China Luxury Goods Market Poised To Recover, Bain Says
12-02-23
China’s luxury goods market is poised to recover this year after Covid-related lockdowns waylaid a five-year growth run in 2022, Bain & Company said in a new report today.
“Covid-related lockdowns from the second quarter created barriers to purchasing” last year, the consultancy said in a press release. “A decline in the real estate market, higher unemployment, and anxiety around Covid also weakened consumer sentiment.” Overall, China personal luxury sales contracted 10% year on year in 2022, it estimated.
For 2023, “the fundamentals of consumption in China are still intact,” Bain said. “Compared to other emerging markets, China is a behemoth for luxury growth. It has a larger number of middle- and high-income consumers, and these populations are projected to double by 2030,” the press release said.