A post-Covid boom is expected to result in 48% growth to China’s luxury market as the latest data begins to trickle in.
Total luxury sales for the year are forecast to reach 346 billion RMB ($69bn AUD) and mainland China is predicted to have the largest share in the luxury market sales by 2025.
Younger consumers in the Millennial and Gen Z cohorts are driving much of this growth and are more likely to use the internet to research and purchase luxury goods than older consumers.
Ecommerce penetration (online sales) is still low for luxury fashion and lifestyle in China and Gen Z is the only generation to cite online sources for all three of their top three favourite places to research luxury fashion.
China’s annual luxury online penetration increased by a total 10 percentage points between 2019 and 2020 alone to 23%, driven by these changes in shopping habits.
🤔 Research suggests that online luxury retail has changed permanently since the onset of the coronavirus pandemic, with most brands predicting online penetration of the sector in China to reach anywhere between 20%-25% within the next three years