Report: Chinese Luxury Market to See ‘Solid Double-digit Rebound’

The Chinese luxury market will grow at a midsingle-digit rate in 2024, according to a report from Bain & Company.

“Solid double-digit rebound is commendable,” said Bruno Lannes, a Shanghai-based senior partner at Bain. “But China’s luxury market has not fully recovered to its 2021 levels.”

“Uncertainties remain regarding the speed at which consumer confidence will resume and how overseas luxury shopping will evolve,” Lannes added.

Growth rates in China’s luxury market began to slow from the second half of last year, as consumers, especially the all-important middle class and high-income individuals, grappled with macroeconomic uncertainties.

China’s luxury market saw 12 percent year-over-year growth in 2023, recovering from the previous year’s decline, according to Bain.

In 2023, Chinese consumers accounted for around 22 to 24 percent of the world’s total, based on Bain estimates.

Growth in fashion goods, lifestyle and jewelry was around 15 to 20 percent; leather goods grew by 10 percent to 15 percent as consumers gravitated toward lower-price segments. Beauty rose around 8 percent, driven by fragrance and color cosmetics. Watches continued to lag other categories with a 5 to 10 percent rebound.

The Hainan duty-free market expanded 25 percent year-over-year in 2023 but has yet to return to its 2021 high, according to Bain.

“Interestingly, the average spending per shopper decreased by more than 25 percent, likely due to lower discount levels, fewer daigou activities, and an increased rationality among consumers,” Bain noted in the report.

According to the Bain report, offshore retail and the return of the professional daigou, or surrogate shopper, will be two trends driving growth in 2024.

Due to obvious price gaps, Chinese shoppers’ 2023 spending in Europe and Asia recovered to around 40 percent and 65 percent of 2019 levels, respectively, according to Bain.

For example, according to Bain’s examination of the “top three bestsellers from three to five leading luxury brands,” a 20 to 25 percent price gap exists for luxury bags costing more than 10,000 renminbi, or $1,412, between the European and mainland China markets.

For those unwilling to pay for overseas travels, daigous that exist on authenticated platforms and work with certified overseas wholesalers are filling in the gap.

According to data from Re-Hub, which was cited by Bain, daigou prices can be up to 40 percent lower than the brand’s prices in mainland China.

For brands that have not tightly controlled their wholesale channels, fashion and leather goods daigou sales can account for 60 to 70 percent of total mainland China sales, Re-Hub said.

Some of the daigou platforms that Re-Hub tracks have experienced double-digit gross merchandise value growth per year, including in 2023.

With daigous on the move again, Bain said that brands must continue to tightly manage wholesale accounts overseas and implement harmonized global pricing strategies to maintain consumption in the mainland market.

Excluding daigou sales, the mainland luxury market accounted for around 16 percent of global luxury sales, and that number is expected to reach 24 to 26 percent by 2030.

85 comments

  1. The post is absolutely fantastic! Lots of great info and inspiration, both of which we all need! Also like to admire the time and effort you put into your website and detailed info you offer! I will bookmark your website!

  2. I discovered your weblog site on google and verify just a few of your early posts. Proceed to maintain up the very good operate. I simply further up your RSS feed to my MSN News Reader.

  3. Spot on with this write-up, I actually assume this website needs far more consideration. I will in all probability be once more to learn rather more, thanks for that info.

  4. Great post. I was checking constantly this blog and I’m impressed! Very useful info specifically the last part 🙂 I care for such info much. I was looking for this certain information for a very long time. Thank you and good luck.

  5. I know this is not exactly on topic, but i have a blog using the blogengine platform as well and i’m having issues with my comments displaying. is there a setting i am forgetting? maybe you could help me out? thank you.

  6. of course like your web-site however you have to check the spelling on several of your posts. Many of them are rife with spelling problems and I find it very troublesome to tell the reality then again I will surely come back again.

  7. I loved your idea there, I tell you blogs are so exciting sometimes like looking into people’s private life’s and work. Every new remark wonderful in its own right.

  8. Amazing! Your site has quite a few comment posts. How did you get all of these bloggers to look at your site I’m envious! I’m still studying all about posting articles on the net. I’m going to view pages on your website to get a better understanding how to attract more people. Thank you!

  9. Spot on with this write-up, I actually assume this website needs far more consideration. I will in all probability be once more to learn rather more, thanks for that info.

  10. I discovered your weblog site on google and verify just a few of your early posts. Proceed to maintain up the very good operate. I simply further up your RSS feed to my MSN News Reader.

  11. That is really fascinating, You’re an excessively skilled blogger. I’ve joined your rss feed and look forward to in the hunt for extra of your magnificent post. Additionally, I’ve shared your website in my social networks!

  12. I was suggested this website by my cousin. I am not sure whether this post is written by him as no one else know such detailed about my difficulty. You are wonderful! Thanks!

  13. Great write-up, I am a big believer in placing comments on sites to inform the blog writers know that they’ve added something advantageous to the world wide web!

  14. What’s Happening i’m new to this, I stumbled upon this I’ve found It positively useful and it has aided me out loads. I hope to contribute & help other users like its aided me. Great job.

  15. Pretty nice post. I just stumbled upon your weblog and wanted to say that I’ve really enjoyed surfing around your blog posts. After all I’ll be subscribing in your feed and I am hoping you write again very soon!

  16. Aw, this was a very nice post. In idea I wish to put in writing like this moreover taking time and precise effort to make an excellent article! I procrastinate alot and by no means seem to get something done.

  17. I would really like to appreciate the endeavors you cash in on written this article. I’m going for the similar best product from you finding out in the foreseeable future as well. Actually your creative writing abilities has urged me to begin my very own blog now. Genuinely the blogging is distributing its wings rapidly. Your write down is often a fine illustration showing it.

  18. Hey very cool site!! Man .. Beautiful .. Amazing .. I will bookmark your website and take the feeds also…I’m happy to find so many useful information here in the post, we need develop more strategies in this regard, thanks for sharing. . . . . .

  19. While this issue can vexed most people, my thought is that there has to be a middle or common ground that we all can find. I do value that you’ve added pertinent and sound commentary here though. Thank you!

  20. I have to say this post was certainly informative and contains useful content for enthusiastic visitors. I will definitely bookmark this website for future reference and further viewing. cheers a bunch for sharing this with us!

  21. Thanks for sharing the information. I found the information very useful. That’s a awesome story you posted. I will come back to scan some more.

  22. Nice blog here! Also your web site loads up very fast! What host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as fast as yours lol

  23. It’s continually awesome when you can not only be informed, but also entertained! I’m sure you had fun writing this article. Regards, Clotilde.

  24. This is really interesting, You’re a very skilled blogger. I have joined your feed and look forward to seeking more of your fantastic post. Also, I have shared your website in my social networks!

  25. I think it is a nice point of view. I most often meet people who rather say what they suppose others want to hear. Good and well written! I will come back to your site for sure!

  26. I like the helpful information you provide in your articles. I’ll bookmark your blog and check again here frequently. I am quite certain I’ll learn many new stuff right here! Best of luck for the next!

  27. This is my first time i visit here. I found so many helpful stuff in your website especially its discussion. From the tons of responses on your posts, I guess I am not the only one having all the enjoyment here! keep up the excellent work

  28. A friend of mine advised me to review this site. And yes. it has some useful pieces of info and I enjoyed reading it.

  29. I found your blog through google and I must say, this is probably one of the best well prepared articles I have come across in a long time. I have bookmarked your site for more posts.

  30. Thanks for some other great post. Where else may anybody get that kind of information in such an ideal method of writing? I’ve a presentation next week, and I am at the look for such information.

  31. I do not even know how I ended up here, but I thought this post was good. I do not know who you are but certainly you are going to a famous blogger if you are not already 😉 Cheers!

  32. Sweet blog! I found it while browsing on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thank you

  33. Hi there! I just wanted to ask if you ever have any trouble with hackers? My last blog (wordpress) was hacked and I ended up losing several weeks of hard work due to no back up. Do you have any solutions to protect against hackers?

  34. Wow, amazing blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your site is wonderful, let alone the content!

Leave a Reply

您的邮箱地址不会被公开。 必填项已用 * 标注