Luxury brands turn from Hong Kong to mainland Chinese consumers still eager to shop
Despite the economic shock of the coronavirus, analysts say China’s demand for luxury goods hasn’t waned much – and it’s drawing top brands from Hong Kong to the mainland.
Consulting firm Bain estimated Chinese consumers accounted for about 35% of 281 billion euros ($317 billion) last year in global luxury spending, most of which has typically occurred overseas or in Hong Kong.
Now that the coronavirus is keeping most Chinese from traveling, several analysts expect them to buy more luxury products at home.
“All luxury brands are moving in this direction,” Federica Levato, Milan-based partner at Bain, said in a phone interview. “This is accelerated by Covid-19, but it was already happening.” In five years, the Chinese share of global luxury spending will rise to nearly half, split evenly between domestic and overseas markets, Bain predicted.