Market Research: Bain Releases Luxury Consumption In China

Bain's latest report, China's Luxury Market in 2022, shows that China's luxury market will decline by 10% year on year in 2022, and the rapid growth for five consecutive years has come to an end. However, Bain predicts that the Chinese luxury market will return to positive development before the end of the first quarter of 2023.

At the beginning of 2022, China's luxury goods market made a strong start, but the epidemic in various places since the second quarter has repeatedly led to high consumption and low consumption. At the same time, the cooling of the real estate market, increased income uncertainty and concerns about the COVID-19 epidemic weakened consumer confidence.

The report shows that almost all luxury goods categories have suffered from the impact of the market downturn, but to varying degrees. The categories with high online channel penetration rate are less affected by the epidemic and perform relatively well.

For example, the luxury beauty category with online channel penetration rate up to 50% only shrank by about 6%.

The online channel penetration rate of other categories is relatively low (10% - 15%), and is also relatively affected by the epidemic.

Among them, the wrist watch market has suffered the most serious decline, shrinking by 20% - 25% compared with 2021; Fashion and lifestyle categories declined by 15% - 20%; Jewelry and leather goods categories were slightly better, down 10% - 15%.

The report points out that the performance of the non beauty category is consistent with the historical trend - when encountering a decline, the performance of jewelry and leather goods category is often good, followed by fashion category, and the performance of the wrist watch category is the weakest.