By South China Morning Post | Created at 2024-11-14 07:51:18 | Updated at 2024-11-22 00:34:06
1 week ago
Luxury spending in China has seen a sharp slowdown this year – a drop in line with a fall in broad consumer sentiment and tourism outflows to Europe and other overseas destinations – with recovery projected for the second half of 2025 at the earliest, according to consultancy firm Bain & Company.
While Beijing has strived to revive the country’s economy since late September with a series of stimulus policies, the firm noted in its Luxury Goods Worldwide Market Study on Wednesday that the “government stimulus plan [has] yet to translate into consumption acceleration.”
The study comes as the world’s second-largest economy grapples with low consumer confidence, a prolonged crisis in the property market and lacklustre employment figures since the relaxation of pandemic controls.
According to the study, China’s sales of personal luxury goods are expected to be around €45 billion (US$47.69 billion) this year, down 20 to 22 per cent year over year.
In contrast, Japan’s personal luxury goods market, valued at €33 billion, is forecast to see strong growth of 12 to 13 per cent this year.
Europe is expected to grow 3 to 4 per cent to around €110 billion, while the market in the Americas is expected to hold steady €100 billion with a projected maximum decline of 1 per cent.
09:25
What does it take for foreign brands to thrive in China today?
What does it take for foreign brands to thrive in China today?
