China captures luxury brands despite headwinds: report
The luxury retail market will likely grow 6.1% and 6% in 2023 and 2024, respectively.
Luxury brands are expected to sustain its focus on China despite the country’s stringent COVID-19 measures, GlobalData reported.
In a report, GlobalData projected that China’s luxury retail market will grow by 6.1% and 6% in 2023 and 2024, respectively.
“Despite China’s discouraging market environment in 2022, luxury brands will continue to consider it an important market. Following the Chinese government’s adjustment to its COVID-19 policy towards the end of 2022, the Chinese economy is expected to remain resilient in 2023, which could act as a strong factor in driving luxury brands’ confidence in the market,” Raviteja Neralla, Retail Analyst at GlobalData, said.
Read more: Luxury market’s last quarter growth hinges on China’s reopening
Moreover, sales of luxury jewelry, watches, and accessories are forecast to rise by 6.7% and 6.8% over the same period.
“In contrast, Western economies are likely to register significant slowdowns, sparking recession fears. For instance, the UK’s real GDP is expected to decline by 0.9% in 2023. The US real GDP is expected to grow by a modest rate of 0.3% in 2023,” Neralla also said, citing the prolonged conflict between Russia and Ukraine.