As luxury brands continue to increase their prices, the price disparity between regions worldwide has become more pronounced. China remains the most expensive market for luxury handbags, reinforcing confidence among Chinese consumers. In contrast, Europe, particularly France, offers the lowest prices while the United Kingdom and the United States fall in the middle, and Japan holds the title of the cheapest market for luxury handbags in Asia.
图为Retviews by Lectra统计的四款手袋在中国、美国、法国和英国的价格
Luxury Brands in China Have the Highest Prices and Price Increase
Major luxury brands in China continue to set the highest prices, with significant price hikes compared to other markets. For instance, the CELINE Cabas Triomphe handbag is priced 41% higher in China than the official €2,400 (approximately ¥17,700) listed on the French website.
The price of the Gucci Horsebit 1955 handbag has doubled since early 2022. As of March 2, 2023, the price difference between China and France for this handbag on their official websites was 27%. Similarly, the Gucci Ophidia handbag is 20% more expensive in China than in France.
The price disparity for Bottega Veneta’s iconic “Cabat” woven bag is as much as 42%, with France offering the lowest price. Louis Vuitton’s Neverfull handbag is also cheapest in France, while China has the highest price, followed by the United States and Japan, with a 30% price difference between China and France.
These rising prices and the widening price gap between China and other regions reflect concerns over whether Chinese consumers’ spending in European and American markets will return to pre-pandemic levels.
In 2023, Most Chinese Consumers Will Continue to Buy Luxury Goods Domestically
Before the pandemic, Chinese consumers were the primary drivers of luxury goods sales in markets such as Europe, Japan, and South Korea, with 70% of luxury purchases made overseas.
However, during the three years of the pandemic, luxury brands like Louis Vuitton, Dior, Prada, and Gucci adapted by holding fashion shows, exhibitions, and expanding their presence on e-commerce platforms in China, which helped maintain and even boost their brand awareness among domestic consumers.
In contrast to the appeal of tax refunds and price differences from currency fluctuations, Chinese consumers now place greater value on the services and experiences offered during the shopping process. Studies show that 70% of Chinese luxury consumers prefer to buy through familiar salespeople, and 40% communicate with their sales representatives weekly to reserve their favorite or new-season products.
Analysts predict that while Chinese consumers will continue to make luxury purchases abroad, the proportion will not return to the 70% seen before the pandemic. Data reveals that domestic luxury goods sales in China doubled from 2019 to 2021, reaching RMB 471 billion.
Meanwhile, Hainan, which has heavily invested in offshore duty-free shopping, has become a new destination for luxury goods purchases. The island now hosts five offshore duty-free operators, with over 10 duty-free stores covering more than 220,000 square meters. Luxury giants like LVMH, Kering, and Lefeng have all entered major duty-free malls in the region.
Despite multiple price increases throughout the year, consumers are no longer highly sensitive to luxury brand prices. While many Chinese consumers have traveled abroad and likely bought luxury goods, there is no noticeable shift in their spending habits. Once accustomed to the convenience and elevated shopping experiences, it is difficult for them to settle for anything less.
The High Pricing of Luxury Goods in China Reflects Luxury Brands’ Confidence in Chinese Consumers
In 2022, Chinese consumers remained the most significant force driving the global luxury goods market, with sales reaching RMB 956 billion, accounting for a substantial 38% of global luxury sales.
Data from 2023 shows a notable recovery in consumer demand for clothing and accessories, with interest in these categories rising by 5 and 4 percentage points, reaching 64% and 43%, respectively, compared to the previous year.
