China Consumers Report Decline in Luxury Goods Spending Amid Economic Challenges
China Consumers Struggle with Spending on Luxury Goods
According to a recent Bain & Company report, China consumers are grappling with a significant decline in spending on luxury goods, projected to reach around €45 billion (US$47.69 billion) in 2023, down 20 to 22 percent year-over-year. This downturn mirrors a broader drop in consumer confidence, exacerbated by low retail sales growth and tourism outflows to Europe and other regions.
Macroeconomic Factors Affecting Luxury Spending
The China economy has faced numerous challenges, including a prolonged property market crisis and lackluster employment figures. Despite stimulus policies introduced by Beijing to invigorate growth, recovery in the luxury segment is not expected until late 2025.
Contrasting Growth in Other Markets
- Japan's personal luxury goods market is projected to grow by 12 to 13 percent.
- Europe anticipates a 3 to 4 percent increase in luxury sales.
- The Americas’ luxury market is expected to remain stable at approximately €100 billion.
Chinese consumer sentiment is further shifting spending patterns abroad, with a noted surge in luxury purchases outside of China.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.