In the wake of a resurgence in tourism, China’s luxury market experienced a notable recovery in 2023, with jewelry emerging as a standout performer.
The jewelry segment witnessed robust growth, ranging between 15% and 20%, fueled by the relaxation of Covid-19 restrictions and the resumption of travel. Similarly, fashion and lifestyle soared by 15% to 20%, while leather goods saw a commendable uptick of 10% to 15%, and beauty products grew by 8%. However, the watch market experienced a more modest rebound, showing an increase of 5% to 10%.
Despite the significant strides made in 2023 compared to the previous year, which was marred by travel restrictions and prolonged lockdowns, the luxury market has yet to reclaim its peak levels of 2021. This lag can be attributed to factors such as diminished consumer confidence, a slower-than-expected economic recovery, and a resurgence in Chinese consumers opting to purchase luxury goods abroad.
In aggregate, China’s personal luxury sales climbed by 12% in 2023, with forecasts indicating mid-single-digit growth for 2024. However, a lingering challenge lies in the pricing differentials between luxury goods sold domestically and those in overseas markets. Jewelry prices, for instance, can be up to 10% higher on the mainland compared to abroad, while watches command a premium of up to 5%.
