told Inside Retail. The campaign consisted of two collections, the first one exclusively between Fendi and the designer Hiroshi Fujiwara, which is made up of limited-edition bags, t-shirts and luxury accessories.  The other one was a three-way partnership between Fendi, Hiroshi Fujiwara and Pokémon, consisting of bags, t-shirts and luxury accessories and NFTs for Pokémon Go.  “While Pokémon Go to date is not allowed in China, the Chinese have their own versions of Pokémon games, including licensed mobile games and adaptations of the Pokémon franchise that are tailored to the Chinese market,” she added. According to the latest toys and games data from Euromonitor, China is the fifth biggest global market for Pokémon Go. Roberts also said that given the size of the demographic of young people in China who would aspire to both Fendi and Pokémon, there is huge potential for this type of collaboration in China. “Meanwhile, the user base for games such as the Chinese version of Pokémon games is expected to continue expanding, as more consumers turn to gaming to escape from intense work and life,” she noted. Roberts also said the introduction of advanced AI-generated content and the development of cloud gaming are also expected to boost growth over the forecast period.  Live streaming is key According to Roberts, in China’s competitive social media landscape, a new era of livestreaming is capturing the attention of discerning Chinese netizens.  Indeed, the high e-commerce penetration rate in China, 37 per cent for total apparel and footwear sales and almost 14 per cent for designer apparel and footwear sales in 2023, made social commerce and livestreaming the natural next step for luxury and fashion. Emerging local fashion brands often start on e-commerce platforms which greatly attract younger consumers with strong spending power.  “While it has struggled to gain a strong foothold in major markets such as the US, the UK and even neighbouring South Korea, e-commerce-enabled live streaming is already a major channel in China and becoming a successful way for luxury and fashion brands to reach young audiences and move inventory,” she said. Roberts noted that social media apps such as Weibo and Little Red Book integrated live streaming features as early as 2016 and 2019, respectively, to capitalise on the growing momentum.  “Live streaming and video apps such as Douyin (China’s version of TikTok) and Kuaishou attract Gen Z-ers as they integrate social elements that make them a popular place to ‘hang out,’ with features enabling research plus easy shopping and payment capabilities,” she explained. Young Chinese consumers looking for socially-driven purchases find these platforms more engaging than traditional shopping.  “Sites such as Taobao have launched livestreaming sessions, with orders placed in live broadcast rooms gradually becoming a mainstream shopping method,” she pointed out. At the same time, large online shopping festivals such as Double Eleven (also known as Single’s Day), and the 618 Festival, are further driving digitalisation, she said.  “On those days, brands engage in discounting, promotions, and live streaming, with luxury brands especially working with influential KOLs,” she concluded.