Sales in China's Luxury Market See Biggest Drop in Over a Decade

China's luxury market sales are estimated to have plunged as much as 20 percent in 2024, the steepest since at least 2011, as the country's economic slowdown dents consumer confidence, according to consultancy firm Bain & Co.

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HONG KONG —

The decline has brought the country's luxury market size back to near the 2020 level, snapping years of exponential growth that was driven in part by a domestic spending boom during China's Covid-19 closure.

Luxury watches and jewellery were hit the most by the spending slowdown, with sales falling more than 30 percent from the year before, followed by leather goods and fashion and lifestyle items, Bain said in its latest report released on Jan. 21.

The firm expects 2025, especially the first half, to be as challenging, with sales remaining flat in mainland China.