2 weeks Ago By Jing Daily
From changing notions of value to Gen Z’s demand for unique travel experiences — here are the key trends that will define Chinese luxury consumption in 2025. Despite a challenging year of mounting economic uncertainties and a renewed bout of “luxury shame,” mainland Chinese consumers remain a key clientele for global brands. The country’s uncertain economic outlook shook consumer confidence in 2024, leading to a forecast of mid-single-digit luxury sales growth, down from some 12% in 2023, according to Bain and Company.
However, this muted performance does not indicate a loss of appetite. Chinese tourists remained top customers for LVMH and Kering brands in markets like Japan — spending an estimated 20-25% of their luxury budgets overseas, according to press reports. Meanwhile, luxury brands saw strong enthusiasm from younger consumers for events and extensions, such as branded cafés and food and beverage collaborations.
Ultimately, Chinese consumers may be holding back on some big-ticket purchases, yet demand for luxury brands and affordable experiences remains intact. With all of this in mind, here are the top trends that will define the mindsets and behaviors of Chinese luxury consumers in 2025 and beyond: Prioritizing IRL moments and unique experiences # Luxury consumption is evolving beyond traditional purchases, with in-real-life experiences like travel, fine dining and exclusive events gaining greater market share. Chinese tourists are increasingly returning to international hotspots, with Japan standing out as a preferred destination, seeing a 117% increase in tax-free spending by Chinese tourists this year compared to 2019 levels.
Meanwhile, Chinese tourists continue to flock to off-the-beaten-path destinations — particularly in eastern Europe and southeast Asia — in search of new experiences. Continue to read the full article here.
