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Zara bets on live shopping following China success: The fast-fashion retailer is expanding its live commerce capabilities to the US, UK, and Europe.

The beauty and cosmetics sector brought in $94.36 billion in consumer spending last year, claiming the title of the fastest-growing retail category in the US, per our The US Beauty Consumer report. With most consumers planning to boost their beauty budgets in 2024, the sector鈥檚 defiance against cautious spending habits is set to continue, driven by the enduring 鈥渓ipstick effect,鈥� the rise of dupes and Chinese-associated ecommerce giants, and more.

Retailers with ties to China, like Temu and TikTok Shop, have gained popularity in the US. Now, a wave of Japanese-based retailers and retail concepts has come to the US, signaling a potential shift for the retail landscape.

But even that has its limits: Walmart鈥檚 efforts to get its Chinese partners to eat the cost of tariffs have been met with uncharacteristic resistance, Bloomberg reported. Other companies, like Chipotle and Abercrombie & Fitch, have diversified supply chains that minimize their exposure to China, Mexico, and Canada.

The US does $2.18 trillion in cross-border trade (both imports and exports) with its top three biggest partners鈥擬exico, Canada, and China鈥攁ccording to the US Census Bureau.

LVMH fell short in Q3 as Chinese consumers鈥� pessimism hurt sales: The luxury conglomerate missed revenue expectations as economic uncertainty caused shoppers to pull back.

If the 10% China tariffs that took effect on February 4 remain in place for the full year, the retailer anticipates a roughly 1-percentage-point drag on comparable sales from Q2 through Q4. A strong finish to 2024: Tariff-related news cast a shadow over Best Buy鈥檚 stronger-than-expected close to the year.

China is no longer the growth engine it once was, as the country鈥檚 economic doldrums and changing consumer tastes dampen sales. While there are pockets of opportunity in emerging markets like India, Thailand, and the Middle East, global economic uncertainty is taking its toll on luxury sales. Go further: Read our reports on US Luxury Consumers and Their Path to Purchase and Luxury Ecommerce.

Chinese retailers continue to see the US as an expansion opportunity: But they face higher barriers to entry, including the need for a fully diversified supply chain.

Despite a slow start, foreign sanctions, and tight digital regulations, generative AI is emerging as a significant force in China.

The end of de minimis also exposes Amazon to higher tariffs, since the items for sale on Haul largely originate from China. For the time being, however, Europe is a more hospitable market for retailers reliant on China imports, given that it does not (currently) have broad tariffs in place.

The president鈥檚 latest promise to go through with Mexico and Canada tariffs, slap an additional 10% levy on Chinese imports, and introduce reciprocal tariffs in April will only heighten the unpredictability companies face.