What: Affluent Chinese shoppers have continued to drive luxury sales growth despite a weakening economic outlook.

Why it is important: Even during economic slowdowns, wealthy consumers are willing to pay a premium for unique and differentiated products and prioritize the in-store experience and personalized service that offline channels offer.

Same-store sales growth for luxury brands at China’s MixC shopping malls grew by 9% for the first five months of the year according to data from Bernstein. The top luxury and fashion retail operator in China aims to grow luxury sales at its 86 shopping malls by 28.5% in 2023.

Bernstein also noted that premium sportswear brands such as Lululemon and Arc’teryx are doing well in comparison to mass market players as the Chinese middle class cuts back on discretionary goods.

Data from MixC showed that a resurgence in offline shopping helped premium cosmetic brands offset losses in online sales. The category saw a 14.6% decrease in sales on the country’s major e-commerce platforms but grew around 50% from January to May.

Bernstein: China’s offline luxury consumption surpasses growth expectations