Personal luxury goods market in China grew 26 % in 2019. Sale of luxury goods in China accounts for around nine per cent of all global luxury spending. Chinese consumers remain some of the most active buyers of luxury items in the world. In 2019 some luxury brands in China kept a close eye on the value of the yuan and shifting travel and shopping patterns or working to adjust their China pricing. Others turned their attention more closely to their efforts within mainland China after years of trying to attract Chinese tourist-shoppers overseas. China’s economy is expected to encounter greater downward pressure and face a more complex situation in the year ahead despite signs that the country’s Gen Z is ready to spend more on luxury street wear collaborations.
Luxury market in China were buoyed this year by brands efforts to adjust pricing more in line with European or Japanese markets, which convinced Chinese shoppers who would otherwise jet off to France or the US for their luxury hauls to shop closer home. The question now for luxury brands is whether to invest more in mainland China next year or maintain current efforts (perhaps investing more in e-commerce or refurbishing any existing brick-and-mortar locations).
