According to a study by Kearney, luxury spending will decline by around 4% this year in China, driven in particular by a reduced appetite for high-end leather goods and watches. Chinese customers will also favor local brands more.
In China, aspirational luxury consumers have regained a certain degree of economic confidence. However, this is unlikely to translate into a recovery in sales in the sector…
The market, which was once a luxury paradise but has been sluggish since 2024, is likely to move at a leisurely pace rather than galloping ahead as the Year of the Horse begins on February 17.
Multiple challenges for foreign brands
A report by the consulting firm Kearney, based on a survey of 3,000 aspirational Chinese consumers, dashes any illusions Western luxury players may have: “if there is a recovery, it will be modest, and the challenges for foreign brands are multiplying,” the firm warns in a press release.
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