104 China’s luxury market is showing signs of recovery, although it has not yet reached pre-pandemic levels. Recent reports from major brands like LVMH indicate a resurgence in luxury sales, particularly in fashion and leather goods, with more than 30% growth in China during December 2023. The shift towards domestic luxury purchases is evident, with LVMH noting a doubling of Chinese customers compared to 2019. This trend reflects a broader pattern where Chinese consumers increasingly opt to buy luxury products within the country rather than traveling abroad. While the mainland China personal luxury market experienced a 12% growth in 2023, reaching over 400 billion yuan, it still falls short of 2021 levels due to subdued consumer sentiment and the resumption of overseas shopping. However, industry analysts predict continued growth in the domestic luxury market in the years ahead. Mainland China’s luxury market accounted for 16% of the global market share in 2023, with expectations to reach 20% by 2030, underscoring the significance of Chinese consumers in the luxury sector. Richemont, parent company of Cartier, reported a 25% growth in sales in mainland China, Hong Kong, and Macao in the final quarter of 2023. The company attributed this growth to the gradual recovery of the Chinese market amidst challenges such as a real estate downturn and slow overseas tourism. Luxury brands have adapted to changing consumer behavior by focusing on online channels and investing in products with lasting appeal. Niche brands that prioritize brand desirability have experienced success, according to Bain’s report. An emerging trend in China’s luxury market is the bedding and fine linen segment, with increasing consumer willingness to invest in high-quality bedding. Investments in this category, including the acquisition of Italian luxury bedding company Frette, highlight the growing interest in home textile brands. Despite the potential, the Chinese luxury bedding market remains relatively untapped compared to its U.S. counterpart. While U.S. consumers dominate the high-end bed and bath textiles market, Chinese consumers represent only a small fraction, indicating significant growth opportunities in the domestic market. You Might Be Interested In Saudi aces yet again, on track to have the fastest growth rate among the G20 countries this year A small regional airline launched six new routes between the U.S. and Mexico Telehealth Companies Exploiting Advertising Loopholes to Promote Stimulants on Social Media Gilead Sciences Completes Acquisition of CymaBay for $4.3 Billion India to Postpone Caps on UPI Payments Market Share Once Again Headline: Lithia & Driveway Expands Presence in Minneapolis-St. Paul with Carousel Motor Group Acquisition
