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Country Report
Luxury Goods in
Luxury Goods in China
Jan 2021
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Executive Summary
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COVID-19 impact on luxury goods
Prior to the pandemic, China was becoming increasingly central to the global strategies of luxury goods brands, encouraging major multinational players to invest in local production, as well as tailoring their product development, marketing and distribution strategies to the specific requirements of the local market. Premium and luxury cars manufacturer, Tesla, opened its first factory outside the US in Shanghai in 2019, while fine wines/champagne and spirits player, Pernod Ricard plans to open China’s first whiskey distillery by 2021.
COVID-19 country impact
There was a strict lockdown in Hubei province in China from 23 January to 8 April, while other provinces imposed different social distancing policies and partial lockdowns. Movement in and out of the worst-hit provinces was banned until 4 February, with 14 days quarantine required for those moving between provinces.
Company response
The top four players in the Chinese luxury goods market are all specialists in premium and luxury cars, primarily because of the high unit prices commanded in the category. Indeed, six of the top eight luxury goods players are car manufacturers, with the other two being distillers.
Retailing shift
While store-based retailing continued to dominate luxury goods sales in 2019 it was becoming increasingly difficult for brands to ignore the dynamism and growing influence of e-commerce in the Chinese market, especially as they sought to generate recognition and sales amongst younger consumers. Across personal luxury categories, major brands had been increasingly partnering with e-commerce platforms such as Tmall and JD.
What next for luxury goods?
The Chinese luxury goods market is expected to experience a strong rebound in 2021 as many consumers will engage in revenge shopping for luxury goods after lengthy restrictions on their freedoms since the onset of COVID-19. The market’s expansion is also expected to continue being driven by growing demand amongst millennial and Gen Z consumers, supported by luxury brands’ increasing focus on tailoring their product innovation, marketing and distribution strategies to these consumer groups.
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Overview
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Overview
Discover the latest market trends and uncover sources of future market growth for the Luxury Goods industry in China with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Luxury Goods industry in China, our research will save you time and money while empowering you to make informed, profitable decisions.
The Luxury Goods in China market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Luxury Goods in China?
- What are the major brands in China?
- How dynamic is the growth of Luxury Goods internet sales?
- What is driving growth?
Why buy this report?
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Request more informationTable of Contents
Luxury Goods in China
EXECUTIVE SUMMARY
COVID-19 impact on luxury goods
COVID-19 country impact
Company response
Retailing shift
What next for luxury goods?
MARKET INDICATORS
Table 1 Number of High Net Worth Individuals (HNWI): 2015-2020MARKET DATA
Table 2 Sales of Luxury Goods by Category: Value 2015-2020Table 3 Sales of Luxury Goods by Category: % Value Growth 2015-2020
Table 4 Inbound Receipts for Luxury Goods by Country of Origin: Value 2015-2020
Table 5 NBO Company Shares of Luxury Goods: % Value 2015-2019
Table 6 LBN Brand Shares of Luxury Goods: % Value 2016-2019
Table 7 Distribution of Luxury Goods by Format and Category: % Value 2020
Table 8 Forecast Sales of Luxury Goods by Category: Value 2020-2025
Table 9 Forecast Sales of Luxury Goods by Category: % Value Growth 2020-2025
DISCLAIMER
GLOBAL MACROECONOMIC ENVIRONMENT
GLOBAL INDUSTRY ENVIRONMENT
SOURCES
Summary 1 Research SourcesExperiential Luxury in China
KEY DATA FINDINGS
2020 IMPACT
Growing consumer emphasis on experience temporarily halted by COVID-19
Luxury hotels dominate in the field of experiential luxury
Expansion in domestic tourism providing a boost to experiential luxury
RECOVERY AND OPPORTUNITIES
Ongoing impact of COVID-19 on experiential luxury in 2021
Ongoing wave with sustainable mindset
Digitalisation increasingly embraced in the aftermath of COVID-19
CATEGORY DATA
Table 10 Sales of Experiential Luxury by Category: Value 2015-2020Table 11 Sales of Experiential Luxury by Category: % Value Growth 2015-2020
Table 12 NBO Company Shares of Experiential Luxury: % Value 2015-2019
Table 13 LBN Brand Shares of Experiential Luxury: % Value 2016-2019
Table 14 Forecast Sales of Experiential Luxury by Category: Value 2020-2025
Table 15 Forecast Sales of Experiential Luxury by Category: % Value Growth 2020-2025
Luxury Foodservice in China
KEY DATA FINDINGS
2020 IMPACT
Negative impact of COVID-19 on luxury foodservice
Luxury brands are attracted to cafés and focus on young digitally aware consumers
International brands increasingly attracted to luxury foodservice in China
RECOVERY AND OPPORTUNITIES
Growth in luxury cafés in tier one cities after pandemic recedes around the world
Popularity of social media plays a significant role in marketing strategies
Growing number of outlets and improvements in customer service boosts competitive environment
CATEGORY DATA
Table 16 Sales in Luxury Foodservice: Value 2015-2020Table 17 Sales in Luxury Foodservice: % Value Growth 2015-2020
Table 18 NBO Company Shares in Luxury Foodservice: % Value 2015-2019
Table 19 LBN Brand Shares in Luxury Foodservice: % Value 2016-2019
Table 20 Forecast Sales in Luxury Foodservice: Value 2020-2025
Table 21 Forecast Sales in Luxury Foodservice: % Value Growth 2020-2025
Luxury Hotels in China
KEY DATA FINDINGS
2020 IMPACT
Significant contraction for luxury hotels due booking cancellations, lockdown and decimation in inbound and business arrivals
Growing focus on experience to boost hotel usage
Marriott International maintains lead in luxury hotels as the category begins slow recovery
RECOVERY AND OPPORTUNITIES
Pandemic accelerates digitalisation activities as exemplified by Accor
Positive outlook for luxury hotels after restrictions ease
Wellness tourism gathers momentum in the wake of the pandemic
CATEGORY DATA
Table 22 Sales in Luxury Hotels: Value 2015-2020Table 23 Sales in Luxury Hotels: % Value Growth 2015-2020
Table 24 Sales in Luxury Hotels by Country of Origin: % Value 2015-2020
Table 25 NBO Company Shares in Luxury Hotels: % Value 2015-2019
Table 26 LBN Brand Shares in Luxury Hotels: % Value 2016-2019
Table 27 Forecast Sales in Luxury Hotels: Value 2020-2025
Table 28 Forecast Sales in Luxury Hotels: % Value Growth 2020-2025
Fine Wines/Champagne and Spirits in China
KEY DATA FINDINGS
2020 IMPACT
COVID-19 causes slowdown in category sales due to decreased consumption and cancellation of festivals and ban on gatherings
Robust growth for e-commerce thanks to the wide availability of the category via this channel
Decline in international retail expenditure due to decimation in inbound arrivals
RECOVERY AND OPPORTUNITIES
Industry players adapt and advance their operational strategies in light of the pandemic
Anticipated recovery for fine wines/champagne and spirits
COVID-19 stimulates longer term industry changes while Maotai Group and Baidu create first digital wine museum
CATEGORY DATA
Table 29 Sales of Fine Wines/Champagne and Spirits by Category: Value 2015-2020Table 30 Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2015-2020
Table 31 NBO Company Shares of Fine Wines/Champagne and Spirits: % Value 2015-2019
Table 32 LBN Brand Shares of Fine Wines/Champagne and Spirits: % Value 2016-2019
Table 33 Distribution of Fine Wines/Champagne and Spirits by Format: % Value 2015-2020
Table 34 Forecast Sales of Fine Wines/Champagne and Spirits by Category: Value 2020-2025
Table 35 Forecast Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2020-2025
Premium and Luxury Cars in China
KEY DATA FINDINGS
2020 IMPACT
Sales rebound after early government intervention to control pandemic and government subsidies but remain below pre-pandemic level
Sales of leading luxury brands rebound but remain lower than 2019
Tesla posts positive sales growth with price cuts benefitting from NEV subsidies
RECOVERY AND OPPORTUNITIES
Positive sale growth expected by 2023 in line with recovery in consumer confidence
Growth momentum for electric vehicles accelerates in the post-pandemic era
Carmakers’ partnerships with local tech firms entice younger generations
CATEGORY DATA
Table 36 Sales of Premium and Luxury Cars: Value 2015-2020Table 37 Sales of Premium and Luxury Cars: % Value Growth 2015-2020
Table 38 NBO Company Shares of Premium and Luxury Cars: % Value 2015-2019
Table 39 LBN Brand Shares of Premium and Luxury Cars: % Value 2016-2019
Table 40 Forecast Sales of Premium and Luxury Cars: Value 2020-2025
Table 41 Forecast Sales of Premium and Luxury Cars: % Value Growth 2020-2025
Personal Luxury in China
KEY DATA FINDINGS
2020 IMPACT
High-end luxury demonstrates more resilience than affordable luxury since COVID-19
Luxury brands strive to expand online exposure due to decline in consumer traffic in stores
Major multinational brands dominate and take greater control over their distribution
RECOVERY AND OPPORTUNITIES
Increasing focus of personal luxury brands on e-commerce intensifies since the pandemic
Reduced price gap boosts sales
Once pandemic recedes and lifestyles normalise, sustainability will be prioritised by manufacturers and consumers once again
CATEGORY DATA
Table 42 Sales of Personal Luxury by Category: Value 2015-2020Table 43 Sales of Personal Luxury by Category: % Value Growth 2015-2020
Table 44 NBO Company Shares of Personal Luxury: % Value 2015-2019
Table 45 LBN Brand Shares of Personal Luxury: % Value 2016-2019
Table 46 Distribution of Personal Luxury by Format: % Value 2015-2020
Table 47 Forecast Sales of Personal Luxury by Category: Value 2020-2025
Table 48 Forecast Sales of Personal Luxury by Category: % Value Growth 2020-2025
Designer Apparel and Footwear (Ready-To-Wear) in China
KEY DATA FINDINGS
2020 IMPACT
Despite overall slowdown, sales rebound quickly as stores reopen for business
Luxury spending switches from abroad to home for designer apparel and footwear
The pandemic stimulates communication via social media for designer apparel and footwear brands
RECOVERY AND OPPORTUNITIES
Fashion shows move online during the pandemic
Designer childrenswear remains dynamic
Luxury brands target young and sporty consumers
CATEGORY DATA
Table 49 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2015-2020Table 50 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2015-2020
Table 51 NBO Company Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2015-2019
Table 52 LBN Brand Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2016-2019
Table 53 Distribution of Designer Apparel and Footwear (Ready-to-Wear) by Format: % Value 2015-2020
Table 54 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2020-2025
Table 55 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2020-2025
Luxury Eyewear in China
KEY DATA FINDINGS
2020 IMPACT
Brands expand their e-commerce sales to compensate for loss in store-based business
Growing focus on local retailing channels due to ongoing travel restrictions
Sunglasses impacted less by COVID-19 due to seasonal factor
RECOVERY AND OPPORTUNITIES
Marchon Eyewear set to recover
Brands strive to reach younger generations with fashion-led design and rising-star brand endorsers
E-commerce continues to fuel growth
CATEGORY DATA
Table 56 Sales of Luxury Eyewear by Category: Value 2015-2020Table 57 Sales of Luxury Eyewear by Category: % Value Growth 2015-2020
Table 58 NBO Company Shares of Luxury Eyewear: % Value 2015-2019
Table 59 LBN Brand Shares of Luxury Eyewear: % Value 2016-2019
Table 60 Distribution of Luxury Eyewear by Format: % Value 2015-2020
Table 61 Forecast Sales of Luxury Eyewear by Category: Value 2020-2025
Table 62 Forecast Sales of Luxury Eyewear by Category: % Value Growth 2020-2025
Luxury Jewellery in China
KEY DATA FINDINGS
2020 IMPACT
Sales during the first quarter of 2020 severely impacted by COVID-19
Revenge shopping after restrictions ease helps to soften the dramatic contractions see in quarter one
Demand for luxury jewellery, especially gold jewellery, demonstrates resilience and elasticity in China
RECOVERY AND OPPORTUNITIES
The development of digital initiatives helps reach new customer bases
Diversified perception propels Chinese luxury jewellery sales
Brand ambassadors enhance the connection between brands and young consumers
CATEGORY DATA
Table 63 Sales of Luxury Jewellery by Category: Value 2015-2020Table 64 Sales of Luxury Jewellery by Category: % Value Growth 2015-2020
Table 65 NBO Company Shares of Luxury Jewellery: % Value 2015-2019
Table 66 LBN Brand Shares of Luxury Jewellery: % Value 2016-2019
Table 67 Distribution of Luxury Jewellery by Format: % Value 2015-2020
Table 68 Forecast Sales of Luxury Jewellery by Category: Value 2020-2025
Table 69 Forecast Sales of Luxury Jewellery by Category: % Value Growth 2020-2025
Luxury Leather Goods in China
KEY DATA FINDINGS
2020 IMPACT
Ongoing restricted travel boosts domestic sales of luxury leather goods usually purchased when travelling abroad
E-commerce blossoms under pandemic and government restrictions around store closures
LVMH Fashion (Shanghai) Trading Co Ltd extends its lead
RECOVERY AND OPPORTUNITIES
Distribution optimisation key to success
Livestreaming increasingly utilised to engage consumers
Millennials and Gen Z sustain buoyancy for luxury leather goods sales
CATEGORY DATA
Table 70 Sales of Luxury Leather Goods: Value 2015-2020Table 71 Sales of Luxury Leather Goods: % Value Growth 2015-2020
Table 72 NBO Company Shares of Luxury Leather Goods: % Value 2015-2019
Table 73 LBN Brand Shares of Luxury Leather Goods: % Value 2016-2019
Table 74 Distribution of Luxury Leather Goods by Format: % Value 2015-2020
Table 75 Forecast Sales of Luxury Leather Goods: Value 2020-2025
Table 76 Forecast Sales of Luxury Leather Goods: % Value Growth 2020-2025
Luxury Portable Consumer Electronics in China
KEY DATA FINDINGS
2020 IMPACT
Demand slumps for luxury portable electronics during the peak of the pandemic
Fitness trend boosts sales of smart wearables
Falling demand for luxury mobile phones due to category maturity and competition from cheaper alternatives
RECOVERY AND OPPORTUNITIES
Fitness trend and brand image generate aspiration in luxury wearables
Stores reopen after lockdown and redesign their business focus
Companies strive to balance new technology and luxury appeal
CATEGORY DATA
Table 77 Sales of Luxury Portable Consumer Electronics by Category: Value 2015-2020Table 78 Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2015-2020
Table 79 NBO Company Shares of Luxury Portable Consumer Electronics: % Value 2015-2019
Table 80 LBN Brand Shares of Luxury Portable Consumer Electronics: % Value 2016-2019
Table 81 Distribution of Luxury Portable Consumer Electronics by Format: % Value 2015-2020
Table 82 Forecast Sales of Luxury Portable Consumer Electronics by Category: Value 2020-2025
Table 83 Forecast Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2020-2024
Luxury Timepieces in China
KEY DATA FINDINGS
2020 IMPACT
Slow-paced recovery for luxury timepieces
Temporary cessation in production puts pressure on supply of luxury timepieces
Pre-pandemic focus on e-commerce expansion
RECOVERY AND OPPORTUNITIES
Ongoing focus on e-commerce and the construction of a digital presence
Shift in demand base from Hong Kong to Mainland China due to protests
The cancellation of offline shows encourages invention and creativity online
CATEGORY DATA
Table 84 Sales of Luxury Timepieces by Category: Value 2015-2020Table 85 Sales of Luxury Timepieces by Category: % Value Growth 2015-2020
Table 86 NBO Company Shares of Luxury Timepieces: % Value 2015-2019
Table 87 LBN Brand Shares of Luxury Timepieces: % Value 2016-2019
Table 88 Distribution of Luxury Timepieces by Format: % Value 2015-2020
Table 89 Forecast Sales of Luxury Timepieces by Category: Value 2020-2025
Table 90 Forecast Sales of Luxury Timepieces by Category: % Value Growth 2020-2025
Luxury Writing Instruments and Stationery in China
KEY DATA FINDINGS
2020 IMPACT
Despite growth in digitalisation, demand for pens remains strong
Strong potential for e-commerce amidst unprecedented COVID-19 crisis
Mont Blanc extends strong lead thanks to wide product portfolio and limited editions
RECOVERY AND OPPORTUNITIES
Category set to achieve healthy momentum over the forecast period
Growing popularity of personalised products featuring craftmanship
Pens continue to play a role among professionals
CATEGORY DATA
Table 91 Sales of Luxury Writing Instruments and Stationery: Value 2015-2020Table 92 Sales of Luxury Writing Instruments and Stationery: % Value Growth 2015-2020
Table 93 NBO Company Shares of Luxury Writing Instruments and Stationery: % Value 2015-2019
Table 94 LBN Brand Shares of Luxury Writing Instruments and Stationery: % Value 2016-2019
Table 95 Distribution of Luxury Writing Instruments and Stationery by Format: % Value 2015-2020
Table 96 Forecast Sales of Luxury Writing Instruments and Stationery: Value 2020-2025
Table 97 Forecast Sales of Luxury Writing Instruments and Stationery: % Value Growth 2020-2025
Super Premium Beauty and Personal Care in China
KEY DATA FINDINGS
2020 IMPACT
The onset of COVID-19 accelerates e-commerce penetration
Consumer demand for super premium beauty and personal care rebounds quickly after the pandemic
Rise of live streaming enables brands to engage with consumers
RECOVERY AND OPPORTUNITIES
Super premium skin care witnesses healthy momentum
Clean beauty trend gathers momentum
Cross-border e-commerce set to experience growth and create opportunities for niche brands
CATEGORY DATA
Table 98 Sales of Super Premium Beauty and Personal Care by Category: Value 2015-2020Table 99 Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2015-2020
Table 100 NBO Company Shares of Super Premium Beauty and Personal Care: % Value 2015-2019
Table 101 LBN Brand Shares of Super Premium Beauty and Personal Care: % Value 2016-2019
Table 102 Distribution of Super Premium Beauty and Personal Care by Format: % Value 2015-2020
Table 103 Forecast Sales of Super Premium Beauty and Personal Care by Category: Value 2020-2025
Table 104 Forecast Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2020-2025
Why buy this report?
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- Swatch Group Ltd, The in Luxury Goods | Jan 2011
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- Tory Burch Llc in Luxury Goods | Jun 2014
- Valentino Fashion Group SpA in Luxury Goods | Jan 2011
Complete Catalogue
Country Reports
- Luxury Goods in Argentina | Jan 2021
- Luxury Goods in Australia | Jan 2021
- Luxury Goods in Brazil | Jan 2021
- Luxury Goods in Canada | Jan 2021
- Luxury Goods in France | Jan 2021
- Luxury Goods in Germany | Jan 2021
- Luxury Goods in Hong Kong, China | Jan 2021
- Luxury Goods in India | Feb 2021
- Luxury Goods in Indonesia | Jan 2021
- Luxury Goods in Italy | Jan 2021
- Luxury Goods in Japan | Jan 2021
- Luxury Goods in Malaysia | Feb 2021
- Luxury Goods in Mexico | Jan 2021
- Luxury Goods in Poland | Jan 2021
- Luxury Goods in Romania | Jan 2021
- Luxury Goods in Russia | Jan 2021
- Luxury Goods in Singapore | Jan 2021
- Luxury Goods in South Africa | Mar 2021
- Luxury Goods in South Korea | Jan 2021
- Luxury Goods in Spain | Jan 2021
- Luxury Goods in Sweden | Jan 2021
- Luxury Goods in Switzerland | Jan 2021
- Luxury Goods in Taiwan | Jan 2021
- Luxury Goods in Thailand | Jan 2021
- Luxury Goods in the Netherlands | Jan 2021
- Luxury Goods in the Philippines | Jan 2021
- Luxury Goods in the United Arab Emirates | Jan 2021
- Luxury Goods in the United Kingdom | Jan 2021
- Luxury Goods in the US | Jan 2021
- Luxury Goods in Turkey | Jan 2021
- Luxury Goods in Ukraine | Jan 2021
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- Bulgari SpA in Luxury Goods | Jan 2011
- Burberry Group Plc in Luxury Goods | Jul 2018
- Coach Inc in Luxury Goods | Mar 2015
- Compagnie Financière Richemont SA in Luxury Goods | May 2014
- Fifth & Pacific Companies Inc in Luxury Goods | Jul 2014
- Gucci Group NV in Luxury Goods | Nov 2010
- Hermès International SCA in Luxury Goods | Mar 2016
- Kering SA in Luxury Goods | Jan 2016
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- Moncler SpA in Luxury Goods | Jun 2014
- Polo Ralph Lauren Corp in Luxury Goods | May 2013
- PPR SA in Luxury Goods | Jun 2013
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- Salvatore Ferragamo SpA in Luxury Goods | Oct 2019
- Swatch Group Ltd, The in Luxury Goods | Jan 2011
- Tiffany & Co in Luxury Goods | Jun 2013
- Tory Burch Llc in Luxury Goods | Jun 2014
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