China’s Luxury Slump Eases in 2025 as Shoppers Shift to Domestic Market
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The Chinese mainland’s personal luxury market showed signs of stabilization in 2025, with a modest recovery in the final quarter as consumers shifted spending back to domestic channels.
Sales for the year fell by 3% to 5%, a significant improvement from the 17% to 19% decline in 2024, according to a report released Thursday by Bain & Company.
This stabilization signals a potential turning point for a sector that has long been a key growth engine for global luxury brands. However, consumption habits are shifting, with an increasing focus on value and experiential luxury. Bain expects the market to resume moderate growth in 2026, reaffirming the Chinese mainland’s crucial role in the global luxury industry despite recent slowdowns.
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- China’s personal luxury market sales fell 3–5% in 2025, improving from a 17–19% drop in 2024, with a Q4 recovery of 1–3% growth.
- Spending shifted domestically, with overseas luxury purchases dropping to 35%, driven by currency changes and better local retail.
- Beauty grew 4–7%, watches dropped 14–17%, while secondhand luxury surged 15–20%, though it remains under 10% market penetration.
- Bain & Company
- Bain & Company is a consulting firm that published a report on the Chinese mainland's personal luxury market. Their analysis indicates a stabilization in 2025, with sales falling by 3% to 5%, a significant improvement from 2024. They expect moderate growth to resume in 2026, highlighting China's continued importance in the global luxury industry.
- 2024：
- Chinese mainland personal luxury market experienced a decline of 17% to 19% in sales.
- 2024：
- Share of luxury expenditure made outside of China was 40%.
- First half of 2025：
- Chinese mainland personal luxury market sales declined by 7% to 10%.
- Third quarter of 2025：
- Sales in the Chinese mainland personal luxury market leveled off.
- Fourth quarter of 2025：
- Chinese mainland personal luxury market sales rebounded, growing by 1% to 3%.
- 2025：
- Chinese mainland personal luxury market showed signs of stabilization with a 3% to 5% annual sales decline.
- 2025：
- Bain & Company reported a notable trend of 'repatriation' of luxury spending.
- 2025：
- Share of luxury expenditure made outside of China fell to 35%.
- 2025：
- Beauty and personal care segment increased sales by 4% to 7%.
- 2025：
- Watch segment sales declined by 14% to 17%.
- 2025：
- Leather goods and bags sales declined by 8% to 11%.
- 2025：
- Jewelry segment sales declined by 0% to 5%.
- 2025：
- Secondhand luxury sector grew by 15% to 20%.
- 2025：
- Secondhand market penetration remained under 10%.
- January 29, 2026：
- Bain & Company released a report detailing the luxury market results for 2025.
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