China’s Luxury Market: A Shift, Not a Decline

'If we go “back to school” for a moment, we can see that in 2019, 70% of luxury purchases by Chinese consumers took place abroad. In reality, brands were selling to Chinese consumers, but in Paris, Milan, and other international hubs—not so much within China itself. Then, with the COVID, the market quickly shifted, and almost all purchases were made domestically in China.

Today, we are witnessing a rebalancing that somewhat resembles the pre-COVID landscape. Chinese consumers have resumed traveling—many have gone to Japan, for instance, and we’ll come back to that point later. They are once again making purchases abroad or finding ways to access foreign luxury markets.

As a result, the total luxury spending by Chinese consumers in 2024 is expected to reach $78 billion—slightly higher than the $64 billion recorded in 2021. This means that while the domestic market may be slowing, this should not overshadow the bigger picture,' states our CEO, Jonathan Siboni, in his latest webinar for Journal du Luxe.

Watch the full episode to see why China's consumers' buying patterns aren't the sole factor in market slowdowns—and what it means for luxury's next phase!

Thank you, Eric Briones, for having us!