By 2025, China will become the largest luxury market in the world

Global management consulting firm Bain & Company reported that about 21 percent of global consumer spending on luxury goods came from the Chinese mainland during 2021, and that China is expected to become the world’s largest luxury market by 2025, according to the It was reported on Saturday by the new China News Agency (Xinhua).

The company recently released the “China Luxury Goods Report 2021”, and highlighted that domestic sales of luxury personal goods on the Chinese mainland rose 36 percent year on year, to about 471 billion yuan ($74 billion) in 2021, which is Almost double the number recorded in 2019.

And luxury goods products recorded mixed market growth in China last year. Luxury leather goods were the fastest growing with around 60 percent, followed by fashion apparel and jewelry.

The report pointed out that duty-free outdoor shopping in the southern Chinese island province of Hainan boosted the country’s burgeoning luxury goods market, as luxury personal goods accounted for about 95 percent of Hainan duty-free sales last year, while more than half of luxury goods were International brand cosmetics.

In 2021, China’s online sales of luxury goods increased by about 56 percent, faster than the growth rate of physical stores, which are the traditional and primary distribution channel for the luxury goods industry.

But due to the repercussions of the COVID-19 pandemic and related travel restrictions, more than 90 percent of Chinese consumers’ spending on luxury goods is made within the Chinese mainland, according to the report.

“Overall, we expect Chinese consumers’ purchases of personal luxury goods to recover to pre-COVID-19 levels between the end of 2022 and the first half of 2020,” said Cheng Weiwei, partner at Bain & Company and co-author of the report. 2023».

With global economic output expected to exceed $100 trillion for the first time this year, the growth of the luxury goods market in China is expected to rise this year.

The British consultancy Saber had forecast that China would become the world’s largest economy in dollar terms in 2030, two years more than projected in last year’s World Economic Association calendar report. Luxury car manufacturers such as Rolls-Royce and Bentley, even Bugatti, achieved record sales in 2021, with all-wheel drive companies topping the list of sales, away from the car market crippled by the health crisis. Rolls-Royce (the BMW Group) sold 5,586 cars, exceeding the unprecedented number it recorded in 2019, and wealthy customers flocked to buy the new “Ghost” (Ghost) and four-wheel drive “Cullinan”, whose price starts at The level of 300 thousand euros (in France).

Bentley and Lamborghini (Volkswagen Group) also recorded record sales with 14,659 and 8,405 cars, respectively, worldwide, especially thanks to the Bentayga and Urus four-wheel drive, which sell for about 200,000 euros.

In terms of absolute luxury, Bugatti witnessed “the best year ever in the company’s history”, as 150 cars were ordered at a base price of about three million euros.

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