Nina Jobst
Research expert covering South Korea
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 watches and jewelry being the largest category. 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, making up a significant share of the overall luxury market. Moreover, the thriving short video and social media commerce also contribute massively to China’s luxury retail, with Xiaohongshu (RED) being the most popular platform for influencer marketing.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 among Chinese consumers has surpassed their overseas luxury consumption. In light of this, luxury companies have been continuously expanding their presence in China. In 2024, more than 240 stores were opened across the country, with new tier-1 cities becoming a key focus of expansion. 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, brining the province tens of billions of yuan in annual revenue from duty free sales.
