Everything you need to know about China luxury market
China is a huge market with 1.6 billion population, how much does Chinese people spend on luxury products?
Personal premium goods sales in mainland China increased by 36% in 2021, reaching 471 billion yuan ($73.59 billion), compared to the same year the previous year.
The increase in luxury goods sales comes amid a general decline in retail sales in China since the outbreak of the epidemic began in 2020. China's home market is becoming an increasingly popular destination for international businesses, according to the data.
China mainland’s share of the global luxury market have increased to approximately 21 percent in 2021 from approximately 20 percent in 2020.
Background for China luxury market
The 1990s marked the beginning of the rise of China as a premium destination for western luxury brands. They were well aware of the potential of the Chinese high-end market. Through the 1990s, a number of Western luxury brands launched their first Chinese stores, including Hermès in 1997, Cartier in 1992, and Chanel in 1999 as examples.
Main luxury brands in China?
This is according to a recent rating by Agility Luxury Brand Affinity, which was based on a study of 1,000 luxury customers conducted across 40 different Chinese cities. With a 400,000-renminbi-per-year income as the cutoff for sampling, 300 respondents were defined as high net worth, meaning they had $1 million or more in investable assets, and they were chosen from this group.
Based on this research, most brands from Top 10 are for fashion, cosmetics, leather products, watch, other luxury categories came after.
4. Estée Lauder