Affluent Chinese have been spending wildly in the luxury category again since the beginning of the year. This is expected to continue in the coming months in China and again on tourist trips abroad.
In the Year of the Rabbit, 2023, Chinese purchases will rebound strongly in the luxury category.
While the country’s economy is expected to grow by 4.5 to 5% in 2023, luxury sales are expected to soar by 35%, according to a Barclays Research and Vogue Business study. 532 consumers in the sector were questioned about their first-quarter purchases and future intentions this year.
After three years of restrictions due to the covid, the results are good news for the sector’s brands, as China was their leading export market before the pandemic.
New Year’s Eve
According to the survey, the renewed appetite for luxury was already evident in the first quarter. This included the New Year festivities (January 21), which are traditionally a very good time for spending. 28% of respondents spent at least 20,000 RMB (2,665 euros), 51% at least 8,000 RMB (1,066 euros), and only 17% less than 2,499 RMB (333 euros). 41% made purchases for the New Year and to celebrate birthdays or vacations.
Even without the New Year, the second quarter is also looking good. 38% of respondents (10% more than last quarter) plan to spend at least 20,000 RMB (2,665 euros) in the second quarter, and 51% at least 8,000 RMB (1,066 euros).
Chanel, Dior, and Saint Laurent: the winning trio
Among the brands, Chanel (32% of purchases), Dior (Lvmh) (31%), and Saint Laurent (Kering) (30%) were the favorite brands of these privileged consumers in the first quarter. “Saint Laurent outperformed the sector in terms of revenue last year, and the brand’s popularity in the survey is impressive,” points out Carole Madjo, head of European Luxury Good Research at Barclays.
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