Within a decade, luxury spending in China has risen from slightly over a tenth of the world’s spending to today’s one-third, according to McKinsey & Co. Behind this growth is the country’s rising number of wealthy individuals and the spending power of millennials. Trade policies have steered spending back home, and information disseminated through digital media—especially mobile—has helped open the market to more luxury shoppers.
Which country spends the most on luxury goods?
Consumers in China spent $118.39 billion on luxury goods in 2017, far more than consumers in the US, Europe, Japan or the rest of the world. Two-thirds of digital shoppers who buy luxury goods in China are 37 years old or younger.
How many consumers in China are considered affluent, and is that growing?
The number of affluent consumers in China are expected to grow from 15 million in 2015, or 2.5% of the population in urban China, to 33 million by 2020. While status-consciousness is an important driver of luxury shopping, younger generations are increasingly drawn to luxury as a reflection of their individuality, personal style and self-identity. Consumers of luxury products in China search and buy online, but they are also enthusiastic about in-store technologies.
How much do travelers in China spend on luxury items?
Affluent travelers from China tend to spend more than half of their budget on shopping during their trips. Most travelers in China—78%—spent over RMB100,000 on travel in 2017, and about half spent more than RMB50,000 on shopping during that same period.
WHAT’S IN THIS REPORT? This report will provide an overview of the luxury goods market in China, its growth drivers, and delves into ways that luxury shoppers research luxury products and the channels they use to make purchases.