Since 2020, Chinese mainland consumers have consistently contributed 20% to 25% to the global luxury market. China’s luxury market is undoubtably one of the most strategically important markets for brands globally, and it’s undergoing significant shifts. This China luxury market report highlights these shifts as well as our hypotheses on the direction of luxury in the next five years.
Highlights from the report
- In 2019, 57% of China’s luxury consumption happened abroad. In 2026, this number is estimated to be 30%, meaning that focusing on the domestic strategy is even more important for brands.
- While China’s luxury market shrunk in 2025, VICs are spending more than ever. The top 10% of luxury consumers contribute 45% of expenditure.
- “Old money luxury” (老钱风格) is the new aesthetic, and searches for this term have grown 362% YoY in 2025 on Xiaohongshu. This trend is also correlated with the rise of “quiet luxury” in China.
- The second-hand luxury market is booming, and watches, toys, and luxury cars are the highest categories by demand.
- Pop Mart is the biggest break-out in luxury second-hand goods, driving sales in luxury toys.
What changes in status-signaling mean to China’s luxury market
China’s luxury landscape in the 2000s looks very different from the 2020s. In this report, we track three underlying drivers of status in China, going from how they shaped luxury consumption when China’s market was booming, to hypotheses on how the market will evolve in the future. The three drivers of luxury status-signaling in China are:
- Consumers relationship with nature
- Changes in source of identity
- Economic circumstances surrounding the coming-of-age consumers
Download the report to see how China’s luxury market will unfold in the next decade.
