China’s personal luxury market showed signs of stabilization in 2025, reports Caixin, with a modest recovery in the final quarter as consumers shifted spending back to domestic channels.
Sales for the year fell by 3% to 5%, a significant improvement from the 17% to 19% decline in 2024, according to a report released Thursday by Bain & Company.
This stabilization signals a potential turning point for a sector that has long been a key growth engine for global luxury brands. However, consumption habits are shifting, with an increasing focus on value and experiential luxury. Bain expects the market to resume moderate growth in 2026, reaffirming the Chinese mainland’s crucial role in the global luxury industry despite recent slowdowns.