In its latest report, The 2025 Chinese Personal Luxury Goods Market, Bain & Company highlights a market in recalibration, with China’s luxury sector entering a gradual recovery as consumer confidence remains cautious in 2025. Re-Hub, a DLG company, is pleased to contribute to the study with intelligence powered by our proprietary tools.

Discretionary spending was still restrained as consumers became more selective and prioritized value-driven luxury items that balanced quality, exclusivity, and practicality. The trend toward experience-based consumption – including travel and wellness purchases – held steady, reflecting an ongoing preference for emotional and sensory experiences over material goods.

In general, brands catering to affordable luxury and ultra-premium segments emerged as winners, delivering perceived “true value.” These brands demonstrated strong connections with affluent young consumers or ultra-wealthy individuals.

In contrast to 2024, the share of overseas spending declined in 2025. A weaker renminbi narrowed cross-market price gaps, diminishing the appeal of international shopping. In addition, ongoing shopping mall promotions and the expansion of domestic tourism boosted consumption repatriation.

As a result of these multiple trends, the mainland Chinese personal luxury market experienced a more moderate decline of 3% – 5%, after a steep decline of 17% – 19% in 2024.

Yet luxury brands are navigating an increasingly complex landscape. The resurgence of daigou activity and the rise of local premium players are putting pressure on both performance and value propositions of Western luxury brands. At the same time, the rapid expansion of the second-hand market presents a dual dynamic – introducing new risks to brand control, while also opening pathways for renewed growth if strategically managed.

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