Leather goods lag as China luxury market steadies
Mainland China’s personal luxury goods market contracted by 3%–5% in 2025, a slower decline than in 2024, according to Bain & Company’s China Personal Luxury Report.
While the overall market showed early signs of stabilisation in the second half of the year, performance in leather-related categories remained under pressure.
Bain & Company found that leather goods declined by 8%–11% in 2025, underperforming fashion overall, which fell by 5%–8%. The consultancy linked weaker leather goods demand to past and ongoing price increases and limited innovation, which made purchases harder for increasingly selective consumers to justify.
Footwear was not identified as a growth driver within the fashion category, with demand affected by the same value-driven purchasing behaviour seen across discretionary luxury segments. Bain & Company said consumers continued to prioritise practicality and perceived value, while shifting part of their spending towards experiences rather than physical goods.
Despite these pressures, Bain & Company said the second half of 2025 showed early signs of stabilisation, as luxury consumption increasingly repatriated to mainland China and value-focused brands proved more resilient in a cautious market.
