The 2025 Chinese Personal Luxury Goods Market.

01 Why it matters.

The definitive annual snapshot of China’s luxury market — and the 2025 edition captures a genuinely pivotal moment: the mainland Chinese personal luxury market contracted 3–5% in 2025, a sharp improvement from the 17–19% contraction of 2024, with Q3 and Q4 showing low single-digit growth. The market appears to have passed its trough — but the consumer who emerges from it is meaningfully different from the pre-contraction version.

Bain’s characterisation of 2025 as a “recalibration year” is the most useful framing available for understanding what comes next. The recovering Chinese luxury consumer is more selective, more value-conscious, and more knowledgeable. Overseas shopping’s share fell from 40% to 35% as domestic spending’s share rose. Local Chinese luxury brands are gaining market share. And resale grew 15–20% — the consumer hasn’t abandoned luxury desire, they’ve recalibrated how they engage with it.

02 Key takeaways.

1. 01 Mainland China luxury sales contracted 3–5% in 2025, a sharp improvement from 17–19% in 2024; Q3 and Q4 showed low single-digit growth.
2. 02 Beauty rebounded 4–7%; leather goods declined 8–11%; secondhand luxury grew 15–20%.
3. 03 Overseas luxury shopping’s share fell from 40% to 35% as domestic spending rose to 65% of Chinese luxury consumption.
4. 04 Local Chinese luxury and premium brands are rising from niche to “major market shapers.”
5. 05 The recovering Chinese luxury consumer is more value-conscious, more selective, and more knowledgeable — the old playbook does not apply.

03 Used in our research.

1. 01 InsightChina Is Back — But Not the Same
2. 02 InsightThe K-Shaped Luxury Market: Why Hermès Grows While Gucci Falls
3. 03 InsightJewelry Is the New Handbag: Why the Category Is Winning the Decade
4. 04 Case StudyLouis Vuitton in Shanghai: When a Flagship Becomes a Monument