Chinese Consumers Drive Global Luxury Market Growth

Chinese consumers love Gucci and Versace and they are taking over an increasingly large share of the global luxury market. According to a recently released report by analyst McKinsey, 32 percent of personal luxury goods are currently sold to Chinese consumers, including overseas sales to Chinese. This number is expected to grow to 40 percent in 2025.

Luxury items are still sold in brick-and-mortar stores more frequently than average items, and Chinese consumers said they did not only visit designer stores for the extravagant clothing but also for goodies like free drinks and food, spa services or even just to take home and reuse a bag by their expensive label of choice.

For those who do shop online for designer wear, some Chinese e-commerce platforms have invented white-glove delivery services for premium brands, trying to cash in on China’s love for designer items. Yet, online designer sales, which are currently at 8 percent in China, are not expected to grow majorly and are projected to hit a still low 12 percent in 2025, according to the report.