Editor’s Note
This analysis of China’s luxury market highlights a pivotal shift in consumer preferences, with a growing emphasis on experiences, domestic brands, and sustainability. The diverging trends between mainland and Hong Kong consumers underscore the market’s increasing sophistication and segmentation.
On December 12, commercial strategy consulting firm MDRi released the “2025 China Luxury Consumer Trend Forecast Report,” providing an in-depth analysis of luxury consumption trends in mainland China and Hong Kong. The report points out that the Chinese luxury market is in a period of transformation, with Chinese consumers showing stronger preferences for experiences, domestic brands, sustainable development, and innovation.
Simon Tye, Chief Executive Officer of MDRi, stated:
The report highlights five key trends that will shape the Chinese luxury market in 2025:
Mainland Chinese consumers are increasingly valuing luxury goods related to their lifestyles. 57% of consumers plan to increase spending on mental health, fitness, and high-end travel. Generation Z focuses on self-care and mental health, while millennials pursue exclusive adventure experiences that create lasting memories. Notably, health and wellness projects are one of the top choices (63%, ranking second, after mental health and fitness at 64%) for the youngest generation of mainland Chinese consumers (aged 21-25) to increase spending in the next 12 months. The conclusion indicates that the youngest generation of mainland Chinese luxury consumers is willing to invest in their long-term well-being, providing opportunities for luxury brands to meet this group’s aspirations for health, self-development, and overall quality of life by developing related products and services.
Mainland China’s first-tier cities, especially Shanghai, remain the primary luxury shopping hubs. However, Hainan is rapidly rising, with 23% of mainland Chinese luxury consumers choosing to shop in Hainan in 2024, driven by favorable policies. Hong Kong, as a luxury shopping destination, still holds attraction for consumers from third-tier cities, but its appeal to first-tier city consumers has somewhat declined, as these consumers can now enjoy similar high-end shopping experiences without traveling far. Hong Kong’s appeal to non-first-tier city luxury consumers partly stems from the mainland government’s active promotion of Hong Kong tourism.
Rising national pride and confidence are influencing mainland Chinese consumers’ preference for domestic luxury brands. 56% of consumers plan to purchase more Chinese-branded luxury goods in 2025. Mainland Chinese luxury consumers value the integration of Chinese cultural elements and Chinese aesthetics in products when making purchases. They are inclined towards luxury brands that can reflect Chinese aesthetics in their products, adopt traditional craftsmanship or fabrics, and skillfully incorporate Chinese traditions. Millennials seek a balance between international brand recognition and national pride, simultaneously stimulating demand for French and Chinese brands, especially in the high-end watch and high-end fashion sectors. The success and influence of Chinese luxury brands are expected to potentially change the future direction of the global luxury industry, setting new benchmarks and breaking boundaries in luxury in the coming years.
Sustainability has become a core value for mainland Chinese consumers, with 85% of consumers indicating this point is extremely important, and 42% willing to pay higher prices for sustainable luxury goods. Young luxury consumers (aged 21-25) are leading the second-hand luxury trend, with growing interest and daily increasing enthusiasm for second-hand high-end goods, significantly highlighting their strengthening environmental awareness. The second-hand luxury market is also developing rapidly, with 59% of mainland Chinese luxury consumers stating they purchased second-hand goods in 2024, especially small leather goods and jewelry. Young consumers, particularly Generation Z, view second-hand luxury as a way to express personal style, rather than merely a choice to save money.
Mainland consumers are gradually accepting technology-led luxury experiences, with 90% of surveyed consumers willing to pay higher prices for innovative products. AI personalization services are seen as key to creating customized customer experiences, but 66% of respondents still hold a reserved attitude towards AI-led large-scale customization.
As consumer tastes improve and the middle class expands, Chinese luxury consumers are becoming increasingly internationalized, high-tech, and discerning. It is estimated that 42-47% of Chinese luxury consumption will flow to overseas markets, with the mainland Chinese luxury market leading global trends. Future growth momentum will come from domestic brands, sustainability, and the increasing influence of young consumers.
Looking back at 2024, the mainland Chinese luxury market showed strong growth, with per capita annual consumption reaching RMB 234,500, a year-on-year increase of 7%. Second-tier city consumption growth reached 22%, surpassing the growth rate of first-tier cities. The Hong Kong market’s luxury consumption showed moderate growth, with average consumption increasing by 3% to HKD 223,900. High-priced goods such as jewelry (+64%) and watches (+66%) showed significant consumption growth, reflecting consumers’ tendency to purchase high-ticket items.