China's Luxury Market Contracts 3%-5% in 2025 but Shows Recovery Signs

Event summary

  • China's personal luxury market contracted by 3%-5% in 2025, a moderation from the sharper decline in 2024.
  • Beauty was the strongest performer, rebounding 4%-7%, while watches declined 14%-17%.
  • 65% of luxury consumption occurred within mainland China in 2025, up from previous years.
  • The secondhand luxury market grew 15%-20%, remaining underpenetrated at less than 10% of the primary market.

The big picture

China's luxury market is in a recalibration phase, with consumers becoming more selective and prioritizing value-driven items. The shift towards domestic consumption and the rise of local brands reflect broader trends in consumer behavior and market dynamics. The market's recovery remains volatile and highly dependent on category and brand performance.

What we're watching

Category Performance
How the uneven recovery across categories will impact brand strategies in 2026.
Consumer Shifts
Whether the preference for experience-based consumption will sustain or shift back to material goods.
Market Maturity
The pace at which the secondhand luxury market will expand and integrate into the primary market.