China’s luxury spending forecast to jump by one-third in five years
Chinese consumers’ spend on personal luxury goods surpassed pre-pandemic levels by the end of 2022 and reached $59 billion by 2023, according to research firm Euromonitor.
A new report shows China’s personal luxury good spending is forecast to reach $88 billion by 2028.
Hong Kong saw a rebound of 23% in personal luxury spending by the end of 2022, the biggest rebound in Asia Pacific. It is projected to sustain its leading position in per capita expenditure on luxury goods until 2028.
Luxury brands are also looking to invest more in the Chinese shopper at home rather than travelling abroad, according to the data.
Fflur Roberts, head of luxury goods at Euromonitor International, said: “By embracing the cultural significance of events like Lunar New Year and incorporating these elements into their marketing and product strategies, luxury brands can enhance their appeal and forge stronger connections with consumers.
“After more than three long years of disruption, luxury goods and travel are finally in a position where every piece of the puzzle is in its place. At the end of 2022 the last of the restrictions were removed in key regions like Asia Pacific, while China reopened to international tourism from January 2023, unleashing an important source of demand for both luxury goods, travel and hospitality. Now more than ever global luxury brands must adapt their new playbooks to successfully engage with Chinese customers both at home and abroad.”
Image: Fendi's baguette from the FENDI x FRGMT x POKÉMON collaboration, to celebrate the Year of the Dragon
