Market Trends of China Luxury Goods Industry
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.
