China’s luxury market loses shine as Bain study shows spending decline
China’s high-end consumers have had a tighter grip on their wallets this year, with study from Bain & Company showing less luxury spending
Luxury spending in China has seen a sharp slowdown this year – a drop in line with a fall in broad consumer sentiment and tourism outflows to Europe and other overseas destinations – with recovery projected for the second half of 2025 at the earliest, according to consultancy firm Bain & Company.
While Beijing has strived to revive the country’s economy since late September with a series of stimulus policies, the firm noted in its Luxury Goods Worldwide Market Study on Wednesday that the “government stimulus plan [has] yet to translate into consumption acceleration.”
According to the study, China’s sales of personal luxury goods are expected to be around €45 billion (US$47.69 billion) this year, down 20 to 22 per cent year over year.
In contrast, Japan’s personal luxury goods market, valued at €33 billion, is forecast to see strong growth of 12 to 13 per cent this year.
Europe is expected to grow 3 to 4 per cent to around €110 billion, while the market in the Americas is expected to hold steady €100 billion with a projected maximum decline of 1 per cent.
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