China Luxury Goods Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.60 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
China Luxury Goods Market Analysis
The China luxury goods market is projected to register a CAGR of 4.6% during the forecast period (2022-2027).
The first and second waves of the COVID-19 pandemic have negatively affected China's fashion industry as factories, stores, and public events were strictly banned to prevent the spread of the coronavirus. For instance, the pandemic caused the cancellation of the Beijing and Shanghai Fashion Weeks, scheduled between March 25th and 31st, 2020, which ultimately affected the brand communication with prospective customers.
Over the medium term spending in China's market is expected to boom owing to the solid consumer confidence and willingness to buy luxury items supported by the economic development. The trend is prevalent, especially among young generations. For instance, the consumer study published in 2020, in the international journal of market research shows that around 13% of respondents favor cosmetics and shoes as luxury purchases in China.
Over the long term, the increase in disposable income, urbanization, and digitalization are the main factors anticipated to drive the growth of the luxury goods market in China.
China Luxury Goods Market Trends
This section covers the major market trends shaping the China Luxury Goods Market according to our research experts:
Emergence of E-commerce Channels
Online sale of fashion goods continues to gain share in China, with customers increasingly influenced and enabled by digital channels, also in their physical purchases. The number of online shoppers has increased in China in the study period, which in turn influences key brands to restructure their digital marketing and online retailing strategies. According to International Trade Administration, in 2020, China's cross-border e-commerce imports reached a value of $88.2 billion, an increase of 16.5% over 2019. In addition to their websites, key brands are partnering with leading e-commerce platforms such as Secoo, VIP, RED, Tmall Luxury Pavilion, and JDluxury platform to market and sell luxury fashion products in China.
Increase in Duty Free Shops
Offshore duty-free shops emerged as a new sizable luxury hub. These duty-free shops provide much lesser prices on goods and services compared to other brick and motor stores and e-commerce sites. As per the Hainan Provincial Department of Commerce, offshore duty-free sales in South China's Hainan province reached about $7.2 billion between July 1, 2020, and June 30, 2021, soaring 226% year on year. In July 2020, the duty-free shopping policy has increased the annual tax-free shopping quota in Hainan from 30,000 yuan to 100,000 yuan per person incrementally each year, the policy has also expanded the categories of duty-free goods from 38 to 45 which has increased the growth of luxury goods sales in the country.
China Luxury Goods Industry Overview
The China luxury goods industry is fragmented with the presence of many international and local players. Major players in the market include LVMH Moët Hennessy Louis Vuitton, Chanel SA, Cartier SA., Rolex SA, and Kering SA. Key players in the market are diversifying their products and expanding their distribution circles to reach prospective consumers. Further, these companies are experimenting through online channels to acquire a competitive edge in the market. For instance, in December 2020, Gucci announced the opening of two new flagship stores on Alibaba's online platform.
China Luxury Goods Market Leaders
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Prada SPA
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Chanel SA
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LVMH Moët Hennessy Louis Vuitton
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Kering SA
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Rolex SA
*Disclaimer: Major Players sorted in no particular order
China Luxury Goods Market News
- In January 2022, LVMH has increased the raft of brands that have joined up with Chinese e-commerce giant JD.com as Givenchy launches its mini program on JD's marketplace. The mini-programs enable the brands to tap into the evergreen young Chinese luxury consumer base.
- In January 2022, Gucci launched its Gucci Tiger collection which includes Gucci T-shirts with graphic tiger head iconography and the phrase Gucci Tiger, a cardigan, black pullover, and a sports jacket with contrasting Gucci-navy, red and white sleeves, and cuffs.
- In May 2021, Prada innovated retail in china by the launch of a pop-up store featuring Garden, for its latest Outdoor collection at Rong Zhai in Shanghai. The brand's outdoor selection, includes hammocks, blankets, cushions, woven picnic baskets, hats, and bags.
China Luxury Goods Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Force Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Clothing and Apparel
- 5.1.2 Footwear
- 5.1.3 Bags
- 5.1.4 Jewelry
- 5.1.5 Watches
- 5.1.6 Other Types
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5.2 By Distibution Channel
- 5.2.1 Single-brand Stores
- 5.2.2 Multi-brand Stores
- 5.2.3 Online Stores
- 5.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 LVMH Moet Hennessy Louis Vuitton
- 6.3.2 Chanel SA
- 6.3.3 Hermes International SA
- 6.3.4 Kering SA
- 6.3.5 Rolex SA
- 6.3.6 Compagnie Financiere Richemont SA
- 6.3.7 Prada SpA
- 6.3.8 L'Oreal SA
- 6.3.9 The Estee Lauder Company
- 6.3.10 The Swatch Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
9. DISCLAIMER
China Luxury Goods Industry Segmentation
Luxury goods are not essential products but are deemed highly desirable within a culture or society. The China luxury goods market is segmented by type and distribution channel. By type, the market is categorized into clothing and apparel, footwear, bags, jewelry, watches, and other types. By distribution channel, the market is categorized into single-brand stores, multi-brand stores, online retail stores, and other distribution channels. The report offers market sizing and forecasts in terms of value (in USD million) for all the above segments.
| By Type | Clothing and Apparel |
| Footwear | |
| Bags | |
| Jewelry | |
| Watches | |
| Other Types | |
| By Distibution Channel | Single-brand Stores |
| Multi-brand Stores | |
| Online Stores | |
| Other Distribution Channels |
China Luxury Goods Market Research FAQs
What is the current China Luxury Goods Market size?
The China Luxury Goods Market is projected to register a CAGR of 4.60% during the forecast period (2024-2029)
Who are the key players in China Luxury Goods Market?
Prada SPA, Chanel SA, LVMH Moët Hennessy Louis Vuitton, Kering SA and Rolex SA are the major companies operating in the China Luxury Goods Market.
What years does this China Luxury Goods Market cover?
The report covers the China Luxury Goods Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Luxury Goods Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Luxury Goods Industry Report
Statistics for the 2024 China Luxury Goods market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Luxury Goods analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
