China luxury spend is down but confidence is up

China and its territories continue their reign as leaders in luxury spend, with 59 per cent of luxury Chinese consumers purchasing high-end goods locally over the Lunar New Year, while 53 per cent purchased in Hong Kong and Macau. Gaining traction in non-domestic markets is not to be overlooked, however, as travel beyond China has seen a particular revival over the past year.

The number of luxury consumers looking to shop during their overseas travels has risen to 68 per cent. Over the Lunar New Year specifically, more than a quarter of luxury consumers purchased high-ticket goods in Europe (28 per cent) as well as in Japan or South Korea (26 per cent). “During the first quarter, Japan was flagged by several luxury brands as the main shopping destination for Chinese tourists thanks to the attractive price gap,” says Madjo.

With luxury experiences still ranking high in the consumer’s travel agenda, brands would do well to enhance retail both at home and abroad, tapping into pop-ups, key events across sporting and music, and phygital activations to drive interest. Summer becomes a key touchpoint in Europe, between coastal pop-ups and the upcoming Olympics, while ski spots in China act as a domestic activation moment.

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