Understanding Chinese Luxury Customers’ Sentiment in 2025 and Preparing for the Future
China’s luxury market is no longer just a barometer of growth—it’s a reflection of transformation, caution, and new consumer values. After a period of volatility, including post-pandemic rebounds and tariff-induced slowdowns, the landscape is evolving once again.
Against a backdrop of economic uncertainty, rising unemployment, and price sensitivity, Chinese consumers are reprioritizing. Experience-driven purchases, wellness, education, and long-term value are now at the forefront. The result: a growing appetite for luxury that delivers more than status—it must be meaningful, personal, and resonant.
In this changing climate, leading brands are shifting strategies. They’re creating immersive, multi-sensory experiences that cater to Gen Z’s desire for in-person, community-based retail, and celebrating local culture.
This evolution is shaping a new blueprint for success in China’s luxury market. Our findings reveal three powerful forces behind the shift:
1. Experience as Currency:
Consumers prioritize emotional, cultural, and sensorial experiences—from interactive in-store activations to purpose-led campaigns rooted in local relevance.
2. Personal Fulfillment Over Prestige:
Luxury spend is increasingly tied to health, wellness, education, and lifestyle values. The rise of cycling, hiking, and even at-home social rituals like “home bars” reflects a broader cultural pivot toward joy and connection.
3. Local and Global Balance:
A renewed interest in domestic luxury brands coexists with continued spending abroad. In-store remains the channel of choice—particularly for Gen Z—who seek tactility, community, and authenticity.
Based on in-depth interviews with Chinese luxury consumers across Tier 1–3 cities, this report offers critical insights for navigating a market shaped by contradiction: cautious yet hopeful, slowed yet evolving.
