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China to account for lion’s share of the luxury market growth in 2018

Date:2018-07-11 10:19Source:ChinaTravelNews ReadingNumber: Times

While luxury spending across all regions is likely to be 6%-8% higher this year than last (reaching $325-331 billion), China is expected to account for the lion’s share of the growth in 2018.

According to the Bain Luxury Goods Worldwide Market Study for Spring 2018, the Chinese consumer and the millennial generation remain the keys to the growth of an industry that could reach USD 459 billion (€390 billion) globally in sales by 2025. While the report focuses mostly on luxury retail, some of the findings are pertinent to travel.

After a 2016 stagnation in luxury spending, 2017 experienced a “healthier new normal,” which is continuing into 2018. This new normal means “younger consumers dictating the rules” as a “millennial state of mind, with a new set of values, is disrupting the luxury paradigm.”

In terms of spending trends, Bain finds China continues to drive the growth of the luxury market. While luxury spending across all regions is likely to be 6%-8% higher this year than last (reaching USD 325 - USD 331 billion), China is expected to account for the lion’s share of the growth in 2018. Bain forecasts the market will grow by 20%-22% this year.

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