China will be the largest luxury goods market by 2025

About 21% of global consumer spending on luxury goods came from the Chinese mainland in 2021, and China is expected to become the world’s largest luxury market by 2025, according to Payne & Global, a global management consulting firm. )
The company recently released the “China Luxury Goods Report 2021”, which states that domestic sales of luxury personal goods over the Chinese landscape have grown by 36% year-on-year to about 471 billion yuan (US $ 74 billion) in 2021, more than doubling. Number registered in 2019.

And luxury goods products recorded a variation in market growth in China last year, and luxury leather goods products are growing rapidly with about 60%, followed by fashion clothing and jewelry.

The report pointed out that tax-free outdoor shopping in the southern island province of Hainan boosted the country’s growing luxury market, as luxury personal items accounted for 95 percent of tax-free sales in Hainan last year, while more than half of luxury goods. International beauty product brands.

By 2021, online sales of luxury goods in China will increase by about 56 percent, faster than the growth rate of physical stores, the traditional and primary distribution channel of the luxury goods industry. But because of the effects of the COVID-19 epidemic and related travel restrictions, more than 90% of Chinese consumer luxury goods spending is reported within Chinese territory.

“Overall, by the end of 2022 and the first half of 2023, we expect Chinese consumers to return to their pre-Kovit-19 level of personal luxury goods purchases,” said Cheng Weiwe, co-author and co-author of Payne & Company. Report.