Xin Ou
Research expert covering Greater China
Luxury goods market in China - statistics & facts
The world has witnessed the astonishing growth of China’s economy since entering the 21st century. Half a century ago, most of the country's population still lived in poverty and experienced starvation. In the past decade, per capita disposable income roughly doubled. Today, China has the second-largest number of ultra-high net worth individuals in the world. The resulting spending power has fueled the growth of China’s luxury goods market, making it the most prominent one in APAC.
Luxury goods retail in China
Chinese luxury consumers shopped a wide range of products, including watches, jewelry, fashion, cosmetics, fragrances, leather goods, and eyewear, with luxury jewelry being the fastest growing category over the past five years. For decades, brick-and-mortar stores dominated China’s luxury goods retail market. The world’s top ten most valuable luxury brands all have their own outlets in China. However, China’s digital luxury goods market has been growing rapidly, with numerous luxury brands vying to develop their online businesses and increase their e-commerce presence. Moreover, the thriving short video and social media commerce also contributed massively to China’s luxury retail. In 2023, WeChat, Douyin (Tik Tok), and Xiaohongshu (RED) saw a significant increase in popularity and ranked among the 10 leading online luxury shopping channels.Made in China, sold in China
There was a time when you stepped inside a luxury store anywhere in the world, no matter New York, Milan, or Dubai, Chinese shoppers are bound to be spotted. In 2015, more than three-fourths of the luxury consumption made by Chinese consumers happened overseas. Since the Covid-19 pandemic broke out in December 2019, domestic luxury consumption of Chinese consumers has surpassed their overseas luxury consumption. Luxury companies are optimistic about the future of China’s luxury goods market, with nearly 280 new luxury stores opened in the country in 2023. Moreover, the planned tax reform in Hainan province, the world’s largest duty-free shopping zone, has attracted worldwide renowned market players to establish or expand their business there.
