In recent years, the trend of appointing Asian celebrities as brand ambassadors has gained momentum, as luxury brands recognize the powerful influence these stars hold with both Asian and global audiences.
On March 23, 2023, Bulgari announced Liu Yifei as their global brand ambassador, following her appointment as Louis Vuitton’s image ambassador two years earlier. Liu Yifei’s global recognition was solidified by her role in Mulan, which earned her numerous awards and nominations at film festivals in 2020.
Luxury brands are optimistic about China’s potential, eager to tap into the country’s rapid growth and expanding middle class. These brands have strategically focused on the Chinese market, opening new stores in key cities, launching China-exclusive collections, and crafting social media campaigns tailored to Chinese consumers. With these efforts, and strategic celebrity partnerships, luxury brands are well-positioned to thrive in this crucial market.
In 2025, the Chinese and broader Asian markets remain a priority for luxury brands, who are expected to continue prioritizing these regions in their global strategies.
资料来源：欧睿国际，奥纬咨询，中金公司研究部
The Changing Landscape of Luxury Consumption in China
In recent years, China’s luxury goods consumer base has undergone a significant shift. While the global luxury market has struggled, especially due to a sharp decline in Chinese outbound tourism, the domestic luxury market has experienced a boom. The shopping frenzy at Beijing SKP has even surpassed the scale of overseas shopping sprees seen a decade ago.
The primary consumers of luxury goods in China have transitioned from the industrial elite and the original wealthy class to the “new money”, individuals who have accumulated wealth through the internet and the online celebrity economy. The once-dominant influence of business moguls and second-generation rich individuals has now been eclipsed by this new wave of wealth. With a flick of their wrists, these new consumers have earned the gratitude of luxury brands, prominently featured in their financial reports.
In recent years, high-end real estate has become a top luxury acquisition for the new rich. According to real estate agents, properties priced around 25-30 million yuan are now primarily bought by online celebrities.
The Resilience of China’s Luxury Goods Market Post-Opening
In 2022, while luxury industries in Europe and the U.S. were grappling with a steady decline in growth, China faced even greater challenges in bouncing back. Except for Hermès, most high-end brands struggled during the fourth quarter of 2022. Hermès, however, set a new record with a 40.5% operating profit margin. According to forecasts by consulting firms, global sales aimed at Chinese consumers are projected to grow by 25% to 35% by 2023.
图片来源：VOGUE Business
On January 8, 2023, the Chinese government lifted COVID-19 restrictions, and luxury goods sales in China began to rebound.
By February 18, LV announced a global price increase, which, instead of deterring consumers, sparked a surge in demand. One Beijing netizen even humorously remarked that buying a bag felt like a trip to the market: “Popular models sold out quickly, and there’s a one-hour wait to get into LV stores.”
In February, Swiss watch exports saw a 12.2% increase, with overseas sales reaching 2.24 billion Swiss francs, marking an 8.6% rise from January. In terms of volume, Swiss watch exports in February totaled 75,000 units, up by 6.2%. Notably, Swiss watch exports to mainland China rose by 8.2%, signaling the recovery of the Chinese market. Hong Kong also showed growth, with an increase of 22.2%, suggesting the market is stabilizing or even improving.
Source: 瑞士钟表工业联合会
Travel is Rebounding, But Over 80% of Chinese Spending will Remain Domestic
Tourist traffic in mainland China and Macau has surged rapidly since last month, with hotel occupancy rates climbing. However, a large wave of Chinese tourists heading to Europe is not expected until the summer.
图片来源: VOGUE Business
A stock analyst has pointed out that, in the long term, over 80% of spending by Chinese consumers will continue to happen domestically. As a result, more luxury brands are likely to focus on expanding and establishing stores within China. While luxury boutiques in Shanghai and Beijing currently represent 28% of the total number of stores, Chengdu has become the second most important city for luxury brands. Other cities experiencing the fastest growth in luxury stores include Chengdu, Shanghai, Shenzhen, Dalian, Chongqing, Beijing, and Shenyang.
These trends indicate that Chinese consumers are gradually taking over the role once held by European and American consumers in driving economic growth. As the market recovers, luxury brands should proactively plan strategies for both online and offline channels in China, preparing for a significant sales breakthrough.
