, China
Source: Magda Ehlers (Pexels)

China’s luxury market contracts by 10% in 2022

This is the first time the market shrunk in the last five years. 

Personal luxury market sales in China contracted by 10% year-on-year in 2022 for the first time in five years, Bain & Company reported. 

The report linked this to COVID-related lockdowns in the second quarter of the year that limited purchasing. 

This is on top of the decline in the real estate market, higher unemployment, and anxiety over COVID that affected consumer sentiment.

Read more: What could make shoppers switch to another luxury brand

“While most brands saw declines in 2022, a few stayed flat or grew despite challenging conditions. Three factors contributed to their success – first, bigger brands out-performed smaller players on average; second, brands with iconic portfolios did better than those with trendy or seasonal merchandise and finally, brands with a higher concentration of Very Important Clients (VICs) fared better,” Bruno Lannes, a Shanghai-based senior partner at Bain & Company, said.

Despite this, Bain & Company expects a more positive condition to return in the first quarter of the year.

 

Follow the link for more news on

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Swarovski cracks TikTok to scale luxury amongst Gen Zs
The Austrian glassmaker is working with influencers to connect with the Singaporean market.
Starbucks Korea opens high-tech store in Seoul
Its first reserve-only branch features AR art installations and a Mixology Bar.