On January 21, Bain & Company released its “2024 China Luxury Goods Market Report,” reporting an 18-20% decline in mainland China’s personal luxury goods sales in 2024 due to weak consumer demand, outbound tourism recovery, and increased consumption outflow. Bain expects the market in 2025 to remain flat. Senior Global Partner Bruno Lannes suggests that brands focus on footprint consolidation and performance improvement measures rather than expansion and price hikes.

Hainan’s duty-free sales fell by approximately 29% in 2024, influenced by a reduction in both traffic and basket value due to global tourism recovery. The report also highlights a rise in luxury consumption abroad, accounting for 40% of total Chinese luxury spending last year, with overseas consumption in Europe and the Asia-Pacific region recovering to 50% and 120% of 2019 levels, respectively. However, the increase in overseas shopping wasn’t enough to offset the decline in onshore sales, resulting in an overall decrease of 7% in total Chinese luxury goods spending.