SHANGHAI, China: Luxury brands are redoubling efforts to charm wealthy Chinese shoppers as spending slowly revives, betting that exclusive experiences and personal connections will help them regain lost momentum in the world's second-largest luxury market.

After two sluggish years, companies such as LVMH and Hermès are focusing less on rapid expansion and more on deepening engagement with top clients through intimate dinners, large-scale shows, and stores designed with private shopping suites and exclusive elevators.

"The focus has shifted from expansion to improving sales per store and deepening engagement," said James Macdonald, head of Savills Research for China. "Rather than waiting for the economy to lift demand, brands are creating their own recovery by highlighting value and delivering richer, more immersive experiences."

Chinese demand for high-end fashion has yet to return to pre-pandemic highs as the property crisis and trade tensions weigh on sentiment. Still, optimism over early signs of stabilization has fueled a US$80 billion rally in European luxury stocks this month.

Luxury houses are concentrating their efforts in top-performing malls such as Nanjing Deji Plaza, home to Hermès, Chanel, Dior, and Louis Vuitton. The mall gained attention in August when Louis Vuitton chose it as the launch site for its new La Beauté line, and its $160 lipstick, marking its first foray into beauty in China.

To spark enthusiasm, brands are turning shopping into theatre. Louis Vuitton's massive ship-shaped Shanghai flagship, "The Louis," blends retail with dining and art exhibits. The store now generates 60 percent of sales from new clients, said Zino Helmlinger of CBRE. "Executives from other luxury brands are taking notes," he said. "They are forced to transform, or you're just heading toward disappearance."

Although Louis Vuitton's China sales rose five percent in August, insiders said the company's 2025 goal is merely to prevent declines after last year's market contraction of up to 20 percent, according to Bain & Co.

Brands are also encouraged by signs of renewed confidence among wealthy investors as the domestic stock rally lifts portfolios. "It's good news. Maybe too early to declare victory, but a good sign," said Bruno Lannes, senior partner at Bain in Shanghai.

For Prada CEO Andrea Guerra, the worst appears over. "I think that the worst is over, but I don't think that we will ever see again in the near future what we have seen in the last decade," he said. Bain data shows China's share of global luxury sales now stands at 22 percent, down from one-third at its peak.

Even as uncertainty lingers, confidence among affluent consumers is slowly returning. "People in China have gotten more used to uncertainty," said Sophia Liu, CEO of an education company who recently splurged on Burberry, Fendi, and Louis Vuitton items. "Mostly, I feel people around me are more positive at the moment."

Analysts say the brands that invested during the downturn will emerge strongest. "In a market that is now basically flat, success will come from gaining share through optimization and innovation," said Jacques Roizen of Digital Luxury Group.