China Luxury Goods Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The China Luxury Goods Market Report is Segmented by Product Type (Clothing and Apparel, Footwear, Eyewear, Leather Goods, Jewelry, Watches, Beauty and Personal Care), End User (Men, Women and Unisex), Distribution Channel (Offline Stores and Online Stores). The Market Forecasts are Provided in Terms of Value (USD).

China Luxury Goods Market Size and Share

China Luxury Goods Market (2025 - 2030)
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Compare market size and growth of China Luxury Goods Market with other markets in Consumer Goods and Services Industry

China Luxury Goods Market Analysis by Mordor Intelligence

The China Luxury Goods Market is projected to reach USD 65.11 billion in 2025, growing at a CAGR of 6.22% to reach USD 88.06 billion by 2030. The market growth is driven by a growing middle-class population, increasing disposable incomes, and evolving consumer preferences toward premium products. Chinese millennials and Gen-Z consumers have emerged as key demographics, demonstrating strong brand loyalty and embracing digital shopping experiences. The market encompasses traditional luxury categories such as fashion, accessories, and jewelry, while witnessing substantial growth in emerging segments like luxury experiences, personalized services, and sustainable luxury products. International luxury brands are expanding their physical presence through flagship stores and boutiques while developing comprehensive online channels to capitalize on e-commerce demand. The market benefits from government policies promoting domestic consumption and reduced import tariffs on luxury goods. Companies are focusing on product innovation in terms of raw materials and design, while meeting growing demand for sustainable high-end materials. The expansion of e-commerce platforms and digital retail channels, combined with aggressive marketing strategies by established brands, continues to shape the market landscape.

Key Report Takeaways

  • By product type, leather goods held 27.48% of the China luxury goods market share in 2024, whereas beauty and personal care is poised to grow the fastest at a 5.65% CAGR through 2030.
  • By end user, women accounted for 54.77% of the China luxury goods market size in 2024, while the men’s segment is expanding at a 5.86% CAGR between 2025-2030.
  • By distribution channel, offline stores captured 79.47% of China luxury goods market share in 2024, yet online channels are projected to scale at a 6.24% CAGR to 2030.

Segment Analysis

By Product type: Leather Goods Lead while Beauty Accelerates

The China luxury market is dominated by leather goods, which holds a 27.48% share in 2024. This dominance stems from leather goods' perceived investment value and status symbol significance. The segment's strength is supported by China's established manufacturing infrastructure, expanding middle-class population, and rising disposable incomes. The market continues to grow through e-commerce integration and the established presence of domestic and international brands. Beauty and personal care is emerging as the fastest-growing segment with a projected CAGR of 5.65% (2025-2030), while watches and jewelry maintain substantial market share due to their value retention during economic uncertainty.

The guochao movement has significantly influenced luxury segments, particularly in clothing and apparel through the revival of traditional Hanfu clothing. Companies such as Shisanyu and Xiannixiaozhu have established themselves through their Hanfu designs. In response to increasing national pride and cultural confidence, luxury brands are incorporating Chinese design elements into their products. This cultural integration extends across all luxury categories, influencing product development in leather goods, beauty products, and other segments.

Market Analysis
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By Distribution channel: Online Growth Challenges Offline Dominance

Offline stores dominate the luxury watch market with a 79.47% share, as physical retail locations continue to serve as essential brand ambassadors by providing personalized experiences and allowing customers to interact directly with high-end products. These brick-and-mortar stores create immersive shopping environments that align with Chinese consumers' preferences for experiential luxury retail, maintaining their position as the primary sales channel. Physical stores remain crucial as they enable customers to experience the craftsmanship, quality, and prestige associated with high-end timepieces firsthand.

The integration of online and offline channels has become crucial, with the online segment growing at a CAGR of 6.24% (2025-2030). E-commerce platforms like Tmall and JD.com have established themselves as significant players through strategic brand partnerships and efficient delivery systems, while livestreaming has emerged as an innovative channel that combines entertainment, education, and sales to appeal to Chinese consumers. This omnichannel approach enables luxury watch brands to maintain their premium positioning while expanding their reach across multiple consumer touchpoints.

By End user: Women Dominate while Men's Segment Grows Faster

Women command a dominant 54.77% share of China's luxury market in 2024, driven by their increasing economic independence and elevated social status. Their purchasing decisions, particularly in high-end fashion, accessories, and cosmetics, are shaped by brand reputation, quality, and social status considerations, amplified by social media influence. While women prioritize refinement and brand heritage, men's luxury consumption focuses on projecting elite status, with the segment growing at a CAGR of 5.86% (2025-2030) as they diversify beyond traditional categories like watches and leather goods.

The evolving luxury market landscape in China reflects shifting gender dynamics and consumption patterns. The emergence of a unisex segment, driven by younger consumers embracing gender-fluid fashion trends, has prompted luxury brands to develop gender-inclusive product ranges and marketing strategies. This adaptation ensures brands remain relevant and responsive to the changing preferences of Chinese luxury consumers across gender segments. The market's transformation underscores the importance of understanding and catering to diverse consumer preferences while maintaining brand authenticity and exclusivity.

Market Size
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Geography Analysis

China's luxury market exhibits distinct regional characteristics, with Tier 1 cities maintaining their dominance while expanding into emerging markets. The government's establishment of International Consumption Centre Cities has created concentrated luxury hubs in Beijing, Shanghai, Guangzhou, and Shenzhen. Shanghai K11's 94% occupancy rate in 2024 and Guangzhou K11 Art Mall's 40% increase in foot traffic, according to New World Development report, demonstrate this trend. The National Bureau of Statistics reported urban retail sales of 20,455.9 billion yuan in the first half of 2024, up 3.6% year-on-year, with luxury goods contributing significantly to this growth in major metropolitan areas.

The expansion into Tier 2 and Tier 3 cities presents growth opportunities, driven by increasing purchasing power and government policies promoting consumption across urban centers. These cities benefit from digital commerce infrastructure that enables luxury brands to reach consumers regardless of their location, transforming the traditional city-tier hierarchy in luxury consumption. This geographic diversification strategy allows luxury brands to capture emerging consumer segments while maintaining their presence in established markets.

Hainan Province has become a vital part of China's luxury market through its duty-free shopping policies. The Ministry of Commerce has implemented visa-free travel initiatives and expanded duty-free shopping opportunities in the region. The Central Economic Work Conference's strategy to boost domestic demand includes measures to position Hainan as a competitive luxury shopping destination. These initiatives create a framework for geographical diversification of luxury consumption, allowing different regions in China to target specific market segments based on their unique economic and cultural characteristics. The strategic development of China's luxury market across various regions, from established Tier 1 cities to emerging markets and specialized zones like Hainan, demonstrates a comprehensive approach to market expansion that aligns with both consumer demands and government economic objectives.

Competitive Landscape

The China Luxury Goods Market exhibits moderate fragmentation, characterized by established international players competing with emerging domestic brands. The market dynamics showcase a strategic shift toward localization and cultural relevance, with international brands prioritizing store upgrades in key Chinese cities while domestic players strengthen their position through expanded retail presence and enhanced product offerings. This trend is exemplified by Rolex's October 2024 opening of its first directly operated boutique in China, enabling the brand to deliver consistent premium experiences and maintain greater control over brand presentation.

White-space opportunities have emerged at the intersection of technology and luxury, with Chinese consumers demonstrating willingness to pay premium prices for innovative features, including AI personalization. Digital engagement through platforms like Weixin has become essential for creating personalized shopping experiences and building customer relationships. The integration of technology serves as a critical competitive differentiator in the market.

The market landscape continues to transform through the rise of domestic brands leveraging the guochao trend, which celebrates Chinese cultural identity. These emerging disruptors have gained significant traction among younger consumers who increasingly favor local brands. Success in this evolving market increasingly depends on brands' ability to combine luxury heritage with technological innovation while maintaining cultural relevance to Chinese consumers.

China Luxury Goods Industry Leaders

  1. LVMH Moet Hennessy Louis Vuitton SE

  2. Chanel SA

  3. Rolex SA

  4. Hermès International SA

  5. Prada Holding S.P.A

  6. *Disclaimer: Major Players sorted in no particular order
China Luxury Goods Market
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Recent Industry Developments

  • March 2025: Tiffany opened its largest flagship store in China, a three-story space in Chengdu that expands the jeweler’s regional footprint.
  • January 2025: Burberry launched a capsule line with artist Qian Lihuai, featuring open reticular weave gabardine designs incorporating the Burberry Check.
  • November 2024: Manolo Blahnik debuted its first mainland China boutique, unveiling a capsule inspired by traditional aesthetics alongside core collections.
  • May 2024: LVMH and Alibaba deepened cooperation to apply AI and cloud tools across Tmall Luxury Pavilion operations for improved consumer insight.

Table of Contents for China Luxury Goods Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Strategic expansion by foreign brands
    • 4.2.2 Growing demand for sustainable high-end materials
    • 4.2.3 Aggressive marketing by reputed brands
    • 4.2.4 Product innovation in terms of raw material and design
    • 4.2.5 Rapid expansion of e-commerce platforms and digital retail channels
    • 4.2.6 Government policies promoting domestic consumption and reducing import tariffs on luxury goods
  • 4.3 Market Restraints
    • 4.3.1 Availablity of counterfeit products
    • 4.3.2 Lesser demand from price sensitive consumers
    • 4.3.3 Economic uncertainty and potential slowdown affecting consumer confidence and spending
    • 4.3.4 Growing competition from premium domestic brands in certain product categories
  • 4.4 Consumer Behaviour Analysis
  • 4.5 Regulatory Outlook
  • 4.6 Porter's Five Forces
    • 4.6.1 Bargaining Power of Suppliers
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Threat of New Entrants
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Degree of Competition

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Product Type
    • 5.1.1 Clothing and Apparel
    • 5.1.2 Footwear
    • 5.1.3 Eyewear
    • 5.1.4 Leather Goods
    • 5.1.5 Jewelry
    • 5.1.6 Watches
    • 5.1.7 Beauty and Personal Care
  • 5.2 By End User
    • 5.2.1 Men
    • 5.2.2 Women
    • 5.2.3 Unisex
  • 5.3 By Distribution Channel
    • 5.3.1 Offline Stores
    • 5.3.2 Online Stores

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 LVMH Moet Hennessy Louis Vuitton SE
    • 6.4.2 Chanel SA
    • 6.4.3 Rolex SA
    • 6.4.4 Hermes International SA
    • 6.4.5 Prada Holding S.P.A
    • 6.4.6 Kering SA
    • 6.4.7 Compagnie Financiere Richemont SA
    • 6.4.8 The Swatch Group Ltd.
    • 6.4.9 Chow Tai Fook Jewellery Group Ltd.
    • 6.4.10 Chow Sang Sang Holdings International Ltd.
    • 6.4.11 Shanghai Tang Ltd.
    • 6.4.12 Li-Ning
    • 6.4.13 Bosideng International Holdings Ltd.
    • 6.4.14 Lao Feng Xiang Co., Ltd.
    • 6.4.15 DJI Luxury
    • 6.4.16 Tapestry Inc.
    • 6.4.17 Burberry Group plc
    • 6.4.18 Estee Lauder Companies Inc.
    • 6.4.19 L'Oreal SA
    • 6.4.20 Shiseido Co., Ltd.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

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China Luxury Goods Market Report Scope

Luxury goods are not essential products but are deemed highly desirable within a culture or society. The Chinese luxury goods market is segmented by product type, end user, and distribution channel. By product type, the market is categorized into clothing and apparel, footwear, eyewear, leather goods, jewelry, watches, and beauty & personal care. By end user, the market is segmented into men, women, and unisex. By distribution channel, the market is categorized into offline stores and online stores. The report offers market sizing and forecasts in terms of value (in USD million) for all the above segments.

By Product Type Clothing and Apparel
Footwear
Eyewear
Leather Goods
Jewelry
Watches
Beauty and Personal Care
By End User Men
Women
Unisex
By Distribution Channel Offline Stores
Online Stores
By Product Type
Clothing and Apparel
Footwear
Eyewear
Leather Goods
Jewelry
Watches
Beauty and Personal Care
By End User
Men
Women
Unisex
By Distribution Channel
Offline Stores
Online Stores
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Key Questions Answered in the Report

What is the current size of the China luxury goods market?

The market is valued at USD 65.11 billion in 2025 and is projected to reach USD 88.06 billion by 2030.

Which product category holds the largest share in China’s luxury sector?

Leather goods lead with 27.48% of China luxury goods market share in 2024, reflecting strong investment appeal.

How fast is the online channel growing within China’s luxury landscape?

Online sales of luxury items are advancing at a 6.24% CAGR from 2025-2030, making it the fastest-growing distribution channel.

What demographic currently contributes most to luxury spending?

Women account for 54.77% of luxury purchases in 2024, although men’s spending is rising at a 5.86% CAGR.

What role do government policies play in the luxury market’s growth?

Reduced import tariffs, duty-free expansion, and the designation of International Consumption Centre Cities channel overseas spending back into domestic stores.

China Luxury Goods Market Report Snapshots