What: The Chinese luxury market is projected to grow at a mid-single-digit rate in 2024, driven by offshore retail and the resurgence of professional daigou (surrogate shoppers), as reported by Bain & Company.

Why it is important: This growth signifies a rebound from previous slowdowns and highlights the evolving dynamics of luxury consumption in China, which is crucial for global luxury brands due to the significant market share held by Chinese consumers.

The Bain report anticipates a solid double-digit rebound in China's luxury market in 2024, though it hasn't fully recovered to 2021 levels. The market saw a 12% growth in 2023, with Chinese consumers making up 22-24% of global luxury consumption. Key growth areas include fashion goods, lifestyle, jewelry, and beauty, with the Hainan duty-free market expanding by 25%. The report identifies offshore retail and the return of daigou as major growth drivers. Price differences between Europe, Asia, and mainland China encourage Chinese shoppers to spend abroad or rely on daigou services, which offer significantly lower prices. Luxury brands are advised to manage their wholesale channels and implement global pricing strategies to maintain consumption within mainland China. By 2030, excluding daigou sales, mainland China is expected to account for 24-26% of global luxury sales.

Chinese luxury market to see ‘solid double-digit rebound’